Mozambique has already complied with 18 recommendations for removal from the grey list • 360 Mozambique

The Executive Committee for the Coordination of Policies for the Prevention and Combating of Money Laundering and Counterterrorism announced on Friday (16) that the country has already fulfilled 18 recommendations to get off the Financial Action Task Force (FATF) grey list.

“Mozambique has received a total of 26 recommendations from the FATF, of which it has already implemented 18. As an organization, we are satisfied with the results achieved and we guarantee that the rest will be approved shortly at a meeting in Brussels,” said the institution’s coordinator, Luís Cezerilo.

In July, Mozambique’s President Filipe Nyusi said the country was working “hard” to eradicate money laundering and meet the standards recommended by the FATF in order to get off the grey list as soon as possible.

According to the Head of State, the government promotes cooperation with countries and specialized international organizations to better deal with transnational organized crime networks. He warns that the money laundering policy has several consequences that are harmful to the economy.

“Among the key actions carried out are the drafting and implementation of specific laws against money laundering and terrorist financing, the establishment of the Executive Committee for the Coordination of Regulatory and Supervisory Authorities, the Financial Intelligence Service and continued training to identify and combat these illegal activities,” he described.

The statesman explained that illegal activities go through three stages: placement, circulation and integration. ‘Once the illegally received goods or values ​​are obtained in the financial and non-financial circuits, they are placed, through deposits, in financial institutions and investments in profitable companies. The circulation of goods and income occurs through multiple and repeated operations, for example, the transfer of funds and simulated sales,’ he clarified.

“In terms of integration, the goods and income received are brought into legal economic circuits through their use, for example in the acquisition of goods and services,” he added.

He revealed that the FATF acknowledged that Mozambique was complying with the recommendations. ‘Strict punishment of money laundering and terrorist financing offences by the courts is essential to deter this practice.’

In a publication, Further Africa reported that the government has determined that companies active in the real estate and automotive sectors must now draw up a ‘Suspicious Transaction Report’, with the aim of combating money laundering and the financing of terrorism.

‘Entities engaged in real estate brokerage, the (re)sale of real estate, construction companies engaged in the direct sale of real estate and companies engaged in the (re)sale of new and used vehicles are required to appoint a reporter who is responsible for reporting suspicious transactions.

“This mandate is in accordance with the law that establishes the legal regime and preventive measures against money laundering, the financing of terrorism and the proliferation of weapons of mass destruction,” he explained, according to a directive from the Mozambican Financial Intelligence Service (GIFIM).

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