Financial Crime World

Banco de Moçambique Cracks Down on Financial Crimes: AML/CFTP Powers and Institutional Duties

The Banco de Moçambique, as Mozambique’s central bank, is the primary authority responsible for:

  • Supervising Anti-Money Laundering (AML) and Countering the Financing of Terrorism and Proliferation (CFTP) activities
  • Regulating credit institutions, financial companies, and the Mozambique Stock Exchange

Banco de Moçambique’s Role and Responsibilities

As the leading financial watchdog, the Banco de Moçambique ensures that all supervised institutions comply with AML/CFTP legislation. Their duties include:

  1. Assessing ownership, control, or representation in a supervised institution’s board, management, or business
  2. Ensuring regulatory compliance and conducting on-site audits
  3. Developing and issuing guidelines promoting AML/CFTP compliance
  4. Initiating misdemeanor proceedings and imposing sanctions
  5. Sharing information and cooperating with other competent authorities during investigations
  6. Developing and implementing standards for reporting suspicious transactions
  7. Ensuring adherence to AML/CFTP legislation by foreign branches and their subsidiaries
  8. Promptly reporting suspicious activities to the Mozambique Financial Information Office (GIFiM)
  9. Fostering effective cooperation with relevant authorities
  10. Keeping statistics on imposed sanctions and violations

Understanding Money Laundering, Terrorism Financing, and Proliferation Financing

Three primary financial crimes that the banking sector must mitigate are:

  1. Money laundering - hiding, concealing, or transferring funds obtained from an unlawful source or possessing, using, or acquiring known illicit proceeds
  2. Terrorism financing - knowingly collecting, providing, or retaining funds for terrorism or a terrorist organization’s actions
  3. Proliferation financing - the financing of the proliferation of weapons of mass destruction, intending or knowing that funds may be used for these purposes

Credit Institutions and Financial Companies’ Roles in AML/CFTP Efforts

Credit institutions and financial companies play a vital role in AML/CFTP efforts. To ensure effectiveness, they must adhere to essential duties, including:

  1. Carrying out risk assessments
  2. Properly identifying customers
  3. Examining transactions
  4. Reporting suspicious activities
  5. Cooperating with authorities

Enhancing Industry Understanding and Implementing Measures

The Banco de Moçambique has initiated a sectoral risk assessment to:

  1. Enhance the industry’s understanding of financial crimes
  2. Help Mozambican financial institutions implement appropriate measures against money laundering, terrorism financing, and proliferation of weapons of mass destruction.