Mozambique Under Increased Monitoring for AML Compliance, EU Facility Steps in to Provide Assistance
Mozambique has been placed under increased monitoring by the Financial Action Task Force (FATF) following its designation on the FATF Grey List in October 2022. This move requires the country to work closely with the FATF to address strategic deficiencies in its anti-money laundering, terrorist financing, and proliferation financing regime.
EU Global Facility Steps In
In response to Mozambique’s request, the EU Global Facility on Anti-Money Laundering/Counter-Terrorist Financing conducted a scoping mission to the country in November 2022. This marked the beginning of a technical assistance program aimed at bolstering Mozambique’s anti-money laundering and counter-terrorist financing framework.
Mozambique’s Compliance Status
According to Mozambique’s most recent Mutual Evaluation Report, released in 2021, the country was found to be compliant with three FATF recommendations and largely compliant with seven others. However, it fell short in terms of effectiveness, with no areas deemed highly or substantially effective.
Areas for Improvement
The EU Global Facility’s training and activities will focus on supporting Mozambique’s authorities as they work to address these deficiencies and improve their anti-money laundering and counter-terrorist financing regime. Key areas for improvement include:
- Enhancing the effectiveness of measures to prevent money laundering and terrorist financing
- Strengthening international cooperation and information sharing
- Improving customer due diligence and beneficial ownership requirements
EU Facility’s Support
The EU Global Facility will provide technical assistance to Mozambique in several key areas, including:
- Conducting a detailed risk assessment of the country’s financial sector
- Developing a comprehensive anti-money laundering/counter-terrorist financing strategy
- Enhancing the capacity of Mozambique’s authorities to implement and enforce anti-money laundering/counter-terrorist financing regulations
By working closely with the EU Global Facility, Mozambique can improve its compliance with international standards and reduce the risk of money laundering and terrorist financing.