Mozambique: Emose fined 10 mn meticais – Notícias

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Mozambique: Emose fined 10 mn meticais – Notícias

2:18 CAT | 19 Jul 2024

File photo: Notícias

The Institute of Insurance Supervision has imposed a fine of 10 million meticais [around US$156,633 at current exchange rates] on the Mozambican Insurance Company (Emose), alleging violation of the law that establishes measures to prevent and combat money laundering and terrorist financing.

A note from the Insurance Supervision Institute (ISSM) made public yesterday indicates that EMOSE committed offences subject to penalties, in accordance with Law 14/2023, of 28 August, which establishes the legal regime on the subject in question.

EMOSE is fined for the violation of the duties to assess risk; to identify politically exposed people; to identify the beneficial and controlling beneficiaries. The company will have to pay two million meticais for each irregularity.

Compelled by legislation, financial institutions and designated non-financial entities are obliged, when carrying out their respective activities, to fulfil their duties in relation to their former, current and potential customers.

Therefore, with regard to the duty to assess risks, institutions must adopt appropriate measures to identify, assess, understand and mitigate the risks of money laundering, financing of terrorism and financing of the proliferation of weapons of mass destruction to which are exposed at the level of customers, transactions and institutions, taking into account the factors listed in the law itself.

Regarding control, the aforementioned institutions are obliged to adopt policies, internal control procedures, verification mechanisms and procedures to ensure hiring criteria for their employees, as well as internal audit regulations.

Still on control, the law requires the appointment of a Suspicious Operations Communication officer who must report to the Mozambican Financial Intelligence Office (GIFIM), an entity with the responsibility for tracking information on suspicious economic and financial transactions.

Source: Notícias