Mozambique readies new legislation to combat money laundering, exit FATF grey list

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Mozambique readies new legislation to combat money laundering, exit FATF grey list

2:33 CAT | 07 Feb 2023

Photo: O País

The Mozambican government intends to see the country removed from the Financial Action Task Force’s (FATF) ‘grey list’, and for this purpose will bring in legislation that responds to the requirements of the institution, according to the permanent secretary of the Ministry of Justice, Constitutional and Religious Affairs Manuel Malunga.

Combating crimes of money laundering and financing of terrorism still represents a challenge in Mozambique, which, last October, was placed on a gray list.

With a view to seeking strategies to reverse the scenario and respond to the requirements of the International Financial Action Group, the Ministry of Justice, Constitutional and Religious Affairs this Monday brought together in Maputo various state institutions and cooperation partners.

“In addition to harming the economy, the situation puts us in an uncomfortable situation, because we have not been able to adjust to international standards for combating money laundering and terrorist financing,” Malunga explained.

Speaking on the side-lines of the meeting, Malunga said that specific legislation was to be created. “We are on the grey list precisely because we do not have an effective legal regime. With the approval of this regime, we will be able to move from the grey list to another, because it is not comfortable, we cannot control the movement of capital.”

The three-day meeting is also being attended by the State Financial Intelligence Office (GIFIM) and by the Bank of Mozambique, in addition to the Ministry of Justice.

READ: DRC, Mozambique and Tanzania placed under increased monitoring by FATF

Global watchdog’s gray listing threat hangs over Mozambique – Bloomberg

The FATF webpage section on Mozambique, under the heading ‘Jurisdictions under Increased Monitoring – 21 October, 2022’, reads as follows.

In October 2022, Mozambique made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime. Since the adoption of its MER in April 2021, Mozambique has made progress on some of the MER’s recommended actions to improve its system including by finalising its NRA and strengthening its asset confiscation efforts. Mozambique will work to implement its FATF action plan 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.

Source: O País / FATF