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Mozambique’s Financial Institutions Face Medium-High Risk of Money Laundering and Terrorism Funding

Lisbon, Mozambique - A recent risk assessment by the Banco de Moçambique has identified several sectors in the country’s financial industry as being at medium to high risk of money laundering and terrorism funding.

Sectors Vulnerable to Money Laundering and Terrorism Funding

The assessment, conducted in collaboration with the European Union’s Moneyval Committee, found that the following sectors are vulnerable to these types of crimes:

• Banking sector: considered medium-high risk due to its large size and volume of transactions.
• Mobile money institutions: identified as high-risk due to their focus on financing terrorism.
• Exchange offices: vulnerable to money laundering and terrorism funding, although less likely to be targeted by criminals.
• Microcredit operators: also vulnerable to these crimes, although less likely to be targeted.

Key Vulnerabilities in Mozambique’s Financial System

The assessment highlighted several key vulnerabilities in Mozambique’s financial system, including:

• Lack of employee training
• Ineffective compliance functions
• Inadequate monitoring and reporting of suspicious transactions

Priorities for Financial Institutions

To address these risks, the Banco de Moçambique has identified the following priorities for financial institutions:

• Employee training
• Ensuring the effectiveness of compliance functions
• Improving suspicious transaction monitoring and reporting

Commitments by the Banco de Moçambique

The bank has also committed to:

• Increasing the number of inspections it conducts on financial institutions
• Raising awareness among these institutions about the importance of regulation compliance

Conclusion

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Overall, the report emphasizes the need for Mozambique’s financial institutions to take a proactive approach to combating money laundering and terrorism funding in order to protect the country’s financial system and maintain international credibility.