Sunday, May 22, 2022

Mozambique Vulnerable to Money Laundering, Terrorism Financing


Of 125 countries assessed, Mozambique has the highest risk of money laundering and terrorist financing, according to a report issued by the Basel Institute of Governance on 19 April.

“Poor border controls and weak government institutions expose the country to cross-border crimes related to drugs and human trafficking.

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Mozambique is also vulnerable to other predicate offences including corruption, car theft and smuggling, robbery, cash smuggling, illicit trade in precious metals and stones, customs fraud and goods smuggling.

Related: Mozambique: Ex-Credit Suisse Banker Pleads Guilty in Mozambique Fraud

Mozambique has high risks associated with corruption, which is a pervasive problem in the country,” the report says.

“The country also fares poorly on Financial Transparency and Standards”.

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The report also notes that Mozambique is “listed among the US INCSR list of major money laundering countries.”

The score is based on 15 indicators in five areas: Quality of Anti-money laundering Framework, Bribery and Corruption, Financial Transparency and Standards, Public Transparency and Accountability, and Legal and Political Risks. With Mozambique as number 1 (highest risk), the United States is ranked 72. This is higher risk than Brazil (76) and South Africa (84).

Low risk countries include Portugal (107) and the United Kingdom (106).


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