The Insurance Supervision Institute (ISSM) has imposed a fine of 10 million meticals on the Insurance Company (EMOSE) due to deficiencies in complying with the rules for the prevention of money laundering and terrorist financing, the newspaper Noticias reported .
According to the ISSM, EMOSE committed several offences under the Control Law, resulting in penalties of two million meticals for each irregularity identified. The legislation requires financial institutions and designated non-financial entities to strictly fulfil their obligations towards clients, whether old or new.
‘Institutions must adopt appropriate measures to identify, assess, understand and mitigate the risks associated with money laundering, terrorist financing and the proliferation of weapons of mass destruction, taking into account the factors established by the law,’ said ISSM.
The document quoted by the newspaper explains that the offences refer to failures in risk assessment, the identification of politically exposed persons, the identification of beneficial owners and the implementation of mechanisms and procedures to ensure hiring criteria and internal audit regulations.
The law also requires the appointment of a suspicious transaction reporting officer, responsible for reporting suspicious economic and financial transactions to Mozambique’s Financial Information Office (GIFIM).
According to the information, EMOSE, the country’s largest and oldest insurance company, made a profit of 43.4 million meticals last year and technical results of 112.3 million meticals. In announcing its results, the company emphasised its solid financial position, with a solvency margin coverage rate of 756.27%.
The applicable legislation, Law 14/2023 of 28 August, establishes the legal regime for the control and prevention of financial crimes, obliging institutions to implement adequate internal control policies and procedures.
