Mozambique has world’s highest money laundering and terrorist financing risk – Hanlon

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Mozambique has world’s highest money laundering and terrorist financing risk – Hanlon

7:50 CAT | 29 Aug 2019

Image: baselgovernance.org

Of 125 countries assessed, Mozambique has the highest risk of money laundering and terrorist financing, according to a report issued by the Basel Institute of Governance on 19 August. https://www.baselgovernance.org/basel-aml-index

“Poor border controls and weak government institutions expose the country to cross-border crimes related to drugs and human trafficking. Mozambique is also vulnerable to other predicate offences including corruption, car theft and smuggling, robbery, cash smuggling, illicit trade in precious metals and stones, customs fraud and goods smuggling. Mozambique has high risks associated with corruption, which is a pervasive problem in the country,” the report says. “The country also fares poorly on Financial Transparency and Standards“. The report also notes that Mozambique is “listed among the US INCSR list of major money laundering countries.”

Baselgovrank — *Image: baselgovernance.org*

The score is based on 15 indicators in five areas: Quality of Anti-money laundering Framework, Bribery and Corruption, Financial Transparency and Standards, Public Transparency and Accountability, and Legal and Political Risks. With Mozambique as number 1 (highest risk), the United States is ranked 72. This is higher risk than Brazil (76) and South Africa (84). Low risk countries include Portugal (107) and the United Kingdom (106).

By Joseph Hanlon

The Basel AML Index 2019 – released today – asks “Why so little progress – are #AML systems effective?” Falling rankings in our annual index of #MoneyLaundering and #TerroristFinancing risks show just how weak many countries’ AML systems are.https://t.co/e73l5U9ZJ4 pic.twitter.com/HrZI5lQYGs

— Basel Institute on Governance (@BaselInstitute) August 19, 2019