Mozambique has been officially removed from the Financial Action Task Force (FATF) grey list, marking international recognition of the country’s efforts to strengthen its mechanisms for combating money laundering and the financing of terrorism. The decision was announced on Friday (24th), placing Mozambique alongside South Africa, Nigeria, and Burkina Faso, which were also removed from the list of jurisdictions under increased monitoring.
According to the Engineering News portal, Mozambique’s removal from the list represents a major milestone for the national financial system, signaling to international markets that the country has been reinforcing its legal and institutional framework in matters of financial transparency and integrity.
Although FATF has not publicly disclosed the specific reforms carried out by each country, the decision implies that Mozambique has fulfilled a set of required corrective actions, demonstrating effective and sustainable progress. Mozambique had been placed under enhanced monitoring due to strategic deficiencies identified in financial supervision, criminal investigation, and inter-institutional cooperation mechanisms.
Remaining on the grey list typically entails greater scrutiny of cross-border financial transactions, additional due diligence requirements for banking institutions, and potentially a negative impact on foreign direct investment. Mozambique’s removal from the list follows a comprehensive reform process that, according to international analysts, included strengthening financial supervision capacity, improving coordination between regulatory and judicial bodies, and tightening procedures for identifying and reporting suspicious transactions.
FATF’s recognition comes at a time when several countries in Southern Africa are facing economic crime and illicit capital flow challenges. The decision to delist Mozambique is expected to reduce operational costs in the banking sector, enhance the country’s international reputation, and boost investor confidence.
Despite the progress, FATF emphasized that the achievements must be sustained and deepened, recommending that Mozambique continue to strengthen its oversight and judicial institutions to ensure the lasting effectiveness of its mechanisms for preventing and combating financial crimes.
Source: Diário Económico
