Mozambique -- Travel Rule Implementation Regulatory Overview

Based on the latest available information, including the Mutual Evaluation Report by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), Mozambique has not yet adopted or implemented specific regulations for Virtual Assets (VAs) or Virtual Asset Service Providers (VASPs), including the FATF Travel Rule.

The primary reference for Mozambique's AML/CFT framework, particularly concerning its adherence to FATF recommendations, is the ESAAMLG 3rd Round Mutual Evaluation Report of Mozambique, adopted in April 2021.

Here's a breakdown of the status:

1. Whether Adopted:

   • No, the FATF Travel Rule for VASPs has not been specifically adopted or implemented in Mozambique.
   • The ESAAMLG report explicitly states that Mozambique had not yet identified, assessed, and mitigated the ML/TF risks associated with virtual assets. It noted that the existing AML/CFT legal framework (Law No. 7/2012, of February 8, and its Regulations) does not explicitly cover VAs or VASPs.
   • Therefore, there is no specific legislation or regulatory guidance in place that mandates the Travel Rule for VASP transactions.
   • Reference: ESAAMLG 3rd Round Mutual Evaluation Report of Mozambique (April 2021) - available at https://www.esaamlg.org/reports/Mutual-Evaluation-Report-of-Mozambique.pdf (See Section 4.5.2 "Recommendation 15 – New Technologies" and related sections concerning Rec. 16 for VAs).

2. Effective Date:

   • Since the Travel Rule has not been adopted for VAs/VASPs, there is no effective date for its implementation in Mozambique.

3. Threshold Amounts:

   • As there's no specific regulation for VAs/VASPs, there are no defined threshold amounts for the Travel Rule. The FATF standard typically suggests a threshold of USD/EUR 1,000 for transfers of virtual assets, but this is not applicable in Mozambique's current regulatory vacuum for VAs.

4. Which VASPs Are Covered:

   • Currently, no VASPs are explicitly covered by a dedicated regulatory framework in Mozambique for AML/CFT purposes, including the Travel Rule.
   • The ESAAMLG report highlighted this as a significant deficiency, stating that "Mozambique has not assessed and understood the ML/TF risks associated with new technologies, including virtual assets, and has not regulated or supervised VASPs for AML/CFT purposes."

5. Technical Implementation Requirements:

   • Given the lack of regulation, there are no prescribed technical implementation requirements for the Travel Rule in Mozambique.

6. Penalties for Non-Compliance:

   • As there is no specific legislation requiring VASPs to implement the Travel Rule, there are no specific penalties for non-compliance with the Travel Rule by VASPs.
   • General AML/CFT laws (such as Law No. 7/2012) exist in Mozambique and impose penalties for non-compliance on covered entities (banks, financial institutions, etc.). However, since VASPs are not explicitly defined or covered as reporting entities under this existing framework for VA-related activities, these penalties would not directly apply to Travel Rule violations by VASPs. The absence of a specific framework for VASPs leaves a significant regulatory gap.

Summary:

Mozambique is in the early stages of addressing virtual asset regulation from an AML/CFT perspective. The country has not yet developed specific legislation or guidance to regulate Virtual Assets or Virtual Asset Service Providers (VASPs) as per FATF Recommendations, meaning the Travel Rule for VASPs is not implemented. This was a key finding in its 2021 ESAAMLG Mutual Evaluation Report, which highlighted the need for Mozambique to assess VA risks and establish a regulatory and supervisory framework for VASPs.