Global Efforts Intensify to Combat Terrorism and Weapons Proliferation

In a bid to combat terrorism and weapons proliferation, financial institutions in Mozambique have been directed to freeze economic assets and resources within 24 hours of receiving notice from the country’s financial intelligence unit, GIFiM.

Strengthening Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Framework

As part of a broader effort by Mozambique’s central bank, Banco de Moçambique, to strengthen its AML/CFT framework, the bank has conducted a sectoral risk assessment of money laundering, terrorism financing, and proliferation of weapons of mass destruction. This assessment identified areas that require attention.

Reporting Suspicious Transactions

According to Article 38-40 of the Law establishing the legal regime and measures to prevent and combat the use of the financial system and non-financial entities for the purposes of money laundering, terrorist financing, and proliferation of weapons of mass destruction:

• All financial and non-financial institutions are required to proactively report any suspicious transactions to GIFiM.
• Risk and compliance managers, suspicious transaction reporting officers, and the Mozambican Banking Association have been urged to be aware of the list of designated individuals and groups subject to asset freezing measures.
• They are required to report any information on these entities within 24 hours of receiving notice from GIFiM.

Biannual Risk Reporting

The bank has emphasized the importance of biannual risk reporting by financial institutions, which is expected to provide a more comprehensive picture of money laundering, terrorism financing, and proliferation of weapons of mass destruction risks in Mozambique. The reports will help authorities identify high-risk areas and take targeted measures to mitigate these risks.

Vigilance Against Proliferation Financing

In a recent meeting with supervised financial institutions, the Banco de Moçambique highlighted the need for increased vigilance against proliferation financing, which it described as a major threat to global security. The bank has also reiterated its commitment to ensuring compliance with AML/CFT regulations by all obliged institutions under its supervision.

Significance of the Move

The move is seen as a significant step towards strengthening Mozambique’s financial system and preventing the misuse of financial institutions for illicit activities. It is expected to improve the country’s international reputation and enhance cooperation with other countries in the fight against terrorism and weapons proliferation.