Basel AML Index: Combating money laundering has improved in Mozambique, but risk remains high – @Verdade

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Basel AML Index: Combating money laundering has improved in Mozambique, but risk remains high – @Verdade

3:05 CAT | 28 Jul 2020

The Sub-Saharan African region has the second-highest overall risk score in the Basel AML Index and scores significantly below average across all categories, similar to South Asia. To add to this, the risk scores are likely to rise even higher after more countries are evaluated with the FATF fourth-round methodology, which evaluates the effectiveness of the systems and generally causes countries to fall down the ranking. A comprehensive and coordinated set of reforms is required to reduce the region’s risk and increase its attractiveness for investors. [Image Basel AML Index 2020]

Mozambique is no longer the worst country in the world regarding money laundering and terrorist financing, but the Basel Institute on Governance indicates that the risk here remains very high. [You may access the full Basel AML Index: 9th Public Edition Ranking money laundering and terrorist financing risks around the world HERE]

In 2019, Mozambique topped the Basel Institute on Governance Anti-Money Laundering (AML) Index with a score of 8.22 out of a maximum of 10, among 125 countries assessed in terms of the quality of structures to monitor and prevent money laundering, financing terrorism, bribery and corruption, compliance with financial transparency standards, public transparency and accountability, and legal and political risks.

In the 2020 AML Index made public last Thursday (25), Mozambique obtained a score of 7.888, improving five positions in a list of 141 assessed countries, ahead of Afghanistan, Haiti, Myanmar and Laos.

Among the 18 African countries assessed, Mozambique remains the worst in a regional index led by South Africa, Ghana and Botswana.

For the Switzerland-based Institute, the main problem in Mozambique is the supervisory bodies and the weak implementation of measures designed to safeguard the financial system.

The institution places Mozambique among the many countries that could have a strong and vigorous supervisory system, “but in practice, they are not working, or the countries are not making them work”.

@Verdade has learned that one of the weaknesses identified in the Mozambican financial system is the poor identification of Politically Exposed Persons, their business and transactions.

Published by the Basel Institute on Governance since 2012, the index provides risk scores based on data from 16 publicly available sources, including the Financial Action Task Force (FATF), Transparency International, the World Bank and the World Economic Forum.

Source: A Verdade