Decision on Mozambique’s removal from the FATF grey list may occur this week

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Decision on Mozambique’s removal from the FATF grey list may occur this week

12:20 CAT | 11 Jun 2025

FILE - For illustration purposes only. [File photo: FATF]

The results of the 40 recommendations made by the Financial Action Task Force (FATF) for Mozambique’s removal from the Grey List will be validated by the FATF Council of Ministers in a five-day event which began on Monday in Strasbourg, north-eastern France.

The spokesperson for Mozambique’s Council of Ministers, Inocêncio Impissa, announced the fact at a press briefing this Tuesday, adding that the country had received the results of the 7th FATF progress report on 14 May.

“These results will be validated at the plenary session of the Council of Ministers of the [International] Financial Action Bureau,” said Impissa, who is also Minister of State Administration and Civil Service.

He also said that, according to the information assessed by the government during yesterday’s session, there had been extremely significant progress, with only one indicator out of the approximately 40 recommended still missing.

“We believe that, with the efforts made, including with the bill now being submitted to the Assembly of the Republic, we have almost exhausted the range of recommendations that we should make,” he said.

Impissa was referring to the bill creating the Insurance and Pension Funds Supervisory Authority of Mozambique (ASFPM), an initiative aligned with Measure 17 of the Economic Acceleration Package, which deals with strengthening the supervision of social security funds and supplementary funds.

The law also aims to adopt FATF measures relating to insurance operators and pension fund management entities.

The instrument will also monitor the indicator on the alignment of the regulatory framework for insurance and pension funds with the principles issued by the International Association of Insurance Supervisors (IAIS) and the International Organization of Pension Supervisors (IOPS). The proposed law automatically extinguishes the Mozambique Insurance Supervisory Institute (ISSM), created in December 2010.

According to Impissa, the meeting of the FATF Council of Ministers in France will announce its final position on Mozambique’s removal from the grey list, because there has been progress and “there are challenges, which are naturally necessary for the continuity of this dynamic that has been observed over the last two years and three months”.

In June 2021, the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), a FATF-style regional body established in 1999, of which Mozambique is a member, adopted and published the ‘Mutual Evaluation of Mozambique’ report, in which it identified deficiencies in terms of compliance with FATF standards – weaknesses in the country’s legal, regulatory and institutional frameworks in terms of the effectiveness of the money laundering and terrorist financing regime.

This placed the country on the FATF ‘grey list’, which limits access to various international financing instruments.

Mozambique will host a meeting of the FATF High-Level Committee on 11 and 12 September, 2025.

Source: AIM Moçambique