Mozambique: Chapo claims near total consensus in dialogue
Mozambique: Parliament approves stricter money laundering laws
9:43 CAT | 11 Aug 2023
File photo: Lusa
Mozambique’s parliament approved on Thursday, by consensus and, in general, legal amendments that strengthen the prevention and fight against money laundering and terrorism.
At stake are proposals to revise the Law on Preventing and Combating Money Laundering and Terrorist Financing and the Law on Preventing and Combating Terrorism and Proliferation of Weapons of Mass Destruction.
The laws strengthen the authorities’ control over the operation and financing of non-governmental organisations (NGOs) and churches, financial entities, non-life insurers, the real estate sector, car sales and the sale of gems and precious stones.
Financial penalties are also increased for institutions that fail to comply with rules to prevent and combat money laundering and terrorist financing.
The text of the amendments also advocates simplified measures for the identification and verification of money laundering and terrorist financing risks by financial and non-financial entities.
The amendments also introduce specific financial sanctions for terrorism.
The proposals also advance the need to establish national risk assessment mechanisms for money laundering and terrorist financing.
In justifying the relevance of the two laws, the minister of justice, constitutional and religious affairs, Helena Kida, pointed out the importance of the approved law for the country’s exit from the grey list of the Financial Action Task Force (FATF), an instrument that measures the country’s ability to combat that type of crime.
“The consequences could” result in banks reducing or cutting their relationships with clients residing in high-risk jurisdictions, seeing investors withdraw from Mozambique, reduced payment flows between the country and abroad and a decline in capital flows.
Helena Kida stressed that the approval of the laws is part of the two-year “action plan” agreed with the FATF for the “removal of Mozambique from the grey list”.
The two pieces of legislation will still be debated and approved in the speciality at a plenary meeting scheduled for this Friday.
Source: Lusa
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