Credit institutions in Mozambique have four months to apply new rules

25 March 2019

Credit and other institutions legally authorised to receive deposits in Mozambique have until 31 July to adopt new information rules decided by the country’s central bank.

The new Regulation on Information Responsibilities in the Area of Receipt of Deposits, approved by a central bank notice, already published in the country’s Official Gazette, Boletim da República, stipulates that institutions shall, in all deposit agreements that have been in force since 1 February 2019, make available standardised information sheets prior to the opening of the deposit account or the conclusion of deposit agreements, according to the Legis-PALOP+TL platform.

The central bank outlined that the information should be made available using standardised information for demand deposits (FIND) and for term deposits, deposits with a notice period and deposits with no early repayment (FINDP).

The FIND and FINDP must be made available via the Internet on the respective sites if this is the means of communication used to advertise the deposits.

They must also respect the information requirements in the negotiation, conclusion, and execution of deposit agreements, “in a complete, true, current, clear, objective and readable form,” according to the Legis-PALOP+TL legal database.

The new rules must be applied under penalty of fines ranging from 40 million meticals to 1 billion meticals, under the terms of the Law of Credit Institutions and Financial Companies.

The central bank also sets out the institutions’ obligation to provide a copy of the general conditions of the contract before opening a deposit account or entering into deposit agreements.

They are also required to specify in the deposit agreement the particulars contained in the standard information sheet applicable to them, except in the case of authorised overdrafts and the historical changes recorded in the respective indexer, in the case of variable rate deposits.

Finally, according to Legis-Palop+TL, institutions should also provide a monthly or annual statement with information on all debit and credit transactions made in their deposit accounts and additional information on interest in all applicable cases. (Macauhub)