Mozambique Country Summary

FATF Status

Mozambique is 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 affecting various sectors, including agriculture, finance, and governance. The government has initiated some anti-corruption reforms and legal changes, but the effectiveness of these measures is hampered by entrenched corruption within the state apparatus, a lack of accountability, and the influence of organized crime networks that exploit the country's vulnerabilities.

Mozambique presents a mixed economic landscape characterized by significant investment potential and notable challenges. The country boasts a wealth of natural resources, including coal, natural gas, and precious minerals, alongside a favorable climate for agriculture and tourism; however, issues such as corruption, poor infrastructure, and a lack of skilled labor hinder its investment climate. Recent government reforms aimed at improving the business environment, including a revised investment law and partnerships with international organizations, reflect a commitment to economic recovery and development, yet ongoing security concerns, particularly in the Cabo Delgado Province due to insurgent activity, continue to pose risks to both domestic and foreign investors.