Banco de Moçambique Imposes Heavy Penalties on 11 Financial Institutions

Maputo - The Central Bank of Mozambique, Banco de Moçambique, announced significant penalties against 11 financial institutions in the country for violation of prudential, exchange rate, and anti-money laundering and counter-terrorism financing regulations between June 2021 and August 2022.

Financial Institutions Charged

The financial institutions charged include:

• Six credit institutions
• One financial company
• Four microfinance operators

The identities of these institutions were not disclosed in the communiqué.

Fines and Infractions

The Central Bank imposed fines for infractions under different legislations:

1. Law No. 20/2020 of December 31 – Law on Credit Institutions and Financial Companies
2. Law No. 15/99 of November 1, as amended by Law No. 9/2004 of July 21 – Law on Credit Institutions and Financial Companies
3. Law No. 11/2009 of March 11 – Foreign Exchange Law
4. Law No. 14/2013 of August 12 – Anti-Money Laundering and Counter-Terrorism Financing Law

The precise figures and reasons behind the fines were not provided in the communiqué, but a more detailed report was promised to be forthcoming.

Ongoing Commitment to Regulatory Compliance

This mass penalty comes as part of the ongoing commitment by the Central Bank to ensure the highest level of regulatory compliance among financial institutions in Mozambique. This approach is in line with the Bank’s stated objective to safeguard the integrity and stability of the financial sector and to protect consumers from potential risks.

Impact on Finances and Reputations

It remains to be seen how the penalties will impact the finances and reputations of the implicated entities.

No Clarification from the Central Bank

For further information or clarification, financial news outlets reached out to the Central Bank, but they have not received any response at the time of publishing this report. Stay tuned for more updates as new information emerges.