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Money Laundering: Mozambique Steps Up Enforcement of Cash Purchases of Vehicles and Real Estate

Money Laundering: Mozambique Steps Up Enforcement of Cash Purchases of Vehicles and Real Estate

As part of the fight against money laundering and terrorist financing, the Mozambican authorities announced on Monday (18) that they are going to step up inspections into the purchase of vehicles and property in cash.

“We are preparing a revision to the law to include a limit on cash payments, especially when it comes to the payment of movable and immovable property, subject to registration, because they involve high values. The idea is to intensify the inspection process,” said Paulo Munguambe, director of Legal Services, Studies and Cooperation at the Mozambique Financial Information Office (GIFiM).

He emphasised that the country currently has no specific legislation setting limits, although there has been a rule in force since 2014, which was revised in 2023 and is already applied by financial institutions and not by the automobile and real estate sectors.

“What’s missing is some sensitisation, especially for these non-financial sectors,” he argued.

According to the explanation, “for cash payments, amounts equal to or greater than 250,000 meticais are authorised and those equal to or greater than 750,000 meticais must be made via electronic transactions or cheques. Transactions must be communicated to GIFiM”.

The official revealed that GIFiM is targeting 21 establishments selling new cars, 263 used cars and 606 in the real estate sector operating in the country, with around 20 inspections having already been carried out on the ground since the end of February.

In recent months, Mozambique has passed legislation and regulations to tighten controls on financial movements, as part of its strategy to get off the grey list.

On 22 October 2022, Mozambique was placed on the so-called grey list of the Financial Action Task Force (FATF) for failing to eliminate deficiencies in the fight against money laundering and terrorist financing.

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