Mozambique Country Summary

FATF Status

Mozambique is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

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.

Mozambique faces significant challenges related to crime and corruption, with widespread issues impacting both governance and economic development. The country has been identified as a hub for various illicit activities, including human trafficking, arms trafficking, and drug smuggling, while systemic corruption within the government undermines efforts to combat these issues and fosters an environment of impunity for criminal actors.

Mozambique presents a mixed economic and investment climate characterized by significant potential and notable challenges. The country's extensive coastline, deep-water ports, and rich natural resources, particularly in the energy sector, offer substantial opportunities for U.S. investment, especially with recent developments in the Rovuma Basin gas fields. However, the investment landscape is marred by political instability, corruption, high interest rates, and a lack of infrastructure, alongside a workforce with low education levels and ongoing security issues related to an insurgency in the northern Cabo Delgado Province, which collectively hinder foreign direct investment and economic growth.