Mozambique has just submitted its first assessment report to the Financial Action Task Force (FATF), as part of the steps the country is taking to leave the “grey list”, according to a source at the Ministry of Economy and Finance (MEF).
The FATF is an entity that promotes international policies to combat money laundering and the financing of terrorism and the proliferation of weapons of mass destruction.
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The country was placed on the FATF’s Grey List on October 21, 2022 for an observation period of two years (2022-2024) by the International Cooperation and Review Group (ICRG), an entity that brings together experts who monitor the progress of countries in matters related to money laundering and terrorist financing, and within this process Mozambique is required to report within an established plan.
According to the source, cited in Monday’s issue of the Maputo daily “Notícias”, the ICRG will produce its assessment on Mozambique’s performance since the country was placed under surveillance by the FATF in October last year.
In order to leave the grey list, Mozambique will have to carry out by 2024 a national risk assessment for non-governmental organizations, install a system for the identification of the beneficial owner, and develop national and international cooperation actions regarding money laundering, and counter-terrorism.
The United States, the European Union, and the World Bank are supporting Mozambique’s efforts to have its name removed from the list in the next two years.
National partners have also been suggesting to the relevant bodies, notably the Bank of Mozambique, the Ministry of Economy and Finance (MEF), and the Justice Ministry, to analyze the role of the judiciary in preventing and combating the phenomenon.
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Similarly, they also suggest analyzing the role of non-financial institutions and the application of sanctions.