- Mozambique also faces challenges in monitoring over 6,000 legally registered non-profit organisations.
By MOZTIMES
Maputo (MOZTIMES) – Mozambique lacks the capacity to identify cases of terrorism financing, conduct investigations, and initiate legal actions proportional to its terrorism financing risk profile.
This is the main weakness that emerged from a presentation delivered in person by a Mozambican government delegation on Thursday, 9 January, in Windhoek to experts from the International Cooperation Review Group (ICRG) of the Financial Action Task Force (FATF).
The Mozambican delegation was led by Deputy Attorney-General Ana Maria Gemo. Until recently, she served as Director of the Central Office for the Fight Against Corruption (GCCC). She is now responsible for the anti-money laundering and terrorism financing efforts within the Attorney-General’s Office (PGR).
The report presented in Windhoek outlined the latest progress on actions taken to remove Mozambique from the grey list for money laundering and terrorism financing by 2025. FATF added Mozambique to the list in October 2022 due to strategic deficiencies in preventing and combating money laundering, terrorism financing, and the proliferation of weapons of mass destruction.
In total, there are 11 areas, known as immediate outcomes, where Mozambique must demonstrate compliance and effectiveness with FATF recommendations in order to exit the grey list.
During the 2021 risk assessment, Mozambique was found to be non-compliant in all 11 measures. Since being placed on the grey list in October 2022, several reforms have been implemented, including national and sector risk assessments, legislative reforms, and training for professionals working on preventing and fighting money laundering and terrorism financing.
The reforms were coordinated by an Executive Coordination Committee for Mozambique’s Grey List Exit, comprising experts from institutions such as the Ministry of Finance, the Bank of Mozambique, the Attorney-General’s Office, the Supreme Court, and the Financial Intelligence Office (GIFiM).
While these reforms have improved several indicators compared to the 2021 situation, when the country was first placed on the grey list, two critical challenges remain that could prevent Mozambique’s removal from the list in 2025.
The main challenges are the country’s inability to identify terrorism financing cases, successfully conduct investigations, and initiate legal actions proportional to the terrorism financing risk profile, as outlined in the report presented in Windhoek.
The second limitation is Mozambique’s inability to monitor the accounts of the 6,253 registered non-profit organisations. Of these, 5,518 are associations, 594 are religious bodies, and 141 are foundations.
The greatest concern lies with organisations receiving outside funding. The law requires these bodies to update their records annually, during the month of their registration anniversary. However, many have yet to comply with this obligation, as they await their anniversary month.
Following the presentation of the report in Windhoek to ICRG experts, an evaluation is expected to determine, by June this year, whether Mozambique will exit the grey list. The announcement of countries leaving the grey list in 2025 will be made in October during the FATF General Assembly in Paris.
In Southern Africa, Angola, Tanzania, and South Africa are in a favourable position to be removed from the grey list this year. (MT)
