Maputo — Mozambican President Filipe Nyusi believes that the country is working hard in order to eradicate money laundering, in line with the standards set by the Financial Action Task Force (FATF) in order to get off its "grey list'.
In 2022, Mozambique was placed on the Grey List of the FATF 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. Within this process, Mozambique is required to report within an established plan.
According to the President, who was speaking during the inauguration of three new courts in the central province of Sofala, in order to have the country removed from the grey list, the government is promoting international cooperation with other nations and specialized international organizations to deal with transnational organized crime networks.
"Among the main actions implemented are the drafting and application of specific laws against money laundering and terrorist financing, the creation of the Financial Intelligence Unit and ongoing training to identify and combat money laundering', Nyusi said.
The President explained that money laundering is a phenomenon with various ramifications that harms the Mozambican economy, and this goes through three phases, namely placement, circulation and integration.
"After the illicitly received goods or values are obtained in financial and non-financial circuits, they are placed in financial institutions through deposits and investments in profitable activities, as well as high-value goods', he said.
According to Nyusi, the circulation of goods and income occurs through multiple and repeated operations.
"It may occur through transfer of funds and simulated sales or proceeds of the goods acquired with the aim of distancing them from their criminal origin by eliminating traces of provenance and ownership. In terms of integration, the goods and income received are introduced into legal economic circuits by being used, for example, to purchase goods and services', Nyusi explained.
The President revealed that the FATF had acknowledged that Mozambique has complied with six immediate recommendations. However, he did not specify the recommendations in question.
"You may remember one of the occasions when we approached some (petrol) stations that were popping up all over the place. We spoke with a certain naturalness, but the result was that we started to see people fleeing. Sometimes people have a guilty conscience about what they are doing', he said.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He stressed that strict punishment of money laundering crimes and asset recovery through the courts are essential.
As of February 2024, there were 21 countries on the grey list. In addition to Mozambique, they included four other southern African countries (South Africa, Namibia, Tanzania and the Democratic Republic of Congo).
Countries on the grey list have agreed to increased monitoring, and to solving any strategic deficiencies in their regimes to counter money-laundering and financing of terrorism.
Countries that fail to address these problems might be transferred to the black list. Countries on the black list will be subject to enhanced due diligence, and other countries could be called to take measures against them to protect the international financial system. Currently the only countries on the black list are North Korea, Iran and Myanmar.
