share
Business
Mozambique: Sale of vehicles / payment in cash increases risk of money laundering – AIM report
08, Dec 2022
96 Views
Informality and payment in cash to purchase vehicles have been increasing the risk of money laundering in Mozambique, which is why it is necessary to strengthen mechanisms to control car sales centres.
“It is necessary to strengthen the control of car sales centres that proliferate in our society, because they are involved in fraud and tax evasion”, said the Director of Legal Services and Cooperation of the Mozambican Financial Intelligence Office (GIFIM), Paulo Munguambe, on Monday at the launch of International Anti-Corruption Day.
Speaking to the audience on a panel on “The Risk of Money Laundering Associated with the Sale of Used Vehicles and Preventive Measures”, Munguambe said that Mozambique is “on the grey list” because it does not respond to international measures to combat money laundering.
Using the National Risk Assessment Report (2020- 2021), Munguambe said “this sector is vulnerable due to lack of regulation and control, and in this case, the country is at high risk of money laundering. This activity generates more resources to be laundered.
“Mozambique, in the framework of international obligations and recommendations to prevent and combat corruption, has a low rating. That is, Mozambique has a low level of effectiveness” the director said. For better oversight, according to Munguambe, there is a need to assess the risks of money laundering and the financing of terrorism in order to understand the vulnerabilities, strengths and weaknesses of these phenomena.
“We have to improve the system of effectiveness, and, in this case, we have to pay attention to the buying and selling of vehicles”, he said, recalling that “the rules say that the authorities must carry out a national assessment of the risks.”
The new law on Prevention of Money Laundering, Terrorist Financing and Weapons of Mass Destruction, argues the director, will strengthen and establish accurate rules for the sector.
“The law states that all sellers of vehicles must comply with these requirements: do due diligence and know the customer properly”, he stressed.
Also according to Munguambe, Mozambique currently has 1,414 business entities engaged in the sale of vehicles, of which 16 are dedicated to the sale of new vehicles (zero kilometre) and 1,398 to the sale of used cars.
“The launderers use the luxury vehicles, sold by the 16 dealerships, to keep money. They buy the luxury vehicles, which do not depreciate easily, to disguise it. Then they sell them,” he said, adding that money laundering is always related to a previous crime that generates repercussions that need to be camouflaged.
According to Munguambe, for better monitoring of money laundering cases, international regulators have to know “how many inspections, how many recommendations and how many sanctions have been applied in Mozambique against money launderers.”
“All this is organized in statistics to show that there is effectiveness in our system”, he stressed
Source: AIM
share Share now
Related Posts
Business
Mozambique and Pakistan sign MoU on trade and investment
08, Dec 2022
82 Views
Business
CPLP: New head of business confederation calls for development bank
02, Dec 2022
84 Views
Business
Mozambique: 50 young Maputo entrepreneurs receive 1.5 million meticais each
30, Nov 2022
81 Views
Business
Mozambique: MSMEs cannot pay what credit institutions ask for
29, Nov 2022
90 Views
Business
Mozambique: Companies surprised by approval of law that obliges them to contribute to professional
28, Nov 2022
77 Views
Business
Mozambique: Private companies must pay up to 1% of their monthly payroll to fund professional educa
28, Nov 2022
70 Views
Business
Mozambique cannot abstain from industrialisation – Minister Moreno in Niamey
25, Nov 2022
75 Views
Business
Mozambique: Medimoc and Teuto resume partnership – Media Release
25, Nov 2022
79 Views
Business
CoWork Lab celebrates 10 years in Mozambique
24, Nov 2022
100 Views
Business
Mozambique: Entrepreneurship in combating terrorism
24, Nov 2022
69 Views
Business
Sasol Mozambique delivers Inhassoro Professional Training Centre – Photos
23, Nov 2022
72 Views
Business
Nyusi opens Inhassoro Professional Training Centre, defends partnerships with productive sector
23, Nov 2022
76 Views
Business
Watch: Standard Bank Mozambique appoints Esselina Macome as Chair of the Board of Directors
23, Nov 2022
87 Views
Business
Nyusi invites more Portuguese businesses to invest in Mozambique
21, Nov 2022
76 Views
Business
Mozambique: Nyusi invites Finnish businesses to invest – AIM report
21, Nov 2022
90 Views
Business
CTA: More than 20 Mozambican entrepreneurs join business mission to Finland
17, Nov 2022
106 Views
Business
Workshop on ‘Skills Development and Professionalism in the Maputo Transport Corridor’ – Press Relea
16, Nov 2022
100 Views
Business
Mozambique – Finland Business Forum
11, Nov 2022
101 Views
Business
Belgium pledges climate ‘loss and damage’ funding for Mozambique
11, Nov 2022
72 Views
Business
Mozambique: Germany offers almost €200M for social, economic development
11, Nov 2022
82 Views
Business
Paratus Mozambique expands northward – PR
02, Nov 2022
85 Views
Business
Mozambique: CTA presents its position on the PAE to the World Bank
28, Oct 2022
83 Views
Business
Mozambique Chamber of Commerce wants to connect Mozambican and Thai entrepreneurs
27, Oct 2022
120 Views
Business
Tropigalia shares to be sold on stock market, in a first for a private Mozambican company – Photos
27, Oct 2022
106 Views
Business
Mozambique: M-Pesa and FARMAC sign MoU
27, Oct 2022
100 Views
Business
Mozambique: REVIMO posts 2021 results, 7% below projections
27, Oct 2022
125 Views
Business
Mozambique: 92% of fisheries production comes from artisanal fishers
27, Oct 2022
110 Views
Business
Mozambique: CCM and IPEME promote MSMEs training in quality certification
27, Oct 2022
95 Views
Business
Mozambique: Businesses call for wider tax breaks
27, Oct 2022
92 Views
Business
The IDEA Project launches in Mozambique the first edition of the Innovation Days Series
27, Oct 2022
131 Views
Business
UAE businessmen have “enormous interest” in investing in Mozambique
27, Oct 2022
73 Views
Business
Fidelidade Impar acquires Tranquilidade Moçambique portfolio of policies
27, Oct 2022
105 Views
Business
Raxio Group building first independent data storage centre in Mozambique – Photos
27, Oct 2022
76 Views
Business
Nigerian investment in Mozambique tops US$44 million in 5 years, expected to grow in the near futur
27, Oct 2022
118 Views
Business
Mozambique to cut profit margins on essential products
27, Oct 2022
95 Views
Business
Mozambique: Prawns fishing closed for four months
27, Oct 2022
72 Views
Business
Mozambique: Cornelder invests in cutting-edge technology for Port of Beira access control
27, Oct 2022
88 Views
Business
Mozambique: CTA presents its position on the PAE to the World Bank
27, Oct 2022
78 Views
Business
Mozambique looking at full membership in the GECF – Gas Exporting Countries Forum
26, Oct 2022
101 Views
Business
UAE businessmen have “enormous interest” in investing in Mozambique
26, Oct 2022
61 Views
Business
DP World promises to increase investment in Mozambique
26, Oct 2022
83 Views
Business
Mozambique: Private sector calls for lower interest rates
01, Aug 2022
119 Views
Business
FNB Mozambique poised to make an impact in the local market
01, Aug 2022
99 Views
Business
DP World’s Imperial obtains approval for acquisition of 100% stake in Africa-based J&J Group
01, Aug 2022
98 Views
Business
Machipanda border post to operate 24/7 from December
01, Aug 2022
88 Views