The Government, through the Ministry of Economy and Finance (MEF), has been carrying out several actions aimed at removing Mozambique from the Grey List of the Financial Action Task Force (GAFI), an intergovernmental body that aims to develop and promote national and international policies to combat money laundering and the financing of terrorism. Mozambique has been on the FATF’s grey list since October 2022, after the organisation found failures in the country’s actions to prevent and combat money laundering and terrorism financing.
Meanwhile, to remove Mozambique from the list, MEF has been working to correct deficiencies found by the FATF in the fight against money laundering and terrorist financing, specifically in the area of legislation, identification of the beneficial owner, weak national and sectoral risk assessment, as well as poor recruitment of human resources and institutional financial and technical capacity building.
Regarding institutional capacity building, the FATF calls for the establishment of a Permanent Coordination Committee on Money Laundering and Terrorist Financing composed of the law enforcement authorities, namely, the Supreme Court (TS), Prosecutor General’s Office (PGR) and National Criminal Investigation Service (SERNIC), in order to ensure effective and timely cooperation.
The body also requires the acquisition and equipping of technical and operational material for the Financial Intelligence Office of Mozambique (GIFIM), PGR and SERNIC; the intensification of the communication strategy by sectors, as well as the appointment of people to work exclusively on matters relating to the removal of Mozambique from the Grey List and/or within the sectoral operation.
The FATF also demands legislative changes, such as the punctual revision of the Civil Confiscation Law; of the Money Laundering and Terrorism Financing Laws; the submission for approval of the Electronic Process Bill, as well as the drafting of a Proposed Regulation of the Money Laundering and Terrorism Financing Laws.
Of these recommendations, MEF source told the “Carta” there are remarkable progresses that are included in the first report sent last March by the Government (and whose results were confirmed last 31 May) to the International Cooperation Review Group (ICRG), an entity linked to the FATF, which brings together experts who monitor the progress of countries in matters related to money laundering and terrorist financing.
Our source pointed out that of the various requirements, the Government has already started in general the sectoral risk assessment for non-financial activities and professions, the national risk assessment of terrorist financing and particularly in Non-Governmental Organisations in Mozambique.
In addition, the source said that actions have already started for the timely review and regulation of the Money Laundering and Terrorism Financing Laws and the Beneficiary Law. He also stressed that there is interoperability in actions of the Permanent Coordination Committee on Money Laundering and Terrorist Financing between SERNIC, PGR and TS.
Between May and August 2023, the source assured that MEF will continue to work with the Focal Points of the aspects still to be improved. During this period, specifically between 19 and 23 June, the FATF will indicate Mozambique’s position based on the assessment made in the first report. On 31 July this year, the MEF should finish drawing up the second progress report. It should be noted that the United States of America, the European Union and the World Bank support Mozambique to get out of the so called FATF Grey List.
Carta de Moçambique
