Mauritania -- AML/CFT Compliance Regulatory Overview

**Law N° 2013-030 of 17 July 2013 on Combating Money Laundering and Terrorist Financing (Loi n° 2013-030 du 17 juillet 2013 relative à la lutte contre le blanchiment de capitaux et le financement du terrorisme).**

**For Natural Persons:** Obtain and verify the customer's identity using reliable, independent source documents, data, or information (e.g., national ID card, passport, residence permit). This includes full name, date of birth, place of birth, address, and nationality.

**For Legal Entities/Arrangements:** Obtain and verify the legal entity's name, legal form, proof of incorporation/existence, address of registered office, names of directors/partners, and provisions regulating the power to bind the entity.

**Beneficial Ownership Identification:** Identify and take reasonable measures to verify the identity of the beneficial owner(s) of the customer, including for legal entities and arrangements (e.g., trusts). This typically involves identifying individuals who ultimately own or control more than a specified percentage (e.g., 25%) of the entity.

**Purpose and Intended Nature of Business Relationship:** Understand and, where appropriate, obtain information on the purpose and intended nature of the business relationship or occasional transaction.

**Ongoing Monitoring:** Conduct ongoing monitoring of the business relationship and transactions undertaken throughout the course of the relationship to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile. This includes reviewing transactions for unusual patterns.

**Risk-Based Approach:** Apply CDD measures on a risk-sensitive basis. VASPs must have policies and procedures for assessing and managing risks associated with different customers, products, services, and geographic areas. Enhanced Due Diligence (EDD) must be applied for higher-risk customers (e.g., Politically Exposed Persons - PEPs), complex or unusually large transactions, and situations identified as high-risk. Simplified Due Diligence (SDD) may be permitted for lower-risk situations, but the VASP must be able to demonstrate that the risk is genuinely low.

**Screening:** Screen customers against national and international sanctions lists (e.g., UN Security Council resolutions).

**Obligation to Report:** If a VASP knows, suspects, or has reasonable grounds to suspect that funds or other assets, regardless of their amount, are proceeds of a criminal activity or are linked to terrorist financing, it must promptly report this to the Financial Intelligence Unit (FIU).

**No Tipping-Off:** VASPs and their employees are prohibited from disclosing to the customer or to third parties that a suspicious transaction report has been or will be submitted.

All data obtained through CDD procedures (identification documents, beneficial ownership information).

Records of transactions, including the amount, currency (virtual and fiat, where applicable), dates, and parties involved (originator and beneficiary information, as per FATF Travel Rule principles).

Records of suspicious transaction reports submitted.

**Cellule Nationale de Traitement du Renseignement Financier (CENTRIF)** - The Financial Intelligence Unit (FIU):

**Role:** CENTRIF is the central national authority for receiving, analyzing, and disseminating suspicious transaction reports (STRs) and other financial intelligence concerning money laundering and terrorist financing. It collaborates with national and international law enforcement agencies.

**Banque Centrale de Mauritanie (BCM)** - The Central Bank of Mauritania:

**Role:** The BCM is the primary financial sector regulator. It issues regulations, guidelines, and directives for financial institutions, including potentially for VASPs if they fall under the definition of financial service providers or if specific VASP regulations are developed. The BCM is responsible for licensing, supervision, and enforcing compliance with financial sector laws and regulations, including AML/CFT.

**Seek legal counsel:** To get the most up-to-date and specific guidance on their obligations.

**Engage with regulators:** Proactively approach the BCM and CENTRIF to understand their expectations and any potential licensing or registration requirements.

**Monitor regulatory developments:** The virtual asset space is rapidly evolving, and Mauritania's regulatory stance may change.

**Ban on Financial Institutions Dealing with Cryptocurrencies:**

**Legal Reference:** **Circular N° 004/R/2019** issued by the **Banque Centrale de Mauritanie (BCM)** (Central Bank of Mauritania).

**Content:** This circular prohibits banks, financial institutions, and payment service providers supervised by the BCM from engaging in any activities related to cryptocurrencies, including buying, selling, holding, or facilitating transactions involving them. It cites concerns about financial stability, consumer protection, money laundering, and terrorist financing.

**Implication:** This circular effectively creates a hostile environment for formal VASPs to operate legally within Mauritania's regulated financial sector. While it doesn't criminalize individual use, it severely limits access to crypto through traditional financial channels and makes operating a VASP challenging.

**URL (BCM Website):** While a direct public link to the specific circular is often hard to find on central bank archives without specific search, general policy statements or mentions often confirm its existence. The BCM's regulatory authority for financial institutions is generally established by laws such as:

**Loi No. 2005-006 portant statut de la Banque Centrale de Mauritanie (Law No. 2005-006 on the Status of the Central Bank of Mauritania)** (This law establishes the BCM's powers to regulate financial institutions).

*Finding a direct public link to the specific circular N° 004/R/2019 can be difficult without access to official Mauritanian legal databases, but its existence and content are widely reported in financial compliance circles regarding the MENA region.*

**Requirements for VASPs:** All UN member states, including Mauritania, are obligated to implement sanctions resolutions adopted by the **UN Security Council (UNSC)**. This means any financial entity, including a VASP, must:

**Sanctioned Entity Screening:** Screen all customers (individuals and entities) and beneficiaries against the **UN Security Council Consolidated List**. This list includes individuals and entities associated with terrorism (Al-Qaida, ISIS/Da'esh), the Taliban, and other specific country-based sanctions regimes (e.g., North Korea, Iran, Libya, Sudan, Yemen, Mali, etc.).

