Mauritius and the 2027 FATF Evaluation: What Businesses and Investors Need to Know
Mauritius’ Next FATF Evaluation: A Strategic Milestone
Mauritius is scheduled to undergo its next Financial Action Task Force (FATF) and Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Mutual Evaluation in 2027. As discussions surrounding anti-money laundering (AML), counter-terrorist financing (CFT) and regulatory compliance continue to gain attention, many stakeholders are asking an important question:
Is Mauritius at risk of returning to the FATF Grey List?
While the upcoming evaluation should certainly be taken seriously, it is important to approach the subject with perspective and technical understanding. The next assessment will not be based solely on isolated events, individual investigations or public commentary. Rather, it will evaluate the overall effectiveness of Mauritius’ AML/CFT framework and its ability to meet evolving international standards.
For businesses, investors, financial institutions and international groups operating through Mauritius, understanding the FATF evaluation process is essential.
Understanding the FATF Evaluation Process
The FATF is the global standard-setter for anti-money laundering, counter-terrorist financing and counter-proliferation financing measures.
Through its network of regional bodies, including ESAAMLG, jurisdictions are periodically assessed to determine whether their AML/CFT frameworks comply with international standards and operate effectively in practice.
Historically, evaluations focused heavily on technical compliance, meaning whether the appropriate laws, regulations and procedures were in place.
Today, the methodology has evolved significantly.
The emphasis is increasingly placed on effectiveness.
This means assessors seek to determine whether regulatory frameworks produce measurable outcomes and whether institutions are effectively implementing AML/CFT obligations in practice.
Why Mauritius Was Grey Listed in 2020
In February 2020, Mauritius was placed on the FATF Grey List following the identification of strategic deficiencies requiring remediation. These included areas such as beneficial ownership transparency, risk-based supervision, money laundering investigations, supervision of designated non-financial businesses and professions, and the implementation of targeted financial sanctions.
Following significant reforms and the implementation of an action plan agreed with FATF, Mauritius was removed from the Grey List in October 2021 after successfully addressing the identified deficiencies.
The experience demonstrated the country’s ability to mobilise regulators, policymakers and industry participants to implement substantial reforms within a relatively short timeframe.
What Will FATF Assess in 2027?
The upcoming evaluation will focus on both technical compliance and effectiveness.
Particular attention is expected to be given to the FATF Immediate Outcomes framework, which assesses whether AML/CFT measures are functioning effectively across the jurisdiction. These outcomes include risk assessment, international cooperation, supervision, preventive measures, beneficial ownership transparency, financial intelligence, money laundering investigations, confiscation of criminal proceeds and targeted financial sanctions.
In practical terms, assessors will evaluate whether:
- regulators conduct effective risk-based supervision;
- beneficial ownership information is accessible and reliable;
- financial institutions implement AML/CFT obligations effectively;
- law enforcement agencies investigate complex money laundering cases;
- international cooperation mechanisms operate efficiently;
- sanctions and enforcement measures are implemented consistently.
The focus will therefore be on demonstrating effectiveness rather than simply evidencing compliance.
Recent Reforms Strengthening Mauritius’ Position
Mauritius continues to strengthen its AML/CFT framework.
Recent legislative amendments adopted in 2026 focused on reinforcing beneficial ownership transparency, supervisory effectiveness, enforcement powers, inter-agency coordination and broader implementation mechanisms in preparation for the next evaluation cycle.
These reforms reflect the country’s commitment to maintaining its reputation as a recognised and reputable International Financial Centre.
Importantly, Mauritius remains among a limited number of jurisdictions that have achieved a Compliant or Largely Compliant rating across all 40 FATF Recommendations.
Why the Evaluation Matters for Businesses and Investors
The FATF evaluation extends far beyond regulatory authorities.
Its outcome may influence:
- investor confidence;
- cross-border business activity;
- correspondent banking relationships;
- due diligence requirements;
- access to international markets;
- overall perceptions of Mauritius as an investment jurisdiction.
A strong regulatory reputation supports confidence and facilitates international business operations.
Conversely, increased monitoring or negative perceptions may contribute to additional compliance requirements, transaction friction and higher operational costs.
For international businesses operating through Global Business Companies (GBCs), investment structures, funds and regulated entities, regulatory credibility remains a critical component of long-term success.
The Importance of Demonstrating Effectiveness
One of the key messages emerging from the revised FATF methodology is that effectiveness matters.
Strong legislation alone is no longer sufficient.
Jurisdictions must demonstrate that regulators, financial institutions, service providers and enforcement agencies work together to produce meaningful outcomes.
For Mauritius, the challenge is not simply maintaining compliance.
It is demonstrating that the AML/CFT framework operates effectively, consistently and sustainably over time.
This requires ongoing collaboration between regulators, management companies, financial institutions, professional service providers and policymakers.
Looking Ahead to 2027
The 2027 FATF evaluation should be viewed as an opportunity rather than a threat.
It offers Mauritius the opportunity to demonstrate the maturity of its regulatory framework, the effectiveness of its supervisory systems and its commitment to international standards.
Maintaining confidence in Mauritius as a respected International Financial Centre will require continued focus, preparation and regulatory discipline.
Balanced, informed and technically grounded discussion remains essential as the country prepares for the next phase of the evaluation process.
How GWMS Can Assist
GWMS Ltd supports international businesses, investors and regulated entities with structuring, licensing, governance and compliance matters in Mauritius.
Our team assists clients in navigating evolving regulatory requirements while maintaining alignment with local and international expectations.
To discuss your structuring, licensing or compliance requirements, contact our team:
📱 WhatsApp: (+230) 5936 4636
☎️ Tel: (+230) 454 9670
📧 Email: info@gwms.mu
Disclaimer: This article is intended for general informational purposes only and does not constitute legal, regulatory, tax or compliance advice. Readers should seek independent professional advice where appropriate.
