Financial Crime World

Mozambique’s Financial Institutions Face Scrutiny Over Anti-Money Laundering Policies

A recent report has shed light on the anti-money laundering (AML) policies in Mozambique, highlighting areas of compliance and non-compliance with international standards.

Compliance and Non-Compliance

According to the report, Mozambique’s financial sector has made significant strides in implementing the technical requirements of the Financial Action Task Force (FATF) Recommendations. However, there are still several areas where improvements are needed.

  • Risk Assessment and Application of Risk-Based Approach: Mozambique was rated “largely compliant” by FATF.
  • National Cooperation and Coordination: The country scored well on national cooperation and coordination, as well as its laws related to money laundering and terrorist financing.
  • Confiscation and Provisional Measures: However, Mozambique’s financial institutions were found to be only “partially compliant”.
  • Targeted Financial Sanctions: Additionally, the country’s targeted financial sanctions related to terrorism and terrorist financing were found to be non-compliant.

Concerns Over Customer Due Diligence and Record Keeping

The report also highlighted concerns over:

  • Customer Due Diligence: Mozambique was rated “partially compliant” in this area.
  • Record Keeping: The country’s record keeping was also found to be “partially compliant”.
  • Reliance on Third Parties: Additionally, Mozambique’s reliance on third parties was found to be non-compliant.

Progress and Challenges

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Despite these challenges, Mozambique has made significant progress in implementing AML policies and procedures. The country’s financial intelligence unit and law enforcement agencies have also been praised for their efforts to combat money laundering and terrorist financing.

Conclusion

The report’s findings are likely to be of interest to international organizations, governments, and financial institutions operating in Mozambique. As the country continues to develop its financial sector, it is essential that AML policies and procedures are strengthened to prevent financial crimes and protect the integrity of the financial system.