“Protecting our good repute is a shared national responsibility”

Shameemkhan Abdoolakhan, Director of Talent & Technical Development – The Axis Academy

In the fight against financial crime, fiduciaries, directors, and professionals are more than service providers – they are custodians of the nation’s reputation. In this interview, Shameemkhan Abdoolakhan, Director of Talent & Technical Development at the Axis Academy, explains how Mauritius is leveraging education, proactive regulation, and international collaboration to safeguard trust, uphold ethical standards, and position itself as a resilient and credible financial hub.

As a partner to this conference, how do you see initiatives like the Comsure Financial Crime Conference strengthening Mauritius’ standing as a credible international financial centre?

This conference has two key dimensions. The first is the educational aspect, which is being driven in partnership with the Axis Academy. The Academy plays a vital role in providing high-quality training and up-to-date information to industry practitioners. Through this collaboration, the conference brings together compliance officers and financial services professionals under one roof to stay informed about the latest developments in financial crime, risk management, and regulatory frameworks, while also exploring practical solutions collectively.

The second dimension is its international engagement. As an annual event, it attracts global experts and speakers who share their insights and experiences with local stakeholders. This exchange of knowledge not only strengthens the technical capacity of our professionals but also enhances Mauritius’ reputation as a proactive and well-regulated international financial centre.

As a growing and increasingly mature jurisdiction, Mauritius must continue to host and encourage such initiatives regularly. They demonstrate our commitment to international best practices, continuous learning, and collaboration.

The theme “Guardians of Paradise” suggests that fiduciaries, directors and professionals are not just service providers, but also custodians of the country’s reputation. How do you interpret this responsibility?

The first line of defence in the fight against financial crime, money laundering, and other risks lies within the institutions themselves. Professionals working in governance, risk, compliance, and financial crime prevention carry a critical responsibility as they are the ones who ensure that systems, controls, and ethical standards are upheld.

To truly fulfil this role, practitioners must stay well-informed and up to date with evolving legislation, regulations, and international best practices. But beyond that, they must also move away from a mere “tick-box” approach to compliance. Compliance should not be about simply meeting the minimum requirements, but rather about understanding the spirit of the law and applying it practically and effectively.

In that sense, the theme “Guardians of Paradise” is very fitting. As fiduciaries, directors, and professionals, we are not just service providers but also the custodians of Mauritius’ reputation. Each of us stands as a knight in armour, defending the integrity and credibility of our jurisdiction. Protecting our good repute is not just a professional duty; it is a shared national responsibility.

How well equipped is Mauritius – from a legal, regulatory and institutional standpoint – to maintain this delicate balance between compliance stringency and business competitiveness?

Mauritius is generally well equipped. In fact, some even argue that Mauritius is over-regulated. The country has established a robust framework composed of multiple institutions – including the Financial Services Commission (FSC), the Financial Intelligence Unit (FIU), and more recently, the Financial Crimes Commission (FCC) – in addition to the regular police force. Each of these bodies is empowered and equipped to combat financial crime and money laundering.

Having said that, regulation in itself is not a disadvantage. It is, as we often say in French, “un mal nécessaire.” Stringent regulations are essential not only to meet international standards, but also to preserve the integrity and credibility of Mauritius as a financial centre. The key, however, lies in effective enforcement. It is not enough to have sound laws and institutions; what truly matters is how effectively these laws are applied and enforced.

In recent years, we have observed a positive trend in this regard. The FCC has been particularly proactive in tackling financial crime, supported in the background by the FIU and the FSC, which continue to play their roles as vigilant regulators.

Despite these regulatory layers, Mauritius remains a highly competitive jurisdiction. Our competitiveness stems not from light regulation, but from trust and reputation. Mauritius has built a name as a well-regulated, transparent, and credible jurisdiction – a reputation that gives investors and clients confidence. As a small jurisdiction, comparable in some respects to Luxembourg or Jersey, our strength lies precisely in this balance between robust oversight and a pro-business environment.

Finally, maintaining this reputation is crucial. Since Mauritius successfully exited the FATF grey list in 2021, the authorities have been determined to ensure that the country does not regress. Continued vigilance, effective enforcement, and commitment to best international practices are what allow Mauritius to preserve both its regulatory integrity and its attractiveness as a global business hub.

What role do collaborative initiatives between regulators, private firms and associations play in enabling Mauritius to outsmart financial crime rather than simply react to it?

These initiatives play a crucial role. Today, there exists a strong and constructive working relationship between regulators and operators within the financial services ecosystem. Industry associations such as Mauritius Finance act as key platforms for dialogue, ensuring that the private sector maintains an open and direct line of communication with regulators, particularly the FSC and other oversight bodies.

This collaborative framework facilitates early detection and reporting of suspicious activities. Mechanisms are in place that enable firms to share intelligence and report suspicious transactions efficiently, allowing the authorities to respond swiftly and strategically. Such cooperation ensures that the fight against financial crime is not confined to enforcement alone, but extends to prevention and anticipation.

Importantly, regulators themselves have become increasingly proactive. The FSC, for example, has demonstrated a firm commitment to leading investigations and taking decisive action, even in cases involving high-profile individuals. This reflects a significant shift in mindset and capability.

I think that if we compare the current landscape in 2025 to a decade ago, Mauritius is now far more equipped to tackle financial crime. The collaborative culture between the public and private sectors is a major reason for this progress, transforming the country’s approach from reactive compliance to proactive intelligence-led enforcement.

The new offence of fraud by abuse of position is a significant step in corporate accountability. What practical impact do you foresee for directors and fiduciaries operating in Mauritius?

This provision is quite similar to legislation already in force in the United Kingdom, and its inclusion in our legal framework sends a strong signal about the country’s commitment to ethical conduct and good governance.

