On October 11, 2013 enter into force Law No. 14/2013 of August 12, which implements preventive and prosecution measures regarding the use of the financial system and of non-financial entities for money laundering and terrorist financing in Mozambique. 

Within this scope, the Law establishes the obligations for the financial institutions as well as for the non-financial entities which include, among others: 

• i. The duty of identification of clients with whom the financial institutions and the non-financial entities establish business relations or when they suspect that the transactions performed by them are related to the crime of money laundering or terrorist financing;
• ii. Duty to communicate suspicious transactions to the Financial Intelligence Office of Mozambique;
• iii. Special control of certain transactions, namely movement of funds incompatible with the patrimony, the economic activity or the professional occupation and the financial capacity of the client;
• iv. Obligation to abstain from execution any operations related to those transactions.  

The new Law is applicable to any financial institutions and non-financial entities based in Mozambique as well as to its branches, agencies, offices, or any other form of representation, as well as to other institutions susceptible of engaging in acts of money laundering and financing of terrorism. 

Any violation to this Law is punished with fines of up to 8 (eight) million meticais in the case of companies and up to 3 (three) million meticais in the case of individuals, as well, with ancillary measures, such as, the revocation and suspension of the activity license of those financial institution.