Mozambique: Country is high risk in ability to combat money laundering – EU

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Mozambique: Country is high risk in ability to combat money laundering – EU

7:32 CAT | 21 Dec 2022

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

The European Commission on Tuesday included Mozambique on the list of third country jurisdictions considered to be high risk due to strategic deficiencies in their regimes to combat money laundering and terrorist financing.

In a statement, the EU executive announced that this Tuesday it has updated the list, removing three jurisdictions, namely Nicaragua, Pakistan and Zimbabwe, but adding five: Democratic Republic of Congo, Gibraltar, Mozambique, Tanzania and United Arab Emirates.

“There is a need to continue to identify and list high-risk third countries with strategic deficiencies in their national anti-money laundering and terrorist financing frameworks, with a view to working closely with them to prevent money laundering and terrorist financing risks. This will help the countries involved in their efforts and protect the EU’s financial system and the proper functioning of our single market,” commented Commissioner for financial services, financial stability and capital markets union, Mairead McGuinness.

The EU’s list takes into account information provided by the Financial Action Task Force (FATF) and changes made by the FATF during 2022 to its list of countries under enhanced surveillance.

The Commission indicates that it is “closely involved in monitoring the progress made by the countries and territories listed and works closely with them to reduce delays in the fight against money laundering and terrorist financing and to help them fully implement their respective action plans as agreed with the FATF”.

European financial institutions and other entities are required to apply enhanced due diligence in transactions involving third country jurisdictions placed on this high-risk list.

Source: Lusa