Mozambique: World Bank warns of ‘grey list’ difficulties in accessing markets – Lusa

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Mozambique: World Bank warns of ‘grey list’ difficulties in accessing markets – Lusa

3:28 CAT | 28 Feb 2023

File photo: Rádio Moçambique

The World Bank warned the Mozambican authorities on Monday of difficulties in accessing markets due to the country’s placement on the international “grey list” of risk of money laundering and terrorism financing.

“Getting off the list is necessary to promote access to international financial markets, continue to attract foreign investment and participate in international trade,” said Julian Casal, World Bank financial sector specialist.

Casal was speaking at the opening of a seminar for magistrates in Maputo.

The situation could damage the country’s reputation as a reliable and trustworthy partner, causing long-term implications for economic growth and development, he added.

Casal called on the authorities to promote a stable and transparent financial system and a greater commitment to international conventions on combating money laundering and terrorism financing.

Addressing the magistrates present at the training session that began today, that World Bank official urged judicial operators to “enforce and interpret the country’s laws and regulations related to anti-money laundering and combating the financing of terrorism”.

“Investigating and prosecuting financial crime cases and imposing appropriate penalties on those found guilty and interpreting laws and regulations related to money laundering and countering the financing of terrorism” are also fundamental actions, he stressed.

On the other hand, he continued, it is necessary for the country to adopt new laws and regulations to be more effective in the fight against these types of crimes.

Mozambique’s minister of economy and finance, Max Tonela, expressed the government’s determination to undertake actions aimed at removing Mozambique from the grey list.

“We are committed to resolving the shortcomings identified and improving our contribution to strengthening the international financial system,” Tonela said.

In that sense, he went on, the authorities are working for the country to be removed from that list within 24 months, which involves implementing a strategy agreed upon with the Financial Action Task Force (FATF), which manages the list.

According to the minister of economy and finance, it is also essential to strengthen international cooperation to combat money laundering and financing of terrorism.

He also advanced the imperative of creating an executive multi-sector coordination committee involving relevant State institutions.

“It is important to note that to be removed from this list, Mozambique must demonstrate significant progress through evidence, and the judicial system plays a critical role in this framework,” stressed Max Tonela.

Mozambique was placed on the FATF “grey list” in October 2022 after institutional weaknesses were detected in the mechanisms to combat money laundering and terrorism financing.

Source: Lusa