Mozambique: PGR impounds hotel building in ‘stop money laundering’ operation

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Mozambique: PGR impounds hotel building in ‘stop money laundering’ operation

5:35 CAT | 19 Aug 2024

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

The ‘Residencial Fênix’ building in Nampula city was impounded by the Attorney General’s Office (PGR) on Sunday (18-08) as part of the ‘Stop Money Laundering’ operation.

The hotel on Avenida FPLM will continue to operate, with a change in the management regime, with rent payments now made directly to the Mozambican state, from now on custodian of the property.

The ‘Stop Money Laundering’ operation extends to several other real estate assets in Maputo and Nacala, also impounded due to suspicions of involvement in money laundering activities. The properties seized under the same regime include properties located on Avenida 25 de Setembro and Avenida Julius Nyerere in Maputo, and the ‘Su Kasa’ restaurant in the Bagamoyo neighbourhood.

In Nacala-Porto, the PGR uncovered the use of false identity cards in a shell company used to open other fictitious companies with the aim of facilitating money laundering. Around 40 vehicles were also seized during the operation.

The PGR clarified that all companies, including commercial banks, service providers, travel agencies and other establishments, which operate or lease properties covered by the operation, will continue to operate normally. The main change concerns rent payments, which must now be made directly to the state by the operators of businesses operating in the impounded properties.

These actions are part of a broader response by the Mozambican government to the recommendations of the Financial Action Task Force (FATF) and effectively combat money laundering in the country, a problem that has already resulted in the transfer of more than US$330 million in laundered money out of the coutry.

Source: Integrity