Lawyer François de Senneville, partner and head of the Africa Group at the Paris firm Fieldfisher, shares his opinion on the situation in the Global Business sector, more particularly on the country's inclusion on the financial action task force's grey list and on the EU's blacklist in the fight against financial crime. A situation that greatly "mortgages" the future of the Global Business sector. Whatever we say, he makes it clear that the reputation of our jurisdiction has been affected and that operators and prescribers have had a lot to do in 2020 to try to explain "that this is only a stealth passage, momentary and unfair" on these lists.

To what extent has Global Business been affected since the pandemic?

Covid-19 has, for a year now, led to a disruption of the global economy, slowed down international investment projects and significantly hampered travel around the world. Add to that the uncertainties and negative impacts on investor sentiment that this context generates and you will understand that it is not credible to argue that the pandemic has not deprived the Global Business sector of a significant part of its 2020 turnover. This does not mean, however, that this sector has not demonstrated on this occasion its resilience: who does not kill strengthens, says the saying!

This episode, which is probably expected to last a few more months in the best scenario, while vaccinations have developed sufficiently in the world, will not have had only negative aspects: for example, teleworking with the use of technology has greatly allowed operators to save furniture the year. Last. It should be generalized and sustained, without leading to the dislocation of professional groups. A balance will certainly be found to work differently than before, while preserving the synergies and physical exchanges essential between professionals who wish to work as a team.

Has Mauritius' image and reputation, on a global scale, been affected since our jurisdiction is on the FATF grey list and the European Union's blacklist?

Here too, how can we validly say that being placed on a European Union blacklist may not be very damaging to our international image? Unfortunately, this is a no-brainer. Operators and prescribers had a lot to do in 2020 to try to explain that this was only a stealthy, momentary and unfair passage of Mauritius on these lists. The pleading had to be of quality, because questioning the choice of these authorities to place us on their gray and black list led de facto to maintain that we should not trust these "policemen of the economy". Public opinion has very little time to form an opinion and understand a debate that is primarily aimed at experts. When in doubt, the investor at best delays and at worst refrains from investing. Isn't it customary to hear "Lie, lie and lie again and there will always be something left"? So true or false, just or unfair, the damage is done for the reputation of Mauritius and it is therefore urgent and priority to get out of these lists to regain the credit that the inclusion of Mauritius in them cost us last year.

What are the means to implement to get out of it?

In its latest press release, dated 25 October 2020, the Mauritian Ministry of Financial Services and Good Governance announced that the FATF — the authority emanating from the OECD, which decided to place Mauritius on its grey list in early 2020 (which resulted in, in the aftermath, the country's blacklist of States that do not sufficiently combat money laundering and the financing of terrorism), had recognized Mauritius' considerable progress on this issue.

Specifically, on the occasion of its transfer in October 2020, the FATF reportedly acknowledged Mauritius' substantial efforts to strengthen its domestic legislation – ahead of the deadline it was given to do so – and adopt best practices to bring Mauritian legislation up to par with those of other countries that are effectively fighting against these scourges. On the occasion of this transfer, Mauritius was encouraged to continue its efforts to achieve this and continue to work with the FATF to carry out the remaining actions to be undertaken that were requested to fully satisfy the FATF.

The Ministry of Financial Services acknowledged, in the same press release, that it continued to make progress regarding its actions that remained to be undertaken to satisfy the FATF and could reasonably envisage, at the end of the implementation of these same actions, to be removed from the gray list of this organization. Undertaking these remaining actions was therefore the means clearly indicated by the FATF for Mauritius to be able to validly claim to be off the grey list.

At this point, would you say that the Mauritian authorities have done what you think is necessary?

Since that press release, I am not aware of any details regarding these remaining actions and the progress made in completing them since October 2020. As the same statement was intended to reassure the community of investors and operators of the so-called Global Business sector, going so far as to ensure that the Mauritian authorities had "turned every stone" to not neglect any effort that can be undertaken to satisfy the FATF, we can therefore legitimately think that Mauritius has nothing more to do today on the grey list of the FATF and that we are heading, in the coming weeks, towards a decision of this authority to share this observation and officially remove Mauritius from this list.

However, since this press release, I recall that I am not aware of any details from the local authorities concerning the additional actions that conditioned a possible removal from this list or the details concerning the actions carried out and likely to be highlighted as progress to satisfy the FATF and thus hope for this r result. While such actions have been carried out, it is regrettable that the Mauritian authorities did not see fit to communicate about them to reassure the business community in general.

After the cold shower of the European Union's blacklist in early 2020, one could legitimately think that, in order to improve their governance in general, the Mauritian authorities would have made an effort to question themselves to identify the reasons why they had found themselves on the blacklist and the axes of improvement of their governance so that such an episode never again jeopardizes the most promising whole sector of our national economy, namely that of financial services. In the aftermath, legal and lobbying professionals of an international calibre were mandated so that the country has the best to get out of this situation as quickly as possible, which has since greatly mortgaged the Global Business sector.

How soon can we expect to get off these lists?

A first buoy could not be seized to avoid the official entry of Mauritius on the Black List about six months ago. Given the quality of the crew and the above-mentioned elements, it is legitimate to think that Mauritius will not miss, in a few weeks, the new opportunity that the next FATF meeting will give it to achieve its objectives. If the country does not succeed, it will then be necessary to ask the right questions to rectify the situation as soon as possible. Indeed, if Mauritius now has all the legal arsenal to effectively fight against money laundering and the financing of terrorism, but no case led to a conviction by the local authorities competent to convict and punish the culprits, we will not be able to avoid international bodies from remaining somewhat doubtful and perplexed about the real determination of the authorities. Mauritian women to fight effectively against these scourges. I personally had the opportunity to briefly raise this subject with senior French authorities a few days ago.

As a reminder, assurances were reportedly given by the European Union to Mauritius last year for an exit from its blacklist just a few days after the country's exit from the FATF grey list. Let us hope that this happens as soon as possible. In conclusion, I would say that there are reasons to remain confident, but we cannot totally exclude an unpleasant surprise about mauritius' exit from the European Union blacklist in the coming weeks. Let's wait and see...