Mozambique has made significant progress in the fight against money laundering, concludes the Basel AML Index 2024, launched this week. The country has thus improved its position in the global ranking, moving from 6th to 12th place, with a reduction in the risk score from 7.88 to 7.15.
This progress indicates a positive trend in the management of financial risks, which are assessed on the basis of factors such as corruption, governance, financial transparency, compliance with international standards and the effectiveness of financial supervision mechanisms.
The Basel AML Index, drawn up by the Basel Institute on Governance and consulted by the Diário Ecómico ( DE), is a globally recognised tool that analyses the risk of money laundering and terrorist financing in 203 countries and jurisdictions.
The methodology combines data from reliable sources, including the Financial Action Task Force (FATF), to create a score that reflects each jurisdiction’s vulnerability in areas such as financial system integrity and transnational crime risk.
This result is particularly relevant considering that, in 2019, Mozambique topped the global ranking with a score of 8.22, reflecting an extremely high risk. In the following years, the country remained among the highest risk territories, but efforts to correct weaknesses in the financial system are now beginning to show tangible results.
In June 2024, during the sixth session of the high-level committee in the Prime Minister’s office, the national coordinator for Mozambique’s removal from the FATF (Financial Action Task Force) grey list, Luís Cezerilo, presented a detailed report on the progress made.
In 2021, only 10 of the 40 FATF recommendations were ‘compliant’ with international transparency requirements, 20 were ‘partially compliant’ and 10 were ‘not compliant’. Now, the picture has changed significantly: 25 recommendations are ‘compliant’, 13 partially compliant, and only two remain ‘non-compliant’, the document points out.
Despite the improvements seen in the last year, Mozambique is still in the group of the 15 most vulnerable countries, along with other African nations such as Guinea-Bissau, Gabon and the Republic of Congo.
Although progress is evident, the Basel AML report also warns of the need to step up efforts, especially in the fight against corruption, the reduction of illicit financial flows and the effective application of regulations. Strengthening financial supervision and increasing international collaboration are seen as indispensable measures for continuing to reduce the risks associated with money laundering.
Advances in financial transparency are, as we know, essential to strengthen the attractiveness of investment in the national economy, representing a critical step in aligning with global financial standards, improving the clarity of compliance and regulatory processes in key areas such as finance, real estate or NGOs, and thus increasing the degree of confidence on the part of external investors, essential steps to promote sustainable economic growth.
The final decision on Mozambique’s withdrawal from the FATF is expected to be taken in the first quarter of 2025, according to a report from the meeting on the matter that was recently released in Paris.
In a multisectoral effort coordinated by Mozambique’s Financial Information Office (GIFiM), the country has been approving legislation and rules in recent months to tighten control of financial movements, as part of the strategy to get off the Financial Action Task Force (FATF) grey list, which it joined in October 2022 for failing to eliminate deficiencies in the fight against money laundering and terrorist financing.
It should be noted that the FATF has given Mozambique two years to get off the grey list by complying with 11 recommendations aimed at preventing money laundering, money laundering and terrorist financing.
Text: Felisberto Ruco
