Financial Crime World

Mozambique Struggles with Compliance as AMLD Regulations Take Center Stage

Introduction

Mozambique has implemented Anti-Money Laundering (AML) regulations to prevent financial crimes and maintain transparency in its financial sector. The primary legislation governing AML in Mozambique is the Money Laundering (Prohibition) Law nº14/2013 of 12 August.

Regulatory Framework

The Central Bank of Mozambique (CBN), Gabinete de Informação Financeira de Moçambique (GIFM), and other regulatory bodies have enforced these regulations. In addition to AML regulations, Mozambique has data protection laws in place, including:

  • The Civil Code (Decree-Law no. 47344)
  • The Penal Code (Law no. 24/2019)
  • The Labour Law (Law no. 23/2007, of August 1)
  • The Electronic Transactions Law (Law no. 3/2017)

These laws require institutions to obtain users’ consent before processing and transferring personal data, and also grant users the right to erasure of their personal data upon request.

Compliance Challenges

Despite these regulations in place, many financial institutions and organizations in Mozambique are still struggling to comply with AMLD requirements, leading to a high risk of non-compliance. This challenge can be addressed by introducing digital solutions that enable accurate verification of users’ identities.

Smile ID’s KYC Solution

Smile ID has introduced its digital Know Your Customer (KYC) solution, which uses advanced facial recognition technology and machine learning algorithms to verify users’ identities using a range of identification documents, including:

  • Mozambique National Identity Card
  • Voter’s ID
  • Passport
  • Driver’s License

The solution has achieved 99.8% recognition accuracy for faces of all skin tones and is compatible with any device.

Benefits of Smile ID’s KYC Solution

Verifying users with ID documents and biometric face matching is one of the most reliable ways to determine a user’s true identity. Smile ID’s solution can:

  • Accurately transcribe document text with 96% accuracy
  • Check for accurate format
  • Identify tampered and forged documents
  • Verify security features

Conclusion

Mozambique’s financial sector faces significant challenges in complying with AMLD regulations, which has led to a high risk of non-compliance. However, the introduction of Smile ID’s digital KYC solution offers a reliable and efficient way for financial institutions and organizations to verify users’ identities and stay compliant with regulatory requirements.