Mozambique’s Ministry of Economy and Finance will now manage assets and property seized or recovered by the state from illicit or criminal activities under a review of its powers and responsibilities.
The measure was contained in Presidential Decree 02/2024 of March 4th, seen by FurtherAfrica.com last Friday, which recognizes the “need to revise the attributions and competencies” of the finance ministry. Specifically, among the new powers already in effect, the ministry led by Max Tonela now assumes the “administration of assets and property seized or recovered in favor of the State, within the scope of national processes or acts arising from international legal and judicial cooperation.”
In managing seized assets, the decree further states the finance ministry must “conserve, protect and manage the assets and property seized into state custody, in a diligent and zealous manner,” as well as “determine the disposal, capitalization, sale and allocation to public service or destruction of recovered goods.” Mozambique has had a Central Asset Recovery Office (GCRA) under the Attorney General’s Office since 2022 tasked with investigating, tracking, seizing and recovering assets. In its first year, it announced recovering over 1 billion meticais ($14.3 million) from illicit sources, including 30 properties and 12 vehicles.
A finance ministry source told FurtherAfrica.com that this redefinition of powers “adapts the institution’s responsibilities to new developments, reinforcing transparency and good governance in crucial areas.”
A “major novelty” will be the “creation of an Asset Management Office” under the finance sector responsible for managing seized or recovered assets from illicit or criminal activities. “This measure aims to strengthen anti-money laundering and combating the financing of illicit activities efforts and will contribute to the government’s efforts to remove Mozambique from the ‘grey list’,” the source stressed.
The finance ministry will also now “officially” manage the Executive Coordination Committee for removing Mozambique from the Financial Action Task Force (FATF) “grey list.”
“The entity will play a key role in strengthening the national financial system and implementing necessary actions to meet international requirements for preventing and combating money laundering, terrorist financing and proliferation financing,” the source added.
Another approved change is integrating “the climate change component into public expenditure programs,” as well as “strengthening climate finance mobilization capabilities.”
“This will allow the country to access international partner climate funds for adaptation and mitigation of climate change impacts, an increasingly pressing challenge,” it also highlighted.
Changes the ministry says “represent an important step in consolidating transparency and good governance” by the executive.
“Strengthening the finance ministry’s capacities in these areas will contribute to financial stability, international credibility and the country’s sustainable development,” it concluded.
Further Africa
