Mozambique Faces Increased Scrutiny for CFT Compliance Requirements
In a move aimed at addressing strategic deficiencies in its regime to combat money laundering, terrorist financing, and proliferation financing, Mozambique was officially listed as a Jurisdiction under increased monitoring by the Financial Action Task Force (FATF) in October 2022. This designation puts Mozambique on the so-called “Grey List”, where it will work closely with the FATF to address its shortcomings.
Technical Assistance Provided by EU Global Facility
In response to a request for technical assistance, the EU Global Facility on Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) conducted a scoping mission to Mozambique in November 2022. This move is aimed at supporting the country’s authorities as they strive to improve their anti-money laundering and counter-terrorist financing framework.
FATF Mutual Evaluation Report
According to the latest Mutual Evaluation Report, Mozambique was deemed:
- Compliant with three of the FATF 40 Recommendations for implementing AML/CFT standards
- Largely Compliant with seven of the FATF 40 Recommendations for implementing AML/CFT standards
- Highly Effective in zero areas and Substantially Effective in zero areas when it comes to Effectiveness and Technical Compliance ratings
Training and Activities by EU Global Facility
The training and activities conducted by the EU Global Facility on AML/CFT will seek to support Mozambique’s authorities as they work to strengthen their anti-money laundering and counter-terrorist financing framework, which is defined under the EU Fourth and Fifth Anti-Money Laundering Directives. The ultimate goal is to ensure that Mozambique meets its international obligations and effectively combats financial crimes.
By working closely with Mozambique’s authorities, the EU Global Facility aims to:
- Strengthen the country’s anti-money laundering and counter-terrorist financing framework
- Enhance the effectiveness of its AML/CFT regime
- Support Mozambique in meeting its international obligations
Overall, the increased scrutiny by the FATF and technical assistance provided by the EU Global Facility is aimed at helping Mozambique improve its CFT compliance requirements and effectively combat financial crimes.