By Stélvio Martins
Maputo (MOZTIMES) – Mozambique is running serious risks of being regarded as a refuge for criminals practicing illicit acts in the financial area, because it has not taken concrete actions to combat this evil, according to specialists in the matter.
For example, the illegal credit application "Mz Cash", operated by Visioncred, Lda, is challenging the supervision of the Bank of Mozambique (BM). There are concerns that this platform, which has been available in Play Store for more than six months, is linked to money laundering and terrorism financing. It thus threatens to perpetuate the inclusion of Mozambique on the grey list of the Financial Action Task Force (FATF).
“Mz Cash" charges exorbitant interest rates, collects personal data such as names, addresses and photographs, and uses the M-Pesa mobile bank to grant loans. It uses coercive debt collection methods, including visits to the homes of clients before the payment deadline has expired, which has led to on-line denunciations, and exposes risks to the safety of users.
This practice, according to specialists, underscores the fragility of the country’s system of financial inspection. The BM recognizes the problem and says, in a document in our possession, “There is a growing proliferation of unlicensed entities that are undertaking activities that are reserved exclusively for financial institutions”.
History of fraudulent schemes
"Mz Cash" is not an isolated case. In 2022, Vision Service, Soluções Financeiras + 3000, a company with similar practices, was fined after a lawsuit initiated by the BM. Despite this, Visioncred, the owner of "Mz Cash", is operating without a licence and below the radar of the regulatory body.
In an e-mail sent to our newsroom, the BM admits that “VisionCred, like the application MZcash, is not licensed by the Bank of Mozambique”. It says it has no knowledge of its existence.
Visioncred, registered in the official gazette (the Boletim da República), on 26 January 2024, as a financial consultancy company, contradicts its mission by operating as an illegal credit entity.
According to the BM, only licensed institutions may operate in this sector.
“The law subjects the granting of credit to the principle of exclusivity, in that only credit institutions, financial companies, micro-credit operators, and savings and loans organisations may exercise professionally the activity of granting credit, regardless of the channel used for this”, says the BM statement.
Challenges and Impacts
The economist Egas Daniel, warns that the legal and technological gaps in the country allow the proliferation of schemes like this.
"The fact that Mozambique is still on the FATF grey list reflects the weakness in implementing the laws and the incapacity to track illicit flows," he states.
The Mutual Assessment report of 2022 points to technological delays as one of the main obstacles. Outdated tools make it difficult to identify sophisticated financial crimes and compromise transparency and the fight against money laundering.
Urgent solutions
The Bank of Mozambique stresses the need for collaboration between financial institutions, the bodies of justice and citizens to strengthen supervision and promote financial inclusion. The economist Egas Daniel stresses that strict control measures are essential to reverse this trend.
Without concrete actions, Mozambique runs the risk of strengthening its reputation as a haven for illicit activities, thus compromising its financial stability and international reputation. (ST)
