Mauritius Removal from FATF Blacklist
Over the years, Mauritius has successfully managed to build and maintain its image as an ideal social and economic state. It is no surprise numerous investors across the world have founded Mauritius as their investment haven.
The win against FATF blacklist
It is public knowledge that Mauritius was ‘blacklisted’ by the Financial Action Task Force (FATF) and the European Union (EU). The FATF, popularly recognized by its French name, Groupe d’action financière, is an intergovernmental body established in the 1980s to develop policies to battle money laundering.
On 7 May 2020, Mauritius and 11 other nation-states were incorporated on a revised list of high-risk nations with ‘strategic drawbacks in their anti-money laundering and counter-terrorist financing frameworks’ (AML-CFT Framework).
When the FATF blacklists a state, it generally implies that the state has been placed under jurisdiction monitoring and has agreed to resolve the specified strategic drawbacks within acceded timespans.
After being included in the notorious ‘grey list,’ Mauritius wasted no time and effort to ensure the country was off that notorious list. The country had to periodically submit progress reports to the FATF, which it did. FATF representatives then scrutinize the reports and forward them for further discussion at a FATF Plenary session.
Thankfully, the plenary was pleased that all drawbacks had been remedied, and the country was duly withdrawn from the ‘grey list’. Currently, the country is successfully removed from the list of countries blacklisted by the FATF. It is indeed commendable that despite the covid-19 pandemic that hit all countries hard, Mauritius managed to remove itself from the list of blacklisted countries.
Mauritius’ Economic Relationship with Other Countries
Mauritius has successfully managed to mediate more than 8% of all Foreign Direct Investments into Africa. Managing such a feat goes a long way in showing how this jurisdiction is committed to remaining a significant commercial capital for trade, investment and business structuring for both multinationals and high net worth people.
Mauritius is on a trajectory of attracting investments and becoming a competitive business hub for new markets. Testament to this is its solid bilateral economic relations with countries like Kenya.
Between Mauritius and Kenya exists a Double Taxation Avoidance Agreement (DTAA) that serves as a promotional tool for foreign investment. This agreement allows tax exemptions to all Mauritius and Kenyan residents and stimulates international investments without much ambiguity.
Mauritius has for a long time been helping investors seeking a jurisdiction suitable for an ideal investment. Given the varied legal and technical facets, investors are generally advised on where and how to channel their investment.
Why would you invest in Mauritius?
For investors seeking to set up businesses in foreign countries, Mauritius is a country worth considering. The country has recently joined the list of high-income countries in Africa. It is worth noting that it reached this milestone despite the global COVID-19 pandemic, which ravaged the economy of most countries.
Mauritius is one of the many countries in Africa where it is easy for both locals and investors to do business.
On the World Bank’s Ease of Doing Business Index rating, Mauritius economy is ranked highest for multiple valid reasons, including;
- Ideal location
- Favourable tax laws
- Openness to foreign investment
- Liberalization of the financial and banking sector
Mauritius has a very good tax regime that greatly favours investors, both locals and foreigners. Their most attractive tax benefits comprise of :
- No inheritance,
- No exchange control,
- No wealth or gift tax; and
- No capital gains tax
Furthermore, their Corporate tax is less than 16%. With the country’s overall tax treaty network being quite solid, it is easy to see why this country is a world-beater when it comes to attracting investors.
Wrapping it up
If you are a property investor, it is hard to argue that Mauritius is an ideal destination to invest in. Given its proximity to South Africa, many people are currently buying pieces of property and investing in the beautiful island.
The island is also a 4-hour flight to and from Johannesburg airport. Given that Johannesburg remains a major business hub, investors can easily travel to and from Mauritius and easily transact business.
If you are thinking about investing in Mauritius, it’s not too late to implement that idea. With the delisting from the UK grey list, Mauritius has never been a better place to invest. It is obvious that their commitment to remain a reputable business hub is something solid to rely on as an investor.