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Bank of Mozambique Urges Financial Institutions to Take Action Against Terrorism and Weapons Proliferation

Maputo, Mozambique - March 5, 2024

The Bank of Mozambique (BM) has issued a stern warning to financial institutions in the country to take immediate action against terrorism and weapons proliferation. The BM has emphasized that all financial and non-financial institutions are required to freeze economic assets and resources within 24 hours upon notice.

Compliance Requirements

According to Article 25 and 26 of Law No. 15/2023, risk and compliance managers, suspicious transaction reporting officers, and the Mozambican Banking Association must be aware of the Specially Designated Nationals List (SDNL). They are also required to report any information on individuals or groups suspected of terrorist financing or proliferation.

Sectoral Risk Assessment

The BM has initiated a sectoral risk assessment of money laundering, terrorism financing, and weapons proliferation. The assessment aims to identify vulnerabilities in the financial system and is conducted in compliance with the 40 recommendations of the Financial Action Task Force (FATF). The preliminary results were presented during a virtual meeting held on March 5, 2024, highlighting areas of concern and providing guidance on how to mitigate risks.

Prevention Measures

To prevent financial institutions from being misused for financing proliferation, the BM has urged entities to conduct thorough due diligence and report suspicious transactions electronically. Financial institutions must also be vigilant in identifying and reporting any suspicious activities related to terrorist financing or weapons proliferation.

Key Takeaways

• Financial institutions must freeze economic assets and resources within 24 hours upon notice.
• Risk and compliance managers, suspicious transaction reporting officers, and the Mozambican Banking Association must be aware of the Specially Designated Nationals List.
• Institutions must conduct thorough due diligence and report suspicious transactions electronically.
• The BM has initiated a sectoral risk assessment of money laundering, terrorism financing, and weapons proliferation.

Useful Links

• 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

Contact Us

For any questions or comments arising from this information, please email: DSP_AML_CFT@bancomoc.mz