Mozambique Grapples with Compliance Issues, Listed by FATF on “Grey List”
Mozambique has been officially listed as a Jurisdiction under increased monitoring by the Financial Action Task Force (FATF) to tackle money laundering, terrorist financing, and proliferation financing.
The Designation: Increased Monitoring and Technical Assistance
The designation, also known as being placed on the “Grey List”, means that Mozambique will work closely with the FATF to address strategic deficiencies in its anti-money laundering and counter-terrorist financing regime. This move is aimed at improving the country’s compliance with international standards.
Scoping Mission and Technical Assistance
Following Mozambique’s request for technical assistance, a scoping mission was conducted by the EU Global Facility on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) in November 2022. The mission aims to support the country’s authorities in improving its anti-money laundering and counter-terrorist financing framework.
Compliance Status: Areas for Improvement
According to Mozambique’s last Mutual Evaluation Report, released in 2021, the country was deemed compliant with three out of the FATF’s 40 Recommendations and largely compliant with seven others. However, it fell short in effectiveness and technical compliance ratings, with no areas deemed highly or substantially effective.
Training and Activities
The training and activities conducted by the EU Global Facility on AML/CFT will focus on supporting Mozambique’s authorities in implementing measures outlined under the EU Fourth and Fifth Anti-Money Laundering Directives. The initiative aims to bolster the country’s efforts in combating money laundering, terrorist financing, and related threats.
- Supporting implementation of anti-money laundering and counter-terrorist financing measures
- Improving effectiveness and technical compliance ratings
- Enhancing cooperation between financial institutions and law enforcement agencies
By working closely with the FATF and receiving technical assistance from the EU Global Facility, Mozambique is taking a crucial step towards improving its anti-money laundering and counter-terrorist financing regime.