Grey List: Mozambique hosts high-level meeting of Technical Assistance Committee

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Grey List: Mozambique hosts high-level meeting of Technical Assistance Committee

9:02 CAT | 14 Jul 2023

Photo: Ministério da Economia e Finanças de Moçambique

Minister of Economy and Finance, Ernesto Max Tonela, met international partners on Wednesday, 12 July, to present the main updates on the progress of Mozambique’s removal from the Financial Action Task Force (FATF) ‘grey list’.

The meeting’s goal was the evaluation and validation of the progress report by the FATF Plenary meeting held in Paris in June 23, which assessed the steps undertaken by Mozambique.

The meeting was attended by all the government sectors involved in the process of removing Mozambique from the grey list, namely the Attorney General’s Office (PGR), the Supreme Court (focusing on support for computerisation and interoperability of future systems and training), the Kimberly Unit (dissemination of legislation and training), the Criminal Investigation Police (SERNIC – focusing on training and support for the means of investigation and coordination in training), Customs (support for the acquisition of IT tools and effective mastery of existing legislation), the Bank of Mozambique and the Insurance Supervision Institute (practical training), as well as external partners and funders such as the European Union, IMF, World Bank , the Portuguese and Swiss embassies, the International Centre for Asset Recovery (ICAR) and the Basel Institute on Governance.

READ: https://clubofmozambique.com/news/mozambique-submits-first-assessment-report-to-exit-the-grey-list-235133/

The European Union ambassador, Antonino Maggiore, praised the work done, highlighting the dedication, high level of commitment and coordination of the government, while recognising that there are still many challenges ahead.

Luís Cezerilo, deputy director-general of Mozambique’s Financial Intelligence Office (GIFiM), presented the developments and subsequent steps to be taken by the relevant sectors according to the FATF calendar, until the next meeting with the organisation, scheduled for 3 October.

Cezerilo also presented a document management system developed in-house to increase efficiency and allow more effective monitoring of results.

The Attorney General’s Office (PGR) presented as a major challenge the lack of financial resources to complete IT platforms that will answer statistical questions.

The Kimberley Unit expressed funding concerns in the process of disseminating guidelines at national level and in the actual training and recruitment of new technicians to have the capacity to carry this out.

On the part of SERNIC, the work in relation to money laundering already carried out was highlighted, and the coordination of comprehensive technical training for agents at national level was stressed.

For its part, the Bank of Mozambique reinforced the need for technical training in the sectors of greatest risk already identified, highlighting the need for support in the areas of specific training.

Also in the financial area, the Insurance Supervision Institute pointed out the need for greater dissemination in order to meet the effectiveness requirements set by the FATF.

The announcement by the Financial Action Task Force to place Mozambique on the grey list was made at the end of a plenary meeting in Paris on 21 October 2022, which brought together delegates from the 200 countries and jurisdictions that comprise up this international watchdog on illegal and criminal activities.

The Financial Action Task Force (FATF) has given Mozambique just two years to improve its framework for preventing and combating money laundering and terrorist financing, starting in October 2022. If it fails, it will be blocked from international financial transactions.

Since then, the government has set up the Executive Committee for the Removal of Mozambique from the Grey List, a register of the countries most prone to money laundering and terrorist financing.

The next FATF meeting to assess Mozambique’s progress is scheduled for 23 October this year in Paris.

FATF’s latest update and recommendations

The FATF’s update on Mozambique as a jurisdiction under increased monitoring, dated June 23 2023, reads as follows.

Since October 2022, when Mozambique made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime, Mozambique has taken steps towards improving its AML/CFT regime, including by addressing the deficiencies identified in Recommendation 10. Mozambique should continue to work on implementing its action plan to address its strategic deficiencies, including by:

(1) ensuring cooperation and coordination amongst relevant authorities to implement risk-based AML/CFT strategies and policies;

(2) conducting training for all LEAs on mutual legal assistance to enhance the gathering of evidence or seizure/confiscation of proceeds of crime;

(3) providing adequate financial and human resources to supervisors, developing and implementing a risk-based supervision plan;

(4) providing adequate resources to the authorities to commence the collection of adequate, accurate and up-to-date beneficial ownership information of legal persons;

(5) increasing the human resources of the FIU as well as increasing financial intelligence sent to authorities;

(6) demonstrating LEAs capability to effectively investigate ML/TF cases using financial intelligence;

(7) conducting a comprehensive TF Risk Assessment and begin implementing a comprehensive national CFT strategy;

(8) increasing awareness on TF and PF-related TFS; and

(9) carrying out the TF risk assessment for NPOs in line with the FATF Standards and using it as a basis to develop an outreach plan.

The following countries had their progress reviewed by the FATF since February 2023: Albania, Barbados, Burkina Faso, Cayman Islands, Democratic Republic of Congo, Gibraltar, Jamaica, Jordan, Mali, Mozambique, Panama, Philippines, Senegal, South Africa, South Sudan, Turkiy, UAE, and Uganda.

Haiti, Nigeria, Syria, Tanzania and Yemen chose to defer reporting. The statements previously issued for those jurisdictions are included below, but it may not necessarily reflect the most recent status of the jurisdictions’ AML/CFT regimes. Following review, the FATF now also identifies Cameroon, Croatia and Vietnam.

Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring. This list is often externally referred to as the “grey list”.

Source: Diario Economico / FATF