**Asset Freezing:** Freeze the funds and other financial assets or economic resources of individuals and entities designated on the UNSC Consolidated List.

**Prohibition of Transactions:** Prohibit any transactions, direct or indirect, with or for the benefit of sanctioned individuals or entities.

**Reporting:** Report any matches or attempts to circumvent sanctions to the Mauritanian Financial Intelligence Unit (FIU), the **Cellule Nationale de Traitement du Renseignement Financier (CNTRF)**.

**Legal Basis in Mauritania:** Mauritania's **Law No. 2013-030 on Combating Money Laundering and Terrorist Financing** (and its subsequent amendments) provides the domestic legal framework for implementing these obligations, including the freezing of assets.

**URL (General AML Law):** Information on Mauritania's AML/CFT laws is often found on the CNTRF website: https://www.cntrf.mr/ (While a direct link to the full text of Law 2013-030 might not be readily available in English, its existence and purpose are clear).

**Requirements for VASPs:** While OFAC sanctions are primarily U.S. law, their extraterritorial reach is significant due to the global dominance of the U.S. dollar and the U.S. financial system. Any VASP, regardless of its location, that deals with U.S. persons, uses U.S. dollar clearing services, or processes transactions that touch the U.S. financial system, must comply with OFAC sanctions.

**Sanctioned Entity Screening:** Screen against the **Specially Designated Nationals and Blocked Persons (SDN) List** and other OFAC sanctions lists (e.g., Sectoral Sanctions Identifications List, Non-SDN Palestinian Legislative Council List).

**Blocking Property:** Block (freeze) the property and interests in property of designated individuals and entities.

**Prohibition of Dealings:** Prohibit any dealings with individuals or entities on OFAC lists or related to sanctioned jurisdictions.

**Geographic Restrictions:** Prohibit or severely restrict transactions involving certain comprehensively sanctioned jurisdictions (e.g., Cuba, Iran, North Korea, Syria, certain regions of Ukraine).

**OFAC Guidance on Virtual Currency:**

**URL:** https://ofac.treasury.gov/faqs/all/201 and https://ofac.treasury.gov/media/908356/download?inline (OFAC Sanctions Compliance Guidance for the Virtual Currency Industry)

**Requirements for VASPs:** EU sanctions apply to all persons and entities operating within EU jurisdiction, and to EU persons and entities operating anywhere in the world. Non-EU VASPs dealing with EU persons or entities, or processing transactions involving EU-based assets, should consider EU sanctions.

**Asset Freezing:** Freeze funds and economic resources belonging to, or owned or controlled by, designated persons and entities.

**Prohibition of Funds/Economic Resources:** Make no funds or economic resources available, directly or indirectly, to or for the benefit of designated persons and entities.

**URL:** https://sanctionsmap.eu/#/main (Interactive sanctions map, includes consolidated list)

**Know Your Customer (KYC) / Customer Due Diligence (CDD):** Collection and verification of customer identities.

**Sanctions List Screening:** Regular and ongoing screening of all customers, beneficial owners, and transaction counterparties against the UN Consolidated List, OFAC SDN List, and the EU Consolidated List. This extends to wallet addresses associated with known sanctioned entities or illicit activities.

**Real-time & Batch Screening:** Implementing both real-time screening for new onboarding and transactions, and batch screening for existing customer bases as sanctions lists are updated.

**Adverse Media Screening:** Monitoring for negative news related to sanctions evasion, ML/TF, or other illicit activities.

**Source of Funds/Wealth:** Verifying the legitimate source of crypto funds and wealth, especially for high-value transactions.

**Comprehensively Sanctioned Jurisdictions:** Cuba, Iran, North Korea, Syria (under OFAC).

**Other High-Risk Jurisdictions:** Countries or regions subject to specific UN, OFAC, or EU sanctions programs due to terrorism, proliferation, human rights abuses, or destabilizing activities (e.g., certain regions of Ukraine, Venezuela, Myanmar, Afghanistan, etc.).

**Under Mauritanian Law:** Violations of AML/CFT Law No. 2013-030 (which covers sanctions implementation) can lead to significant penalties, including:

**Fines:** Substantial monetary fines for individuals and legal entities.

**Imprisonment:** For individuals involved in money laundering, terrorist financing, or serious sanctions evasion.

**Asset Forfeiture:** Confiscation of assets involved in or derived from illicit activities.

**Administrative Sanctions:** For regulated entities, this could include license revocation, operational restrictions, and public reprimands from the BCM or CNTRF.

**URL (CNTRF):** The CNTRF is the primary enforcement body for AML/CFT in Mauritania: https://www.cntrf.mr/

**Under OFAC/EU Sanctions (Extraterritorial):** Even without direct Mauritanian enforcement, a VASP that violates OFAC or EU sanctions could face:

**Massive Fines:** OFAC and EU sanctions violations carry severe civil and criminal penalties, potentially amounting to millions or billions of dollars.

**Imprisonment:** For individuals involved in criminal violations.

**Reputational Damage:** Significant harm to the entity's reputation, making it difficult to operate internationally.

**Loss of Access to Financial System:** Being cut off from the U.S. or EU financial systems.