Mozambique Tightens Legal Framework to Combat Terrorism and Weapons Proliferation

Strengthening the Legal Framework Against Terrorism and Weapons Proliferation

Mozambique has introduced new regulations to strengthen its legal framework against terrorism and weapons proliferation. The country’s financial institutions are now required to freeze assets of individuals and groups linked to these activities.

New Regulations for Financial Institutions

According to Article 38-40 of the Law No. 14/2023, all financial and non-financial institutions in Mozambique must:

• Freeze economic assets within 24 hours upon notice from the country’s Financial Information Office (GIFiM)
• Report suspicious transactions to GIFiM within 24 hours
• Be aware of a list of designated individuals and groups linked to terrorism and weapons proliferation

Sectoral Risk Assessment

The country’s central bank, Banco de Moçambique, has initiated a sectoral risk assessment of money laundering, terrorism financing, and proliferation of weapons of mass destruction. The assessment aims to identify areas that require improvement in the country’s anti-money laundering and counter-terrorism financing framework.

New Reporting Mechanisms for Suspicious Transactions

Mozambique has introduced new reporting mechanisms for suspicious transactions:

• Financial institutions must report electronically
• Biannual risk reports must be submitted to Banco de Moçambique by December 31 and June 30 each year

International Recognition

The country’s efforts to combat terrorism and weapons proliferation have been praised by international financial authorities. The Financial Action Task Force (FATF) has recommended that Mozambique strengthen its legal framework to prevent the misuse of the financial system for these activities.

Useful Resources

• 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: DSP_AML_CFT@bancomoc.mz for more information on Mozambique’s anti-money laundering and counter-terrorism financing framework.