Challenges in money laundering investigations keep Mozambique on FATF grey list – NGO

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Challenges in money laundering investigations keep Mozambique on FATF grey list – NGO

4:09 CAT | 21 Jun 2023

File photo: Lusa

Mozambique’s Centro de Integridade Pública(CIP) on Tuesday pointed to the alleged inability to investigate cases of money laundering as the main obstacles in Mozambique’s efforts to get off the “grey list” of the Financial Action Task Force (FATF).

“It is the competence of the Public Prosecutor’s Office, as the holder of the criminal action, to investigate the acts suspected of constituting money laundering crimes. However, this body has been experiencing difficulties in terms of instruction and investigation of this legal type of crime, mainly in technical terms,” said the CIP, in a document that assesses Mozambique’s efforts to get off the “grey list” of the FATF.

Mozambique was placed on the FATF’s “grey list” in October 2022 after institutional weaknesses were detected in mechanisms to combat money laundering and terrorism financing.

According to the non-governmental organisation, out of a total of 112 cases investigated between 2014 and 2023, only 42 cases had indictments, which corresponds to 37.5%.

“These figures show that there are deficiencies with regard to the [criminal procedure] instruction of registered money laundering cases, which is reflected in the low number of cases that end with indictment. It should also be noted that during the period analysed there were 36 cases that were abstained, the reasons for which are not mentioned”, .the NGO said.

While admitting the existence of legal reforms to take the country out of the “grey list”, the NGO believes that there are still weaknesses in the application of laws.

“Without the investigation and accountability component, the country will hardly get off the grey list in two years, which is the time the government has proposed to take the country off the list,” reads the NGO’s document.

“Getting off the list is necessary to promote access to international financial markets, continue to attract foreign investment and participate in international trade,” Julian Casal, the World Bank’s financial sector specialist, said at the time.

Branqueamento de capitais e financiamento ao terrorismo: Análise crítica dos progressos de Moçambique para sair da lista cinzenta

Leia o artigo na íntegra: https://t.co/4bJhWQaszq

— CIP-Mozambique (@CIPMoz) June 19, 2023