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Mozambique Tightens Laws Against Terrorism and Weapons Proliferation

New Regulations to Combat Financing of Terrorism and Proliferation of Weapons of Mass Destruction

Maputo, Mozambique - The Banco de Moçambique has taken significant steps to reinforce its efforts against terrorism and weapons proliferation by imposing stricter regulations on financial institutions.

Stricter Regulations on Financial Institutions

As part of the country’s legal framework, Article 38-40 of Law No. 14/2023 requires all financial and non-financial institutions to:

  • Freeze economic assets and resources within 24 hours upon notice
  • Be aware of a list of individuals and groups designated by the United Nations Sanctions Committee (terrorism and its financing)
  • Report any information on these entities to the GIFiM within 24 hours

Additional Requirements for Financial Institutions

Financial institutions are also required to:

  • Submit biannual risk reports regarding risks of money laundering, terrorism financing, and proliferation of weapons of mass destruction
  • Submit reports electronically through procedures provided by the GIFiM

Sectoral Risk Assessment and Induction Sessions

The Banco de Moçambique has conducted a sectoral risk assessment as required by Article 58 of Law No. 14/2023 to identify areas that require improvement in the country’s anti-money laundering and counter-terrorism measures.

Induction sessions have also been held with financial institutions participating in the Regulatory Sandbox program to raise awareness on:

  • The advantages and risks of money laundering, financing of terrorism, and proliferation of weapons of mass destruction related to their products and solutions

Virtual Meeting and Campaign

In a virtual meeting held on March 5, 2024, the Banco de Moçambique presented preliminary results of the sectoral risk assessment to supervised financial institutions. The regulator emphasized the importance of compliance with anti-money laundering and counter-terrorism regulations.

A campaign has also been launched to improve understanding among entities, institutions, and individuals on proliferation financing matters, highlighting:

  • The consequences of non-compliance with legal obligations
  • Red flags of sanctions evasion

Further Information

For further information on Mozambique’s anti-money laundering and counter-terrorism measures, please visit [insert website link].