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Mozambican Banks Fined Millions for Anti-Money Laundering Violations

Money LaunderingMozambican Banks Fined Millions for Anti-Money Laundering Violations

Several Mozambican banks have faced fines totaling 124.8 million meticais since 2020 for breaches related to anti-money laundering and terrorist financing laws. A government report on terrorist financing risks indicates that these penalties are now more effective due to increased fines under revised legislation.

The report highlights instances of the national financial system being used to transfer funds to individuals in terrorist-threatened areas, some of whom may have links to terrorists. Additionally, it notes transfers from abroad to regions with active terrorist threats, followed by cash withdrawals. Concerns are raised about the misuse of the banking system by individuals suspected of terrorism, as well as the involvement of international organizations and charities in the region, potentially facilitating money movements without proper beneficiary monitoring.

Moreover, the report warns of terrorists exploiting the region’s rich mineral and energy resources by selling them to licensed mining companies or integrating proceeds through informal economic activities. Despite existing controls, the financial sector remains vulnerable to criminal exploitation.

Cabo Delgado province has faced terrorist attacks for over six years, prompting a military response since July 2021 with support from Rwanda and the Southern African Development Community. Recent incidents have led to travel restrictions in the affected areas.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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