Financial Crime World

Mozambique Struggles to Implement Anti-Money Laundering Regulations

Maputo, Mozambique - A recent assessment by financial experts has revealed that Mozambique’s efforts to implement anti-money laundering (AML) regulations are lacking in several key areas. According to the Financial Action Task Force (FATF), Mozambique is only “partially compliant” with 14 out of 40 Recommendations for Combating Money Laundering and Terrorist Financing.

Weaknesses Identified

The report highlights several weaknesses, including:

  • Lack of effective measures to prevent money laundering through non-profit organizations and new technologies.
  • Inadequate regulation and supervision of financial institutions and designated non-financial businesses and professions (DNFBPs).

Strengths Recognized

On the other hand, the report commends Mozambique for its efforts in:

  • Assessing risk and applying a risk-based approach.
  • National cooperation and coordination in combating money laundering.
  • Implementing targeted financial sanctions related to terrorism and terrorist financing.

Recommendations for Improvement

Despite these strengths, the FATF recommends that Mozambique take immediate action to address its weaknesses and improve its overall AML regime. This includes:

  • Strengthening customer due diligence requirements.
  • Improving record keeping.
  • Enhancing internal controls and supervision.

Concerns and Consequences

The report’s findings come as no surprise to many in the financial sector, who have long expressed concerns about Mozambique’s lack of effective AML regulations. The country has struggled with corruption and money laundering for years, and experts warn that if left unchecked, these problems could have serious consequences for the economy and national security.

Government Response

In response to the report, government officials in Mozambique have pledged to take immediate action to address the weaknesses identified by the FATF. “We are committed to implementing effective AML regulations and combating money laundering in all its forms,” said a government spokesperson. “We will work closely with international partners to ensure that our financial system is safe and secure.”