The Central Office for Combating Organised and Transnational Crime (GCCC) has warned that money laundering and terrorist financing pose imminent risks to Mozambique’s business sector, with the potential to trigger severe legal sanctions, reputational damage, and exclusion from markets.
The warning was issued by Nazimo Mussa, GCCC representative, during the panel on corporate risk management and compliance at the 1st Corporate Governance Congress of Mozambique, held this Thursday (14) in Maputo.
According to Mussa, the absence of robust internal controls, failure to monitor transactions, and the use of untraceable financial channels create opportunities for companies to be used as instruments for laundering illicit funds.
In the case of terrorist financing, the representative noted that non-profit organisations can be exploited to channel resources to extremist groups, as has been observed in some illicit operations linked to the insurgency in Cabo Delgado.
To mitigate these risks, Mussa advocated for the implementation of clear compliance policies, strict verification of clients’ identities and the sources of their funds, transparency in identifying ultimate beneficial owners, and ongoing staff training to recognise warning signs. He also underlined the importance of banks and financial institutions maintaining an active flow of suspicious transaction reports to the competent authorities, stressing that such cooperation has enabled faster and more effective investigations.
“Prevention mechanisms should not exist only on paper; they must be applied consistently to protect companies from unnecessary risks and preserve the integrity of the economic system,” he stated.
The panel was part of the programme of the 1st Corporate Governance Congress of Mozambique, organised by the Mozambican Institute of Corporate Governance Association (IGCMZ) with the support of Standard Bank, bringing together national and international directors, managers, and specialists to discuss modern governance practices in the public and private sectors.
Text: Felisberto Ruco
