Mozambique submits report to exit grey list

The Financial Action Task Force which monitors the flow of money.

By Ntombi Mhlongo

Mozambique is making significant efforts to exit the grey list. 

The country has reportedly submitted its first assessment report to the Financial Action Task Force (FATF), as part of the steps it has taken to leave the grey list.

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.

Mozambique 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.

Read More: South Africa added to grey list

Club of Mozambique News has reported that the ICRG will produce its assessment of Mozambique’s performance since the country was placed under surveillance by the FATF in October last year.

The media platform highlighted that to leave the grey list, Mozambique will have to carry out a national risk assessment for non-governmental organisations, install a system for the identification of the beneficial owner, and develop national and international cooperation actions regarding money laundering, and counter-terrorism by 2024.

The United States, European Union, and the World Bank are supporting Mozambique’s efforts to have its name removed from the list in the next two years.

On February 24 this year, the FATF announced that neighbouring South Africa has been added to its grey list of countries placed under scrutiny to implement standards to prevent money laundering and terrorism financing.

The greylisting of South Africa means that, although FATF does not require enhanced due diligence measures to be applied, some foreign banks, institutions, and organisations, like the European Commission, might impose stringent due diligence checks when dealing with South African entities including individuals, businesses, and banks.

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