Deregulation of the Mauritian insurance industry to efficiently tackle money laundering: A comparison with Singapore

Abstract

This paper aims to assess the current legal framework for money laundering control in the insurance sector. Essentially, this examination is premised on the interrogation of whether it is still appropriate for Mauritius to apply such stringent, opaque, and unyielding Anti-Money Laundering/Combatting the Financing of Terrorism (AML/CFT) norms and rules on general insurance when developed nations such as Singapore have done away with them for more effective combat against money laundering. It would also be assessed why the Financial Services Commission of Mauritius (FSC) cannot draw inspiration from its Singaporean counterpart in fighting money laundering more effectively. It is observed that a move towards deregulation of the legal framework on money laundering in the insurance sector with a more relaxed approach is more effective for the Mauritian insurance sector. Evidence is drawn from the Singaporean model. A restructuring of the Financial Services Commission of Mauritius is also warranted for such an approach to be adopted.