Mozambique’s Financial Institution Compliance Policies Under Scrutiny
The Banco de Moçambique has launched a campaign to ensure the highest standards of market conduct among credit institutions and financial companies operating in Mozambique. This move is aimed at protecting financial consumers and promoting financial education and literacy.
Background
According to sources, the bank has laid down strict rules of conduct that all supervised entities must adhere to when operating in the market. These rules are outlined in Notices and Circulars issued by the Banco de Moçambique, which are based on provisions of Law no. 20/2020.
Regulatory Oversight
The bank’s regulatory body is responsible for overseeing the operations of credit institutions, financial companies, and microfinance operators. Inspectors will be analyzing compliance with regulations regarding:
- Pricing
- Advertising
- Contractual terms and conditions for financial products and services
Consequences of Non-Compliance
In cases where irregularities or non-compliance are identified, supervised entities are required to take corrective action within a specified timeframe. Failure to comply may result in sanctions being imposed after prior initiation of legal proceedings.
Guidelines and Notices
The bank has outlined specific guidelines for each area, including:
- Notice No. 3/GBM/2018: Advertisements by credit institutions and financial companies must comply with information and transparency duties across various channels.
- Notice No. 8/GBM/2021: Guidelines for the design and drawing up of contractual conditions for financial products and services, ensuring that institutions adhere to applicable legal and regulatory standards.
Impact and Commitment
The move is seen as a major step towards promoting financial stability and protecting consumers in Mozambique’s banking sector. The bank has pledged to maintain high standards of conduct supervision to ensure the integrity of the financial system.
By implementing these policies, the Banco de Moçambique aims to promote a culture of compliance and responsibility among credit institutions and financial companies operating in Mozambique, ultimately benefiting financial consumers and promoting financial education and literacy.