Banking Regulations and Compliance in Mozambique Tightened to Protect Consumers

The Banco de Moçambique has recently strengthened its regulations and supervision of credit institutions, financial companies, and other entities under its purview to ensure high standards of market conduct and protect financial consumers.

Background

In 2020, the Law on Credit Institutions and Financial Companies came into effect, outlining the rules of conduct that these institutions must observe when operating in the market. The Banco de Moçambique is responsible for laying down these rules through Notices and Circulars issued by the central bank.

Supervision and Inspections

The central bank conducts regular inspections to ensure compliance with these regulations. Whenever irregularities or non-compliance issues are identified, supervised entities are required to correct them through specific determinations. In cases of non-compliance, sanctions may be applied following legal proceedings.

Oversight Activities

The Banco de Moçambique’s oversight activities include:

• Analyzing the pricing of financial products and services to ensure fairness and transparency
• Reviewing advertisements for compliance with information duties and transparency requirements
• Ensuring that contractual terms and conditions comply with applicable legal and regulatory standards

Goals

The central bank’s efforts aim to promote financial education and literacy among consumers, while also preventing unfair business practices. With its strengthened regulations and supervision in place, Mozambique is well-positioned to ensure a safe and stable financial system for all stakeholders.

By tightening banking regulations and compliance, the Banco de Moçambique demonstrates its commitment to protecting consumers and promoting a healthy financial environment in Mozambique.