Mozambique’s government has announced the creation of a new Insurance and Pension Funds Supervisory Authority (ASFPM) as part of efforts to comply with the Financial Action Task Force (FATF) recommendations and secure removal from the FATF’s “grey list.” The decision was approved during a cabinet meeting in Maputo and will now be submitted to parliament for enactment.
The new authority will replace the existing Mozambique Insurance Supervisory Institute, aligning with the country’s Economic Acceleration Package. It aims to strengthen oversight of insurance operators and pension fund managers by implementing measures to prevent money laundering and terrorist financing. The government emphasized that this move supports transparency and full compliance with the FATF’s 40 recommendations, a crucial step toward restoring Mozambique’s reputation in international financial markets.
In addition, the ASFPM will facilitate alignment with international standards set by the International Association of Insurance Supervisors (IAIS) and the International Organisation of Pension Supervisors (IOPS), enhancing regulatory frameworks for insurance and pension funds.
At the same session, the cabinet approved a draft Legislative Authorization Law to modernize the Legal Regime for Insurance. This legislative reform introduces updated governance and management principles recommended by global insurance organizations. Key changes include establishing a customer ombudsman to expedite dispute resolution in insurance contracts, redefining risk distribution rules in reinsurance, expanding the scope of offenses in insurance operations, and strengthening related sanctions.
Mozambique’s authorities reported on May 15 that all FATF indicators linked to their 2022 inclusion on the grey list—due to weaknesses in combating money laundering and terrorist financing—have now been met. Luís Abel Cezerilo, national coordinator for Mozambique’s removal from the grey list, expressed optimism, stating that the country is awaiting final procedural steps before official delisting. He highlighted that Mozambique’s financial institutions and international reputation are expected to normalize, improving foreign investor confidence.
The final pending action involves submitting a list of Non-Profit Organizations handling significant funds, particularly in the Cabo Delgado region, where terrorist activity has been ongoing since 2017. Cezerilo affirmed that the FATF, as a reputable institution, will recognize Mozambique’s compliance during its upcoming September meeting, which will review the country’s progress alongside others in similar situations.
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