The Mozambique Financial Intelligence Office (GIFIM), recently published its first National Assessment of Money Laundering and Terrorist Financing Risks report, which concludes that the risk of money laundering is high, but on a downward trend.

The document, with more than 200 pages, presents a set of previous crimes that are likely to generate products to be laundered, namely, corruption, drug trafficking, tax fraud, environmental crimes (flora and fauna), kidnapping crimes, and private carcere, all with a high level with an increasing trend.

According to GIFIM, the sector of buying and selling stones and precious metals is witnessing the smuggling and trafficking of gems and precious metals mined in the country in a criminal manner, resulting in loss of revenue for the state and financing of illicit activities.

"An increase in the incidence of extraction and trafficking of minerals by national and international criminal organizations is noted. This sector presents a high level of vulnerability," notes the study, which also included the collaboration of the private sector and civil society.

The GIFIM report also points to Drug Trafficking, Human Trafficking and Smuggling (merchandise and wildlife products) as the main external threat to money laundering in Mozambique.

Point 9 of the executive summary of the report, which we have been quoting, points to a worrying scenario. When it comes to national vulnerability, the vehicle sales sector shows a high level. In second place are the real estate, migration, flora and fauna, mineral resources, customs, NGOs and designated Non-Financial Activities and Professions (NFAs) sectors with high vulnerability.

The study also denounces the lack of regulation, inspection, and strict supervision of NGO activities and accounts, in which it has not been possible to know their sources of funding as well as their relationship with the tax authorities.

As far as terrorist financing is concerned, the overall vulnerability is medium-high.

As for the financial inclusion sector, the report, whose funding and technical assistance came from the World Bank, identified five products and their respective risk, namely, the basic bank account is low risk; the prepaid card is low risk; the electronic money account is considered medium risk; the remittance service is medium risk; the bank agent is low risk.

In the field of recommendations, the report points out the forestry and wildlife surveillance, through good training of inspectors and the equipping of the sector with adequate and sophisticated technical means, training and continuous training of inspectors, equipping the inspection posts with half-materials and working conditions, encouraging legal ways of survival, through agriculture and other ways of generating employment, making people reduce their levels of involvement in crime, among other recommendations.