Mozambique exits FATF grey list

FATF’s decision to remove Mozambique from the grey list marks a step-change for cross-border finance. De-risking by correspondent banks had raised friction costs on trade and remittances; delisting reduces compliance overhang and should compress transaction times and fees as relationships normalise. The benefit is not automatic: banks must still evidence effective AML/CFT controls, but the signalling effect matters for sovereign and corporate risk premia.

For investors, the decision interacts with the LNG restart story, potentially lowering the cost of capital for ancillary infrastructure and supplier finance. It also improves the odds of multilateral support flowing on standard timelines, which supports reserve adequacy and FX liquidity.

Macro transmission will depend on how quickly local banks secure refreshed correspondent lines and whether supervision sustains on-site inspections and suspicious-transaction follow-through. The authorities’ next job is to lock in reforms—beneficial-ownership databases, fit-for-purpose KYC for SMEs, and harmonised reporting—to prevent regression.

Over the next two quarters, watch bank-fee schedules, SWIFT payment times, and the pipeline of trade-finance limits for hard evidence of reduced frictions. A clean AML/CFT bill of health also strengthens the sovereign’s case with rating agencies as LNG capex resumes and non-mining exports seek working capital.