The recent wave of international terrorism and the increased concerns about drug activities have led to an increased focus on money laundering and its regulation. In fact, money laundering is not a recent phenomenon and has occupied the minds of policymakers and regulators for many centuries. In his book Lord of the Rim, historian Sterling Seagrave describes how, more than three thousand years ago, merchants in China concealed their wealth by moving cash outside of their own jurisdiction, trading at inflated prices or converting money into movable assets in case they might be banished by their rulers. Although mechanisms and reasons have changed, all these techniques are still used by current launderers. (IDB 2007)

Critically discuss the above by reflecting on the issue of Money Laundering in Mauritius and pieces of legislation, case law, if any, and any possible reforms to supplement your answer. (100 Marks)