The government, through the Ministry of Economy and Finance (MEF), has been carrying out various actions with a view to removing Mozambique from the Grey List of the Financial Action Task Force (FATF), an intergovernmental body that aims to develop and promote national and international policies to combat money laundering and terrorist financing.

Mozambique has been on the FATF's Grey List since October 2022, after the organization found non-compliance in actions to prevent and combat money laundering and terrorist financing in the country.

In the meantime, in order to get Mozambique off the list, the 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.

With regard to institutional capacity building, the FATF calls for the creation of a Permanent Coordination Committee on Money Laundering and Terrorist Financing made up of law enforcement authorities, namely the Supreme Court (TS), the Attorney General's Office (PGR) and the National Criminal Investigation Service (SERNIC), in order to guarantee effective and timely cooperation.

The body also demands the acquisition and equipping of technical and operational material for the Mozambique Financial Information Office (GIFIM), PGR and SERNIC; the intensification of the communication strategy by the 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 scope of sectoral operation.

The FATF is also calling for legislative changes, such as the specific revision of the Civil Forfeiture Law; the Money Laundering and Terrorist Financing Laws; the submission for approval of the Electronic Process Bill, as well as the drafting of a Proposal for the Regulation of Money Laundering and Terrorist Financing Laws.

Of these recommendations, a source at the MEF told "Carta" that there has been notable progress in the first report sent last March by the government (and whose results were confirmed on May 31) 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 begun a general sectoral risk assessment for non-financial activities and professions, a national risk assessment for terrorist financing and, in particular, for non-governmental organizations in Mozambique.

In addition, the source said that work had already begun on the specific revision and regulation of the Money Laundering and Terrorist Financing and Beneficial Ownership Laws. He also stressed that there was interoperability in the 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 the MEF will continue to work with the Focal Points on the aspects still to be improved.

During this period, specifically between June 19 and 23, the FATF will indicate Mozambique's position based on the assessment made in the first report. By July 31 of this year, the MEF should have finished drawing up the second progress report. It should be noted that the United States of America, the European Union and the World Bank are backing Mozambique to get off the FATF's so-called Grey List. (Source: Carta)