Companies operating in Mauritius face a test of integrity after the European Union included the island on its revised list of high risk jurisdiction for money laundering and terror funding.

However, about a fortnight ago, the European Commission (EC), the executive branch of the EU, put Mauritius on its list of high-risk countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks.

Signals that Mauritius could be blacklisted started earlier this year when the country was put on the FATF's "grey list" if they did not curb the mushrooming of terror funding and money laundering activities.

The EU's revised list for high risk countries considered developments that have taken place at the international level since 2018.

In the region, Kenya has attracted the largest number of investors: Data shows that Mauritian companies have invested over Ksh10 billion ($100 million) in the country, mostly in financial services and the sugar sector.