The European Union has included Mauritius on its revised list of high-risk countries with strategic deficiencies in anti-money laundering and counter-terrorist financing frameworks. Famous as a financial haven in Africa, Mauritius harbours investments by wealthy individuals within and outside the continent who build companies and investments on the island because o its favourable tax system.
Mauritius allows a 100 percent foreign ownership of businesses with no capital gains, taking a corporate tax of 15 percent and export taxes three percent.
Earlier in the year, the country was included in the EU grey list of financial haven. According to a statement by its executive arm, the European Commission (EC), the revised list will now be submitted to the European Parliament and Council for approval within one month (with a possible one-month extension) and the country status of the new listing will take effect on October 1.
Read more: The EastAfrican.