Financial Crime World

Mozambique’s Financial Sector Takes Aim at Terrorism and Weapons of Mass Destruction

Combating the Spread of Terror and WMDs: A Comprehensive Framework

In a bid to combat the spread of terrorism and weapons of mass destruction (WMDs), Mozambique’s financial sector has launched a comprehensive framework for countering and suppressing these threats. This initiative, which aligns with international standards, requires all financial and non-financial institutions to freeze economic assets and resources within 24 hours upon notice.

Sectoral Risk Assessment and Mitigation Measures

The Banco de Moçambique, the country’s central bank and financial regulator, has taken the lead in implementing this framework. As part of its efforts, the bank recently conducted a sectoral risk assessment of money laundering, terrorism financing, and proliferation of WMDs. The assessment identified several areas that require attention and has led to a series of measures aimed at mitigating these risks.

Key Measures

  • Suspicious Transaction Reporting: All financial institutions are required to report suspicious transactions electronically within 24 hours, including those linked to terrorism or the financing of WMDs.
  • Biannual Risk Reporting: Institutions must submit biannual reports on customer accounts and transactions that may pose a risk of money laundering, terrorism financing, or proliferation of WMDs.
  • Guidelines for Anti-Money Laundering and Countering Financing of Terrorism and Proliferation: The Banco de Moçambique has issued guidelines providing clear instructions on how institutions should conduct due diligence and monitor customer transactions to prevent these illegal activities.

Awareness Campaign

The bank has also launched a campaign to raise awareness among financial institutions and other stakeholders about the risks associated with terrorism and WMDs. The campaign aims to educate institutions on the consequences of non-compliance with legal obligations and provides guidance on identifying red flags of sanctions evasion.

The Mozambican government has enacted laws and regulations to combat terrorism and proliferation, including Law No. 14/2023, which established a legal regime for preventing and combating the use of financial systems and non-financial entities for money laundering, terrorist financing, and proliferation of WMDs.

International Cooperation

Mozambique’s financial sector is working closely with international organizations, such as the Financial Action Task Force (FATF), to implement best practices in combating terrorism and proliferation. The FATF has issued guidelines on counter-proliferation financing, which Mozambique’s financial sector is following closely.

Conclusion

In conclusion, Mozambique’s financial sector is taking a proactive approach to combatting terrorism and WMDs. By implementing a comprehensive framework for countering and suppressing these threats, the country is demonstrating its commitment to international efforts to prevent these illegal activities.