Financial Crime World

Mozambican Regulator Touts Disciplinary Measures and Rights Representation

Maputo, Mozambique - The Ordem dos Contabilistas e Auditores de Moçambique (OCAM), the country’s leading accounting and auditing body, has made significant strides in establishing a robust disciplinary system to ensure accountability among its members.

Disciplinary System Fully Operational

The OCAM reports that its new online platform is now fully operational, allowing for efficient tracking of cases. The system incorporates all best practices outlined by the International Federation of Accountants’ (IFAC) Small and Medium-sized Entities (SMO) 6 framework. This ensures that punitive consequences are in place for non-compliance, maintaining accountability among members.

Administrative Court Established

The OCAM has also established an administrative court to handle appeals from disciplinary actions taken against its members. This move is a significant step towards upholding the rights of accountants and auditors in Mozambique.

Committee Members

The committee members are drawn from both within and outside the accounting profession, including retired practitioners and lawyers. This diverse representation ensures that all perspectives are considered in the decision-making process.

Record-Keeping and Tracking

The OCAM has implemented measures to enhance its record-keeping and tracking of cases, making it easier to monitor compliance with regulatory requirements.

Reception by Stakeholders

According to sources, the regulator’s efforts have been well-received by stakeholders, who view the reforms as a positive step towards strengthening accountability within the profession.

IFRS Adoption

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Mozambique has made significant progress in adopting International Financial Reporting Standards (IFRS). The country’s Commercial Code 2005 and Decree 70/2009 provide for the adoption of IFRS by large and medium-sized companies.

  • The Accounting System for the Business Sector (SCE) is based on IFRS, with a simplified chart of accounts for small companies.
  • Publicly traded companies are also required to comply with IFRS standards.

Standard-Setting Committee

The OCAM has drafted a proposal for an independent standard-setting committee to oversee the development and implementation of accounting standards in Mozambique. The association has received input from stakeholders and is awaiting approval from the Ministry of Finance.

  • The proposed committee would be responsible for reviewing, adjusting, interpreting, and updating the SCE, ensuring that it remains aligned with international best practices.

Sources

  • Ordem dos Contabilistas e Auditores de Moçambique (OCAM)
  • Commercial Code 2005
  • Decree 70/2009
  • ACIS, Practical Guide to General Accounting Plan for Small Business, September 2010.
  • Centro de Integridade Pública, Business Integrity Country Agenda: Assessment Report Mozambique, February 2016.
  • OCAM, SMO Action Plan, 2021.
  • Thomson Reuters, “Doing Business in Mozambique”, June 2012.
  • World Bank, Report on the Observance of Standards and Codes—Accounting and Auditing: Mozambique, June 2008.

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