The Insurance Supervision Institute and the Bank of Mozambique (BM) are now working together to prevent and combat money laundering, terrorist financing and arms proliferation.

The two institutions signed a memorandum of understanding in Maputo yesterday, to be implemented by 2027.

The Chairman of the Board of Directors of the Insurance Supervisory Institute of Mozambique, Ester dos Santos, explained that the act is based on the duty of cooperation and sharing of information between the supervisory authorities laid down in the Law on preventing and combating money laundering and the financing of terrorism, proliferation of weapons of mass destruction.

The president also said that the agreement would improve supervision of the national financial system by sharing information.

Benedita Guimino, Director of the Financial Stability Department at the Bank of Mozambique, said that the agreement signed between the two institutions would allow for the sharing of information and mutual consultation, the exchange of experiences and joint actions, as well as assistance and technical support between the two institutions.

Guimino also believes that cooperation will contribute to the implementation of the action plan to remove Mozambique from the Financial Action Task Force's Grey List.

"With the materialization of this Memorandum of Understanding, both institutions will be able to standardize and consolidate their actions in the regulation and supervision of the financial sector and equip themselves with tools to keep up with the dynamics of new technologies and other related challenges," said the director of Banco de Moçambique.