CONDUCT SUPERVISION

Objectives

The Banco de Moçambique (BM) is responsible for supervising the conduct of credit institutions, financial companies and other institutions under their purview.  In light of this mission, the BM shall ensure high standards of market conduct of credit institutions and financial companies (ICSF) and other institutions under its supervision purview, in the relationship with financial consumers, dissemination and marketing of financial products and services, so as to ensure the protection of financial consumers and promote financial education and literacy.

Regulation

The Banco de Moçambique lays down rules of conduct that credit institutions, financial companies and other institutions under its supervision purview must observe when operating in the market.

These rules are laid down by Notices and Circulars, in light of the provisions of Law no. 20/2020, of December 31 - Law on Credit Institutions and Financial Companies.

Inspection

The Banco de Moçambique shall oversee the operations of credit institutions, financial companies and other entities under its supervision purview, namely, credit institutions and financial companies and microfinance operators. Insurance companies, pension fund management companies and real estate investment companies are not covered by Banco de Moçambique's supervision.

In this activity, whenever irregularities or situations of non-compliance are identified, the institution concerned is required to correct them, through specific determinations without prejudice to the application of sanctions by prior initiation of legal proceedings.

The Banco de Moçambique oversees the information that the supervised entities are required to submit for approval by:

Pricing: analyzing the compliance and reasonableness of commissions and charges proposed by credit institutions and financial companies whenever they intend to introduce or change the price of a particular financial product or service (registration/ C).

Advertising: analyzing the compliance with information and transparency duties in advertisements of credit institutions and financial companies, in the various forms and channels (television, radio, newspaper, posters, internet, brochures, social media and others) - Notice No. 3/GBM/2018, of April 18.

Contractual terms and conditions for financial products and services: ensuring that, in the design and drawing up of the contractual conditions of financial products and services, institutions comply with the applicable legal and regulatory standards, such as the duties of information, transparency, non-discrimination, and balance of the interests of parties - Notice No. 8/GBM/2021, of December 22.

MARKET CONDUCT AND CONSUMER PROTECTION

Inspection Actions

The Banco de Moçambique shall carry out on-site inspections regarding market conduct to institutions under their supervision purview. These institutions may constitute central services and branches of financial institutions.

The Banco de Moçambique also carries out off-site inspections based on information reported by financial institutions and that available on their websites.

 

Complaints

The Banco de Moçambique shall analyze financial consumer complaints against credit institutions, financial companies and other entities under its supervision purview.

Complainants may only file their complaints against credit institutions and financial companies with Banco de Moçambique in the following cases:

  • If they disagree with the treatment of their complaints by complainees and must, to that end, attach, in applicable cases, a copy of the complaint lodged and of the decision taken by complainees;
  • If the complainees do not address their complaints within the legal deadlines established.

The Banco de Moçambique shall also examine denunciations against institutions under its purview.

Notice No. 9/GBM/2020, of December 31.

FINANCIAL EDUCATION

Objectivos

a) Support financial inclusion by disclosing to the public the conditions of access to minimum banking services including a current deposit account, term account and essential payment services;

b) Raising awareness of the importance of saving as a way of empowering families to strengthen their wealth and to cope with unforeseen or occasional expenses;

c) Promote and foster responsible financial knowledge and behaviors, in order to allow a better understanding of the information transmitted by entities operating in the financial system and a more appropriate choice of financial products, weighing costs, remuneration and expected returns and, at the same time, the risks of the products;

d) Enlighten the citizen about the rights and duties of bank customers and financial institutions.

e) Contribute to the efficiency and soundness of the financial market.

See further on FINANCIAL EDUCATION.