The Mozambican government announced on Tuesday (11) that significant progress has been made in the fight against money laundering and terrorist financing, bringing the country closer to removal from the Financial Action Task Force’s (FATF) Grey List.
Government’s Progress and Optimism
According to Inocêncio Impissa, spokesman for the Council of Ministers, Mozambique has already met 25 out of 26 FATF action items, with only the updating of the database of non-profit civil society organisations remaining. This progress is attributed to the government’s political commitment and improved supervision, investigation, and prosecution capabilities.
A FATF team is set to visit Mozambique in mid-2025 to audit reforms and assess their effectiveness. The government anticipates being removed from the Grey List by the first quarter of 2025.
Concerns Raised by the Centre for Public Integrity (CIP)
Despite government confidence, the Centre for Public Integrity (CIP) has raised concerns regarding Mozambique’s ability to achieve this goal within the expected timeframe. The organisation points to persistent high risks of money laundering and the challenge of demonstrating that adopted measures are sustainable in the long term.
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Key concerns include:
- Mozambique’s Basel AML Index ranking: The country currently ranks 12th in global money laundering riskwith a score of 7.15%, showing slight improvement from 2023’s 6th place (7.88%).
- Transparency issues in the ‘Stop Money Laundering’ operation: Launched in 2024 by the Attorney General’s Office, the operation led to seizures of property across Maputo, Matola, Nacala, and Nampula, but detailed results remain undisclosed.
- Pending FATF requirement: The only remaining recommendation, updating the civil society organisations database, is critical for monitoring potential terrorist financing risks. Failure to address this could jeopardise Mozambique’s delisting.
Implications of Remaining on the Grey List
Mozambique has been on the FATF Grey List since October 2022, resulting in:
- Stricter international financial scrutiny.
- Increased surveillance on cross-border transactions.
- Limitations on foreign investment.
While the government remains committed to fulfilling the last requirement, CIP warns that credibility and transparency in implementing reforms will be decisive in Mozambique’s final evaluation. The country’s ability to demonstrate lasting and verifiable improvements will ultimately determine whether it exits the FATF Grey List in 2025.
