Banking institutions in Mozambique have been fined a total of 124.8 million meticais due to breaches of legislation on money laundering and terrorist financing.
According to the National Assessment of Terrorist Financing Risks report, the sanctions imposed were considered proportionate, as a result of the revision of the Credit Institutions and Financial Companies Law, which increased the penalties.
The fines were the result of on-site inspections carried out between 2020-2023, with the banks penalized with fines published in the media and on the Bank of Mozambique (BdM) website.
The report also highlights the use of the national financial system to transfer funds in a fractioned manner to accounts of people with low incomes in terrorist threat areas, as well as transfers from abroad to regions with an active terrorist threat, followed by cash withdrawals.
In addition, there are reports of individuals suspected of involvement with terrorism using the banking system for transfers of insignificant amounts, and international organizations and charities in Cabo Delgado province moving large amounts without proper monitoring of the final beneficiaries.
The document also mentions that the region’s wealth of mineral and energy resources makes it possible for terrorists to raise money by selling these resources to licensed mining companies.
