Mozambique loses millions of dollars to money laundering

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Mozambique loses millions of dollars to money laundering

3:12 CAT | 18 Apr 2017

The fraudulent use of Mozambique’s financial system to conceal or disguise capital of illicit origin cost the Mozambican state an estimated 1.887 billion meticais in 2016, according to the Public Attorney’s Office (PGR).

In a report to be presented to the Assembly of the Republic, the PGR informs suspected fraudulent use of the financial system includes situations such as laundering the proceeds of criminal activity such as the misappropriation of state funds, abductions, human trafficking, trade in narcotic drugs and psychotropic substances and parts of protected species.

The PGR also argues that deprivation of profit derived from criminal activity has a greater dissuasive power than restricting the freedom of offenders and therefore suggests the creation of an institution for the recovery of criminal proceeds as recommended by the conventions and positive experiences of several countries.

“We continue to face fraudulent schemes of circulation of large sums of money outside of the financial system, fuelling an informal circuit at home and abroad. Given that large amounts of money are involved in this type of crime, the PGR is working with the Bank of Mozambique to reinforce measures to control currency,” the PGR document reads.

The document, according to the newspaper Notícias, says that the PGR estimates that 10.5 percent of people trafficked in Mozambique end up being sexually exploited, and 89.5 percent experiencing organ harvesting or forced labour.

Source: Folha de Maputo