Financial Crime World

Financial Crime Case Studies in Mozambique Get Boost from Cross-Agency Training Workshop

In a move aimed at enhancing the skills of anti-corruption practitioners in Mozambique, an intensive cross-agency training workshop was held recently in Maputo. The workshop, organized by the International Centre for Asset Recovery (ICAR), focused on investigating offshore structures used to hide and launder money and requesting information and evidence from abroad.

Workshop Objectives

The five-day workshop brought together public prosecutors alongside members of Mozambique’s:

  • Asset Recovery Office
  • Financial Intelligence Unit
  • Central and Provincial Anti-Corruption Offices
  • National Criminal Investigation Service

Building on two foundational training programs held in 2019 on financial investigations and asset recovery, the workshop delved into two challenging areas of international asset recovery:

Investigating Financial Flows through Offshore Corporate Structures such as Shell Companies and Trusts

Hands-on Training

Participants worked in small groups to “investigate” a complex transnational corruption and money laundering case, allowing them to put their new skills and knowledge into practice immediately. For example, they had to unravel the beneficial ownership of assets held in an offshore shell company to link criminal activity with the perpetrators and the proceeds of crime.

Tackling Transnational Corruption and Money Laundering Cases

Both aspects of the training - offshore structures and MLA - are essential in tackling transnational corruption and money laundering cases such as Mozambique’s ongoing hidden debt scandal, which involves billions of dollars of undeclared loans and undue payments to foreign and national citizens, including high-ranking officials. The case has plunged Mozambique into a financial crisis and spilled over into multiple jurisdictions, requiring extensive international cooperation.

Challenges in Obtaining International Cooperation

According to Amélia Machava, Director of Mozambique’s Asset Recovery Office, Mozambique is not the only country to face challenges in obtaining international cooperation through MLA, citing common obstacles such as:

  • Language and communication barriers
  • Differences in legal systems
  • Difficulties in identifying relevant contact persons
  • Delays in obtaining a response
  • Claims of a “fishing expedition” where the information requested is not fully clear

Training Impact

Participants praised the training, saying it had “opened up more horizons” in terms of investigating offshore companies and trust funds, which are unknown under Mozambican law. Others commended the usefulness of understanding not only how MLA works but also other “rapid non-formal ways to collect data to substantiate the MLA request.”