Financial Crime World

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Mozambique Tightens Banking Regulations to Combat Financial Crime

Mozambique has implemented various laws and regulations aimed at preventing financial crime and ensuring compliance with international standards. These measures, which came into effect in recent years, are designed to combat money laundering, terrorist financing, and other financial crimes.

Key Legislation: Law 19/2018

One key legislation is Law 19/2018, which establishes the legal framework for using movable assets as collateral to ensure compliance with obligations. This law also created the Central Securities Registry, a critical institution responsible for monitoring and regulating the country’s securities market.

Foreign Exchange Operations Regulation

Another important regulation is Notice No. 20/GBM/2017, which outlines the rules and procedures for conducting foreign exchange operations in Mozambique. The notice aims to prevent illegal activities such as money laundering and terrorist financing by setting strict guidelines for transactions involving foreign currencies.

Anti-Money Laundering Efforts

The Decree No. 66/2014 is also a significant development in Mozambique’s anti-money laundering efforts. This decree approves the Regulation of Law No. 14/2013, which sets out the legal framework and measures to prevent and repress money laundering, terrorist financing, and related crimes.

Key Provisions

  • Requires financial institutions to implement robust customer due diligence procedures
  • Mandates reporting suspicious transactions to the authorities

Landmark Legislation: Law No. 14/2013

Law No. 14/2013 is a landmark legislation that repealed Law No. 7/2002 and introduced a new regime for preventing and combating money laundering and terrorist financing in Mozambique. The law sets out strict penalties for those found guilty of these crimes, including imprisonment and fines.

Other Key Legislation

  • Foreign Exchange Law (Law No. 11/2009): Regulates all kinds of transactions, businesses, and operations involving foreign currencies
  • Decree-Law No. 4/2009: Approves the Securities Market Code, which sets out the rules and regulations for Mozambique’s securities market
  • Law No. 5/98: Regulates banking activities in Mozambique, including requirements for banks to maintain adequate capital, liquidity, and risk management practices
  • Law No. 1/92: Defines the nature, objectives, and functions of the Bank of Mozambique, the country’s central bank

Conclusion

These laws and regulations demonstrate Mozambique’s commitment to preventing financial crime and ensuring compliance with international standards. By strengthening its regulatory framework, the country aims to maintain a stable and secure financial system that supports economic growth and development.