Accountability of Financial Institutions Strengthened
The Mauritius Commercial Bank Ltd (MCB) was prosecuted under section 3(2) of the Financial Intelligence and Anti-Money Laundering Act (FIAMLA) 2002 for failing to implement adequate internal controls to prevent misuse of its services for money laundering. Convicted by the Intermediate Court in 2017 and fined MUR 1.8 million, MCB appealed.
The Supreme Court dismissed the appeal, holding that section 3(2) FIAMLA creates a distinct: criminal liability arises when a financial institution fails to take reasonable preventive measures, regardless of whether laundering actually occurs. The Court found MCB’s internal audit and compliance systems ineffective in practice. While upholding the conviction, it reduced the fine to MUR 1.2 million due to procedural delays.
Key Takeaways
- In respect to the contention that the Accused had not been provided with the opportunity to provide his version, it was highlighted that Accused had not availed himself of such opportunity when he was requested to do so. The public interest of justice will therefore outweigh any likely prejudice to the Accused and tilt the scale in favour of trial.
- Proof of money laundering is not required under section 3(2) of the FIAMLA.
- Banks must proactively prevent misuse of their services.
- Compliance manuals are insufficient unless effectively implemented.
Click here to read the full judgment: https://fcc.mu/THE-MCB-LTD-v-ICAC-2025.pdf