The fraudulent use of the financial system to conceal or disguise illicit financial flows caused financial losses to the Mozambican state estimated at 1.887 billion meticais (US$26.4 million) in 2016, according to a report from the Attorney General’s Office (PGR).
In the report, which will be presented to the Mozambican parliament, the PGR says that suspected fraudulent uses of the financial system include situations such as the inflows of cash from criminal activity, such as misappropriation of state funds, abductions, human trafficking, trade of narcotics and psychotropic substances and parts of protected species.
The PGR also argues that loss of profit due to criminal activity has greater dissuasive power than restricting the freedom of offenders and it therefore suggests the creation of an institution for the recovery of criminal proceeds as recommended by international conventions, which has worked well in several countries.
“We continue to deal with fraudulent schemes involving circulation of large sums of money outside the financial system, fueling an informal circuit at home and abroad. Given that large amounts of money are involved in this type of crime, the PGR is working with the Bank of Mozambique to reinforce measures to control currency,” said the PGR document.
In the document quoted by daily newspaper NotÃicias, the PGR estimates that 10.5% of people trafficked in Mozambique have suffered sexual exploitation and 89.5% organ harvesting and forced labour.