Mozambique is taking significant steps towards achieving the goal of getting off the Financial Action Task Force (FATF) grey list by October of this year. To this end, the government has ordered companies operating in the real estate and automobile sectors to draw up a “Suspicious Transactions Report”, with a view to eliminating acts of money laundering and terrorist financing.
“Entities involved in real estate brokerage, the sale and resale of real estate, construction companies engaged in the direct sale of real estate, as well as companies engaged in the sale and resale of new and used vehicles, are obliged to appoint a person responsible for reporting suspicious transactions.
This mandate is in line with the Law that establishes the Legal Regime and Preventive Measures against Money Laundering, the Financing of Terrorism and the Proliferation of Weapons of Mass Destruction,” explained a directive issued by Mozambique’s Financial Intelligence Office (GIFIM), according to Further Africa.
According to the publication, companies that fall into these categories must register with GIFIM by 15 July, otherwise they will face unspecified sanctions, and this registration is not merely a formality, but a crucial step to ensure that these sectors follow international standards in the fight against financial crimes.
“Mozambique’s inclusion on the FATF grey list on 22 October 2022 highlighted significant deficiencies in the country’s framework for dealing with money laundering and terrorist financing. However, the country is making concerted efforts to address these deficiencies,” recalled Further Africa.
For economists and financial experts, mentioned by the information portal, this action represents a critical step in aligning the country with global financial standards, pointing out that it not only improves the integrity of the property and automotive sectors, but also increases investor confidence, introduces improvements in compliance and regulatory structures that are essential to promoting sustainable economic growth.
“Mozambique’s proactive measures to combat money laundering and terrorist financing reflect a robust commitment to financial integrity. By imposing strict compliance requirements, the country is paving the way for a more transparent and secure financial landscape. As we approach the FATF plenary session in October, the nation’s efforts signal a promising future for economic stability,” they concluded.