Mauritania -- Sanctions Compliance Regulatory Overview

While Mauritania has not enacted specific legislation directly imposing sanctions on cryptocurrencies or cryptocurrency entities unique to its jurisdiction, its financial sector, including any potential Virtual Asset Service Providers (VASPs), is bound by international anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations, which inherently include sanctions compliance. Furthermore, Mauritania's central bank has taken a restrictive stance on cryptocurrencies.

Here's a breakdown of the cryptocurrency sanctions and restrictions applicable in Mauritania:

Mauritania's Domestic Stance on Cryptocurrencies

The primary "restriction" in Mauritania concerning cryptocurrencies comes from its central bank:

1. 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.

International Sanctions Compliance Requirements for VASPs in Mauritania

As a member of the United Nations and a country subject to international AML/CFT standards, Mauritania and any entity (including a VASP, if one were permitted to operate) within its jurisdiction must comply with international sanctions regimes. Mauritania is also a member of the Intergovernmental Action Group against Money Laundering in West Africa (GIABA), a FATF-style regional body, which means it is expected to implement FATF recommendations.

1. UN Sanctions Compliance

• 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).
• UN Consolidated List:
  • URL: https://www.un.org/securitycouncil/content/un-sc-consolidated-list

2. OFAC (U.S. Department of the Treasury's Office of Foreign Assets Control) Sanctions Compliance

• 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 SDN List:
  • URL: https://ofac.treasury.gov/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-list
• 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)

3. EU Sanctions Compliance

• 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.
  • Sanctioned Entity Screening: Screen against the EU Consolidated List of persons, groups and entities subject to EU financial 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.
• EU Consolidated List:
  • URL: https://sanctionsmap.eu/#/main (Interactive sanctions map, includes consolidated list)

Sanctioned Entity Screening Obligations (Summary for VASPs)

Any VASP attempting to operate or dealing with Mauritanian entities would need to implement robust screening programs that include:

• 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.

Geographic Restrictions

In addition to specific sanctioned individuals and entities, international sanctions regimes impose restrictions on dealings with certain jurisdictions. These typically include:

• 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.).

A VASP in Mauritania, or serving Mauritanian clients, would need to block or restrict transactions originating from or destined for these regions, and implement enhanced due diligence for any activities with heightened risk.

Penalties for Violations

• 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.

Country-Specific Sanctions Lists for Crypto

Mauritania does not have its own unique country-specific sanctions lists that apply to crypto. Its obligations regarding sanctions compliance stem from its adherence to UN Security Council resolutions and general international AML/CFT standards, which indirectly require compliance with lists from major sanctioning bodies like OFAC and the EU for any entity engaging in international financial transactions.

In summary: While Mauritania has not created its own crypto-specific sanctions lists, its central bank has effectively banned regulated financial institutions from dealing with cryptocurrencies. Any VASP, if it were to operate (likely outside the formal financial sector initially), would still be legally obligated under Mauritanian AML/CFT law to comply with international sanctions regimes (UN, OFAC, EU). Failure to do so would expose them to severe legal and financial penalties, both domestically and extraterritorially.