What You Need to Know
The Bank of Mozambique has issued a warning regarding the rise of fraudulent financing schemes linked to investment projects and donations. These schemes involve entities operating outside the formal financial system, often requiring advance payments and using deceptive practices. The central bank advises caution and thorough verification of any financing proposals to protect citizens and maintain
Africa-Press – Mozambique. The Bank of Mozambique (BdM) has warned of the proliferation of fraudulent schemes associated with purported financing for investment projects and donations in the country, involving entities operating outside the formal financial system and using deceptive practices to obtain advance payments.
In a statement accessed by AIM, the BdM said it has been “recording the activities of entities that present proposals with typical characteristics of fraud,” notably the indication of unrealistic amounts, the use of transfer channels not recognized by the national financial system—often referred to as coded—and the requirement of advance payments as a condition for the alleged release of funds.
According to the note, such proposals also include the issuance of transfer documents not recognized by commercial banks, as well as the provision of unclear, contradictory, or incomplete information, factors that increase the risk of financial losses for citizens, companies, and institutions.
In light of this situation, the central bank does not recommend making advance payments as a prerequisite for unlocking funds allegedly originating from abroad, stressing that such practice constitutes a strong indication of fraud.
Accordingly, the BdM requires strict compliance with legal instruments that establish rigorous obligations for risk assessment, identification, verification, and due diligence in the context of the prevention and combating of money laundering, terrorism financing, and the proliferation of weapons of mass destruction, as a way of mitigating risks.
Meanwhile, the central bank recommends that “potential beneficiaries verify the credibility of financiers or donors by analyzing their respective risk profiles, gathering information on similar investments carried out in other countries, assessing ongoing projects within the national territory, confirming prior use of the national financial system for the transfer of funds, and obtaining information on any local partners or representatives.”
The BdM further warns that any financing or donation proposal showing signs of irregularities should be analyzed with heightened caution, in order to mitigate the occurrence of scams and other fraudulent acts that jeopardize the stability of the financial system and the confidence of economic agents.
The Bank of Mozambique plays a crucial role in regulating the country’s financial system and ensuring economic stability. In recent years, the rise of fraudulent schemes has posed significant challenges, particularly as the nation seeks to attract foreign investment and foster economic growth. These scams not only threaten individual investors but also undermine trust in the financial system as a whole.
Historically, Mozambique has faced issues with financial fraud, often exacerbated by a lack of awareness among the public regarding legitimate investment practices. The central bank’s recent warnings reflect an ongoing effort to combat these fraudulent activities and protect the interests of
