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Mozambique Strengthens Legal Framework to Combat Terrorism and WMD Proliferation

Maputo, Mozambique - The Mozambican government has taken a significant step in strengthening its legal framework to combat terrorism and weapons of mass destruction (WMDs) proliferation.

Preventing Misuse of Financial System

The move is aimed at preventing the misuse of the financial system for terrorist financing and WMD proliferation. According to Article 38, 39, and 40 of the Law concerned, financial institutions are required to freeze economic assets and resources within 24 hours upon notice.

Suspicious Transaction Reporting Mechanisms

  • Financial institutions are required to report suspicious transactions electronically, in compliance with procedures provided by the Governance and Financial Intelligence Management (GIFiM).
  • Biannual risk reporting is also mandatory, with financial institutions submitting information on customer accounts and transactions involving risks of money laundering, terrorism financing, and WMD proliferation.

Sectoral Risk Assessment

The Banco de Moçambique has initiated a sectoral risk assessment of money laundering, terrorism financing, and WMD proliferation, as required by Article 58 of Law No. 14/2023. The assessment aims to identify risks and vulnerabilities in the financial system and non-financial entities.

Regulatory Framework

The regulatory framework for anti-money laundering (AML), countering the financing of terrorism (CFT), and proliferation of WMDs is governed by several laws, including:

  • Law No. 14/2023
  • Law No. 15/2023
  • Decree No. 53/2023

International Cooperation

Mozambique has committed to implementing international standards for combating terrorism and WMD proliferation. The country has signed agreements with the Financial Action Task Force (FATF) and the United Nations Sanctions Committee to prevent the misuse of its financial system.

Stakeholder Engagement

The Banco de Moçambique has engaged with supervised financial institutions, including:

  • Credit institutions
  • Microfinance institutions
  • Exchange offices
  • Payment service providers
  • Virtual asset service providers

The regulator aims to ensure compliance with AML/CFT regulations and prevent the misuse of the financial system for terrorist financing and WMD proliferation.

Public Awareness

The government is urging risk and compliance managers, suspicious transaction reporting officers, and the Mozambican Banking Association to be aware of the list of designated persons and entities. Financial institutions are required to freeze assets within 24 hours upon notice and report suspicious transactions to the GIFiM.

The public is encouraged to report any information on suspicious transactions or individuals suspected of terrorist financing or WMD proliferation to the DSP_AML_CFT@bancomoc.mz email address.

  • Mozambique Financial Information Office
  • Lists of persons and institutions designated by the United Nations Sanctions Committee (terrorism and its financing)
  • FATF Guidance on Counter Proliferation Financing