Mozambique: Authorities Crack Down on AMLD Compliance, Effective Beneficiaries in Focus
Strengthening Financial Transparency and Combating Money Laundering
Mozambique’s regulatory authorities have announced a crackdown on compliance with Anti-Money Laundering Directive (AMLD) regulations to strengthen financial transparency and combat money laundering. The focus is on identifying effective beneficiaries of collective investment undertakings, corporate entities, and fiduciary funds.
Defining Effective Beneficiaries
According to Article 13 of the AMLD Regulations, effective beneficiaries are defined as individuals or entities that ultimately hold control over a sufficient percentage of units of participation or ownership in circulation at collective investment undertakings or corporate entities. This includes natural persons who exercise control through other means, such as holding senior management positions.
Indicators of Control
The regulations specify certain indicators of control or other circumstances that may indicate control by other means, including:
- Holding shares representing more than 10% of a company’s stock
- Units of participation or ownership in circulation
Effective Beneficiaries in Fiduciary Funds
In the case of fiduciary funds, effective beneficiaries are considered to be:
- Founders
- Fiduciary administrators
- Curators
- Beneficiaries
- Any other natural person who holds final control through direct or indirect participation or by other means
Pension Funds
Pension funds are subject to specific rules regarding effective beneficiaries, including those that finance pension plans whose participants or beneficiaries are members of administrative bodies. In such cases, the effective beneficiaries are considered to be:
- Participants
- Beneficiaries themselves
Consequences of Non-Compliance
The regulatory authorities have emphasized the importance of compliance with AMLD regulations, stating that any non-compliance may result in severe penalties, including fines and even criminal prosecution.
Disclosure Requirements
As part of the crackdown, entities subject to obligation are required to provide information on effective beneficiaries to:
- Judicial authorities
- Prosecutor-General’s Office of the Republic
- Oversight authorities
- GIFiM (General Inspectorate of Financial Intelligence)
Expected Outcome
The move is seen as a major step forward in Mozambique’s efforts to combat money laundering and terrorist financing, and is expected to increase transparency and accountability in the financial sector.
By focusing on effective beneficiaries, Mozambique’s regulatory authorities aim to strengthen financial transparency and combat money laundering. The crackdown on non-compliance with AMLD regulations sends a clear message that compliance is essential for entities operating in the country’s financial sector.