A report released by the government reveals that 8% of non-governmental organisations (NGOs) in Mozambique have annual revenues of more than 31.75 million meticals (500,000 dollars), ‘underlining the economic importance of these entities in the country’, as reported by Lusa.
According to the information quoting the study, entitled National Terrorist Financing Risk Assessment Report 2024, which was drawn up in the context of the government’s commitment as a member of the Financial Action Task Force (FATF), which placed Mozambique on the ‘grey list’ of countries under increased monitoring in October 2022, among the NGOs analysed, 8% have annual revenues in excess of 31.75 million meticals (500,000 dollars). In addition, 8% have incomes between 6.35 million and 31.72 million meticals (100,000 to 499,900 dollars), while 77% of the organisations have annual incomes of less than 970,000 meticals (15,000 dollars).
The study covered 402 organisations operating in the country, including associations, foundations, religious denominations and other foreign organisations, out of an estimated total of 5074 organisations. ‘It is noteworthy that 63 per cent of the NGOs surveyed provide humanitarian support on a regular or occasional basis, especially in response to natural disasters, and many have international links for receiving funds, goods or services,’ reads the document.
According to the report, although there are no ‘links’ between Mozambican NGOs and the financing of terrorism affecting Cabo Delgado province, the document does identify some vulnerabilities. “No links or use of NGOs for terrorist financing were identified. Nor was evidence found of fraud and corruption practices in the NGO sector and crimes such as money laundering,’ the report states.
Despite finding no evidence of the use of NGOs to finance terrorism, the report mentions three suspicious cases being dealt with by the courts, two in the pre-trial phase and one under investigation, which may be related to ‘mere violation of prudential rules, tax offences or, in the extreme, nothing at all’.
The document also identifies four potential vulnerabilities, particularly informal financial transactions and operations in risk zones. ‘In the latter case, mention is made of a religious-based NGO operating in Cabo Delgado, suspected of links to the Ahlu Sunnah Wal Jamaah (ASWJ) terrorist group, which operates in the region,’ it points out.
The report recommends harmonising the regulation of foreign NGOs with international standards to ensure more adequate registration and disclosure processes, and the introduction of a formal system to identify NGOs at greater risk of abuse of terrorist financing.
