Mauritius joins Pakistan on FATF's 'grey list'; questions over FPI inflows

About 80 per cent of FPIs from Mauritius are already classified as Category-II by Sebi. The grey list tag dashes any hopes of these funds moving to Category-I.

Mauritius has joined Pakistan on the “grey list” of the Financial Action Task Force (FATF), an inter-governmental body which sets anti-money laundering standards. The development is a body blow to the country, which has been trying hard to shed its image as a quasi-tax haven in the recent past.

The move also puts a question mark on the existing, as well as new investments flowing into India from the country. Mauritius is the second-largest source of foreign portfolio investor (FPI) flows into India, after the US, and has remained so despite the amendment to the tax treaties between the two