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Mozambique Strengthens Legal Framework to Combat Terrorism and WMD Proliferation

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The Banco de Moçambique has announced a series of measures to strengthen the legal framework for combating terrorism and the proliferation of weapons of mass destruction (WMDs).

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 WMD proliferation:

  • All financial and non-financial institutions are required to freeze economic assets and resources within 24 hours upon notice.
  • Risk and compliance managers, suspicious transaction reporting officers, and the Mozambican Banking Association are urged to be aware of the list of individuals and groups designated by the United Nations Sanctions Committee (terrorism and its financing) and report any information on customers to the Governance Fund for International Migration (GIFiM).

Compliance Requirements

  • Financial institutions are required to conduct risk-based supervision of money laundering, terrorism financing, and WMD proliferation.
  • Institutions must report suspicious transactions electronically in compliance with GIFiM procedures.

Sectoral Risk Assessment

The Banco de Moçambique has initiated a sectoral risk assessment of money laundering, terrorism financing, and WMD proliferation as recommended by the Financial Action Task Force (FATF).

  • The assessment aims to identify risks and vulnerabilities in the financial system and non-financial entities.
  • Strategies will be developed for preventing and combating these threats.

Virtual Meeting

The bank has conducted a virtual meeting with supervised institutions to present preliminary results of the sectoral risk assessment and to clarify any doubts in completing questionnaires on money laundering, terrorism financing, and WMD proliferation.

Reports and Policies

The Mozambican authorities have published several reports, policies, and strategies related to anti-money laundering and combating the financing of terrorism (AML/CFT), including:

  • The Mozambique Mutual Evaluation Report
  • The National Risk Assessment Report

These reports highlight the importance of cooperation between financial institutions, law enforcement agencies, and other stakeholders in preventing and combating money laundering, terrorist financing, and WMD proliferation.

Guidelines for Virtual Asset Service Providers

The Banco de Moçambique has provided guidelines for virtual asset service providers (VASPs) to ensure compliance with AML/CFT regulations.

Call to Action

The authorities have urged entities, institutions, and individuals to familiarize themselves with the legal framework and reporting requirements to prevent supervised institutions from being misused for financing of WMD proliferation.

  • Mozambique Financial Information Office
  • Lists of persons and institutions designated by the United Nations Sanctions Committee (terrorism and its financing)
  • FATF Guidance on Counter Proliferation Financing

Contact

For any questions or comments, please send an email to: DSP_AML_CFT@bancomoc.mz