Financial Crime World

Financial Institutions’ Anti-Money Laundering Policies in Mozambique Receive Boost

Mozambique has made significant progress in strengthening its anti-money laundering (AML) and counter-terrorist financing (CFT) measures, according to a recent report by the Eastern and Southern Africa Anti-Money Launderling Group (ESAAMLG).

Progress Under Enhanced Follow-Up Process

The country has been under an enhanced follow-up process since 2021, following the adoption of its Mutual Evaluation Report. ESAAMLG’s latest Follow-Up Report evaluates Mozambique’s progress in addressing technical compliance deficiencies identified in its 2021 Mutual Evaluation Report.

Recommendations Upgraded

As a result of the evaluation, several recommendations were upgraded from “partial compliance” to “largely compliant” or “compliant”, indicating significant improvements in the country’s AML/CFT regime. The upgrades are attributed to Mozambique’s efforts to address deficiencies in areas such as:

  • Customer due diligence
  • Beneficial ownership
  • Reporting of suspicious transactions

Ongoing Efforts and Challenges

Mozambique will continue to work with ESAAMLG to improve its implementation of AML/CFT measures, remaining under enhanced follow-up until further progress is made. While the country has demonstrated commitment to strengthening its AML/CFT framework through the adoption of key laws and regulations, challenges remain, including:

  • Lack of criminalization of terrorist financing

Historical Context

ESAAMLG’s assessment comes after a series of evaluations and reports, dating back to 2011, which have provided recommendations for improving Mozambique’s AML/CFT regime. The latest report marks an important milestone in the country’s efforts to strengthen its financial system and reduce the risk of money laundering and terrorist financing.

By continuing to work with ESAAMLG and addressing outstanding challenges, Mozambique is taking a crucial step towards ensuring the integrity of its financial institutions and protecting its economy from the threats of money laundering and terrorist financing.