Mozambique Country Summary

FATF Status

Mozambique is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 21 February 2025

Since October 2022, when Mozambique made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime, Mozambique has taken steps towards improving its AML/CFT regime, including by implementing a risk-based supervision plan along with effective and proportionate sanctions, increasing financial intelligence sent to authorities and demonstrating the ability to identify TF cases. Mozambique should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) carrying out a risk assessment for NPOs in line with the FATF Standards and using it as a basis to develop an outreach plan.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Mozambique was undertaken in 2024. According to that Evaluation, Mozambique was deemed Compliant for 5 and Largely Compliant for 8 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Corruption remains a significant issue in Mozambique, highlighted by an alleged cartel that blocked agricultural exports, causing substantial losses for international companies. Despite some progress in anti-corruption reforms and legal changes aimed at improving the situation, the government continues to grapple with a history of corruption, including the notorious 'hidden debts' scandal. The judiciary and law enforcement are hindered by corruption, leading to a lack of accountability and impunity for organized crime, while civil society efforts to combat these issues face challenges due to limited support and press freedom.

Mozambique has significant economic potential due to its extensive coastline, deep-water ports, and rich natural resources, including coal and natural gas. However, the economy faces challenges such as high interest rates, corruption, and poor infrastructure, which hinder investment and growth. Despite these issues, the government has made efforts to improve the business environment through reforms and partnerships with international organizations.

Mozambique presents significant investment potential due to its extensive natural resources, deep-water ports, and favorable agricultural conditions. However, the investment climate is hindered by challenges such as corruption, high interest rates, poor infrastructure, and a workforce lacking advanced skills. Recent government reforms aim to improve the business environment, including a revised investment law that introduces new tax incentives and facilitates land use rights, although implementation regulations are still pending.