Foreign workers and employees residing in Mozambique will no longer receive their salaries in their home country accounts, and salaries will be processed to their accounts domiciled in Mozambique.

Information received by our newsroom indicates that this is a measure imposed by the Bank of Mozambique.

The procedure for the execution of salary payments allows the account holder, upon receipt of the salary, to transfer the amount [to his regular/foreign salary account], through his personal account [in Mozambique], as coming from his income.

This can only be done "as long as the necessary supporting documentation is gathered, namely the duly formalized work contract and the discharge certificate", notes the same source.

MZNews has not yet obtained clarification from the Bank of Mozambique about this measure for processing the salaries of foreign workers and employees residing in the country.

Paragraph c), Article 3 of the Foreign Exchange Act of March 11, 2009, on foreign exchange residence, considers "residents in national territory", all foreign citizens resident in Mozambique for more than a year, "except diplomats, consular representatives or alike, foreign military personnel exercising governmental functions in the country, as well as members of their families. And the same law states that "in case of doubt it is presumed that the person concerned is a resident, and it is up to him, if necessary, to disclaim this status".

Mozambique is increasingly tightening the siege of money circulation in its territory.

In recent times Mozambique has been the target of criticism for its fragility of capital penetration for laundering and terrorist financing. Mozambique's Financial Intelligence Office (GIFiM) has reportedly received thousands of reports of financial transactions suspected of being related to money laundering and terrorist financing.

October 22, The Financial Action Task Force (FATF) has placed Mozambique, Tanzania and the Democratic Republic of Congo (DRC) on its "grey" listIn other words, on the list of countries or jurisdictions that need to be more vigilant in enforcing anti-money laundering, counter-terrorist financing, and proliferation financing rules.

The Center for Public Integrity (CIP) has recently warned that Mozambique is at high risk of joining the list of countries failing to implement FATF standards to curb such practices. The implications would be that the country's financial system would be affected by slow banking operations from 48 hours to 21 days, and its VISA credit cards would stop working in the European Union.

Recently, the Executive approved measures for Anti-Money Laundering and Terrorist Financing 2023-2024 to aim for effectiveness in the prevention and repression of this type of crime.