Africa-Press – Mozambique. Mozambique’s deputy minister of the economy and finance on Friday pointed to the government’s risk assessments on terrorist financing and legislative changes as “proof of the country’s commitment” to getting off the FATF’s international “grey list”.
“Mozambique is committed to cooperating with all nations, especially the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG), and bilaterally in preventing and combating money laundering and terrorist financing in accordance with the recommendations of the FATF (Financial Action Task Force),” said Carla Louveira, speaking to the media on the sidelines of the ESAAMLG meetings, which took place in Kasane, Botswana, from 4 to 8 September.
According to Louveira, the carrying out of risk assessments in the sector of “designated non-financial activities and professions”, the approval of laws to prevent and combat money laundering and the revision of the law on combating terrorism and the proliferation of weapons of mass destruction “are proof of the commitment” of the country, which has already requested the reclassification of another 15 recommendations made by the FATF in order to get off the international “grey list”.
“The government has also taken the decision to strengthen coordination and communication mechanisms with the creation of the Executive Coordination Committee chaired by the minister of the economy and finance, with the aim of coordinating the actions to be taken (…) and mitigating the risks identified, as well as implementing the complemented set of actions set out in the Action Plan agreed with the FATF,” said Carla Louveira.
The Kasane ESAAMILG meetings [23rd Council of Ministers and 46th Task Force of Senior Officials Meeting] aimed to discuss and approve the mutual evaluation report and assess the progress made by ESAAMLG member states in implementing the FATF’s 40 recommendations, of which Mozambique hopes that “the nine re-evaluated ones will be approved and published” immediately.
The government of Mozambique also requested at this meeting the first assessment of the reclassification of 15 more recommendations, as a result of the recent approval by parliament of legislation to combat money laundering and terrorist financing, trying to resolve “the remaining deficiencies identified in the 2019 assessment”.
Between April and October next year, Mozambique will still have to present “evidence” that the new legislation is being applied by the country.
At this meeting in Kasane, Mozambique also presented a study on the characteristics of money laundering in the trade of products of wild animal origin, “showing those present how people use poaching and the slaughter of animals to launder money”.
In August, the Mozambican parliament approved, by consensus and at first reading, legal changes that strengthen the prevention and fight against money laundering and terrorism.
The text of the amendments advocates simplified measures for identifying and verifying risks of money laundering and terrorist financing by financial and non-financial entities.
The amendments also introduce specific financial penalties for terrorism.
In justifying the relevance of the two laws, the minister for justice, constitutional and religious affairs, Helena Kida, pointed out at the time the importance of the approved legislation for getting the country off the FATF’s “grey list”, an instrument that measures the country’s ability to combat this type of crime.
The consequences could result in banks reducing or cutting their relations with clients resident in high-risk jurisdictions, investors withdrawing from Mozambique, a reduction in the flow of payments between the country and abroad and a decline in the flow of capital.
Helena Kida on the same occasion stressed that the approval of the laws is part of the two-year “action plan” agreed with the FATF for the “removal of Mozambique from the grey list”.
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