In a significant move, Mozambique and Rwanda have agreed to exchange crucial information to combat money laundering and terrorism financing.
The Memorandum of Understanding, signed last week in Kasane, Botswana, signifies a commitment to enhance cooperation between their financial intelligence agencies, the FIC of Rwanda and the GIFIM of Mozambique.
This agreement aims to facilitate the exchange of financial intelligence, bolster coordination, and improve the efficiency of efforts to combat money laundering, terrorism financing, and related criminal activities. Both countries will share information spontaneously or upon request, aiding investigations into suspected financial crimes.
Mozambique’s Vice-Minister of Economy and Finance, Carla Louveira, highlighted her country’s dedication to cooperate with other nations in combating financial crimes and moving out of the international “grey list” maintained by FATF. Mozambique is actively seeking reclassification on over 15 FATF recommendations, backed by recent legislative measures and improved coordination mechanisms.
The Kasane meeting focuses on discussing mutual evaluation reports and assessing progress in implementing FATF’s recommendations. Mozambique hopes to see immediate approval and publication of nine recommendations. Additionally, it has requested the first assessment for reclassification on more than 15 recommendations, with evidence of effective implementation expected between April and October next year.
These collaborative efforts, alongside recent legislative changes, strengthen Mozambique’s resolve to combat money laundering and terrorism financing. These changes include simplified identification and risk verification measures for entities, along with specific financial sanctions related to terrorism. These laws are crucial for Mozambique’s bid to exit the FATF “grey list” and avoid potential adverse consequences for its financial relationships and capital inflows.
Mozambique and Rwanda’s joint commitment to combat financial crimes signifies a positive step towards regional financial security. This partnership will not only enhance their capacity to address money laundering and terrorism financing but also benefit the broader global financial system.