From my perspective, this law will have a strong deterrent effect. The offence is drafted in broad terms, which means it covers a wide range of potential misconduct. At the heart of this provision lies a fundamental concept, which is trust. As fiduciaries, directors, and trustees, we are entrusted with clients’ assets and are expected to act with utmost integrity, loyalty, and care. Our entire business model is built on that foundation of trust.

“Stringent regulations are essential not only to meet international standards but also to preserve the integrity and credibility of Mauritius as a financial centre. The key, however, lies in effective enforcement.”

A breach of this trust, whether through the mishandling of client funds or the abuse of fiduciary authority, would now clearly fall under the scope of this offence. It reinforces the idea that those in positions of responsibility must not only comply with the law, but also uphold the highest ethical standards in their dealings.

In practical terms, directors and fiduciaries operating in Mauritius will need to exercise even greater diligence and transparency in decision-making, governance, and client relations. This new provision essentially serves as a wide safety net, ensuring that any abuse of entrusted power is met with appropriate legal consequences.

Ultimately, once trust is broken, everything else collapses. This law therefore serves as both a deterrent and a reminder of the critical importance of maintaining integrity in every fiduciary relationship.

Could you elaborate on the types of conduct or governance lapses that might trigger liability under this offence?

As I said, this new offence covers a wide range of positions. When we talk about fraud by abuse of position, it is not limited to one specific role. You could be acting as a director, a board member, a trustee, or even as part of a subsidiary company. Essentially, it applies to any situation where you are entrusted with information, authority, or assets belonging to others.

If you misuse that trust or abuse the power that comes with your position, you could fall under the scope of this offence. And the implications are serious. Directors, for example, carry personal liability, which means they can be held personally accountable for any wrongdoing. The penalties can extend far beyond just the value of the transaction involved. There could be further escalation, including civil litigation or criminal prosecution, depending on the gravity of the breach.

At the core of all this is trust. Again, once that trust is broken, especially in a fiduciary or corporate setting, it undermines not only the relationship with the client but also the integrity of the wider financial system. So, this law serves as both a deterrent and a reminder that those in positions of authority must exercise that power responsibly, transparently, and in good faith.

Do you see this legislative change aligning Mauritius more closely with international governance standards, or does it go a step further in imposing personal accountability?

I would say this legislative change primarily brings Mauritius in line with other reputable international jurisdictions. It reflects our ongoing commitment to upholding the same high standards of governance and accountability seen in well-regulated financial centres around the world.

This is certainly not a setback for Mauritius. On the contrary, it strengthens our regulatory framework and reinforces the country’s reputation as a trusted and transparent jurisdiction. The new provision will also serve as a strong deterrent, encouraging fiduciaries and directors to think twice before engaging in – or even inadvertently committing – acts that could be construed as fraudulent or as an abuse of position.

In that sense, the law promotes greater caution, diligence, and personal responsibility among professionals. It reminds us to handle entrusted duties with the utmost care and integrity. Ultimately, this change not only aligns us with international best practices but also reinforces investor confidence and trust in Mauritius as a jurisdiction that values accountability and good governance.

What are the main safeguards fiduciary professionals should implement to ensure compliance and avoid inadvertent exposure? 

What immediately comes to mind is that fiduciary professionals must always operate with the highest level of ethics and integrity. That is the starting point. Beyond technical compliance, it is really about maintaining a strong ethical compass in every decision.

In practical terms, there are already several codes and frameworks in place, such as the Code of Corporate Governance and the various guidelines issued by the FSC. Professionals should ensure they are fully familiar with these standards and adhere to them rigorously.

It is also important to foster a culture of continuous compliance and professional diligence within firms. That means regular training, robust internal controls, and clear reporting lines to detect and prevent potential breaches early on.

Ultimately, compliance is not just about ticking boxes; it is about protecting trust – trust between fiduciaries and clients, and trust in Mauritius as a reputable financial centre. By upholding high ethical and professional standards, fiduciary professionals not only protect themselves from inadvertent exposure but also contribute to the integrity and sustainability of the entire sector.

“At the core of all this is trust. Once that trust is broken, especially in a fiduciary or corporate setting, it undermines not only the relationship with the client but also the integrity of the wider financial system.”

How can this new legal framework shape a stronger ethical culture across boards and fiduciary structures? 

The new legal framework can do so by reinforcing accountability, transparency, and integrity in governance practices. However, its effectiveness depends on being interpreted and applied in conjunction with other relevant provisions and complementary legislation. When these legal instruments operate together, they create a comprehensive regulatory environment that not only deters financial misconduct but also promotes proactive ethical behaviour.

By aligning fiduciary duties with broader legal and ethical standards, the framework encourages directors and board members to go beyond mere compliance and to embed ethical considerations into decision-making processes. Over time, this integrated approach can foster a culture where ethical conduct is not just a legal requirement but a fundamental organizational value.

Finally, do you believe enforcement will be complemented by education and guidance to help professionals in Africa?

Absolutely. I strongly believe that enforcement must be complemented by education and guidance to ensure professionals across Africa are well-equipped to uphold high standards. Training and continuous professional development are crucial for Mauritius and other jurisdictions to build a reputation for integrity and excellence.

Much like the CPD (Continuing Professional Development) requirements for compliance officers and money laundering reporting officers, ongoing education ensures that professionals remain up to date with evolving regulatory standards, emerging risks, and best practices in compliance, risk management, and anti-money laundering.

As regulatory expectations continue to rise, staying informed is essential for maintaining credibility and fostering a culture of ethical compliance.

In essence, education and guidance are not just complementary to enforcement; they are central to creating a sustainable and respected financial jurisdiction.