Title: Banco de Moçambique Cracks Down on Financial Crimes: AML/CFT and Proliferation Regulations
Banco de Moçambique’s Role in Financial Security and Compliance
In a proactive step towards financial security and international compliance, Banco de Moçambique (the Central Bank of Mozambique) is strengthening its role as the supervisory authority for Anti-Money Laundering (AML) and Countering the Financing of Terrorism and Weapons of Mass Destruction (CFT/CP) activities.
As the financial sector’s regulatory body, the Banco de Moçambique ensures all credit institutions, financial companies, and stock exchange members adhere to the country’s AML/CFT and proliferation financing legislation (AFTPP).
Key Responsibilities of Banco de Moçambique
- Enforcing legislation and promoting compliance: The Banco de Moçambique conducts on-site audits and provides guidelines to maintain regulatory oversight and prevent financial crimes.
- Initiating misdemeanor proceedings and applying sanctions: The bank takes action against financial institutions that fail to comply with regulations.
- Cooperating with other competent authorities and sharing information: The Banco de Moçambique collaborates with international organizations and other authorities to maintain a secure financial environment.
- Developing standards for suspicious transactions reporting and branch compliance: Establishing procedures to ensure effective cross-authority cooperation.
- Keeping statistics on violations and sanctions: Ensuring a transparent reporting system.
Financial Institutions’ Duties
Under AFTPP regulations, financial institutions have several duties to uphold:
- Risk assessment: Evaluating money laundering, terrorism financing, and proliferation risks.
- Customer identification, verification, and due diligence: Ensuring customers and transactions are legitimate.
- Examining potential money laundering or suspicious transactions: Taking appropriate actions when necessary.
- Collaborating with competent authorities and maintaining confidentiality: Sharing information and keeping sensitive information secure.
- Employee training: Keeping staff informed and updated on regulations and best practices.
Specially Designated Nationals List
The Banco de Moçambique advises risk and compliance managers, suspicious transaction reporting officers, and the Mozambican Banking Association to refer to the Specially Designated Nationals List when assessing risks. Institutions are required by Articles 25 and 26 of Law No. 15/2023 to report any suspected customers, funds, or assets related to the list to the Mozambique Financial Information Office (GIFiM) within 24 hours.
Suspicious Transaction Reporting
Financial institutions must electronically report any suspicious transactions to the GIFiM following provided procedures.
Biannual Risk Reporting
To enable effective risk-based supervision, financial institutions submit customer account and transaction data, risk assessments, and system information to the Banco de Moçambique semi-annually.
Recent Developments
The sectoral risk assessment of money laundering, terrorism financing, and proliferation of weapons of mass destruction was recently completed by the Banco de Moçambique, with preliminary findings presented to supervised institutions in March 2024. Additionally, recent legislative amendments have strengthened the AFTPP enforcement framework.
Resources and Contact Information
Legislation, reports, policies, and other useful links related to AML, CFT, and proliferation regulations are available for the public’s reference and can be accessed through various Mozambican authorities and international organizations.
For any inquiries and comments regarding the provided information, please contact: DSP_AML_CFT@bancomoc.mz