Notice No. 4/GBM/2022 of July 14 Establishing Information Provision Rules for Resolution Plans

SUMMARY N O T I C E The matter to be published in the «Boletim da República» must be submitted as a duly authenticated copy, one per subject matter, containing, in addition to the necessary indications for this purpose, the following endorsement, signed and authenticated: For publication in the «Boletim da República». IMPRENSA NACIONAL DE MOÇAMBIQUE, E. P. Bank of Mozambique: Notice No. 3/GBM/2022: Amends Articles 81 and 83 of Notice No. 20/GBM/2017, dated December 27. Notice No. 4/GBM/2022: Establishes the Information Provision Rules for the Preparation of Resolution Plans. Thursday, July 14, 2022 SERIES I — Number 135 BANK OF MOZAMBIQUE Notice No. 3/GBM/2022 of July 14 In order to improve the regulatory framework regarding the general requirements and procedures for the prior authorization by the Bank of Mozambique of credits with a repayment period exceeding two years, resulting from the importation of goods and services respectively, with a view to granting greater flexibility and speed to the process, the Bank of Mozambique, using the competence conferred upon it by Article 5 of Decree No. 49/2017, dated September 11, determines: ARTICLE 1 Amendment Articles 81 and 83 of Notice No. 20/GBM/2017, dated December 27, are amended and shall henceforth read as follows: ARTICLE 81 (Credit linked to the importation of goods)

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3. Payment abroad in the settlement of invoices related to the importation of goods is authorized, in case of delay in fulfilling repayment deadlines, even if for a period exceeding two years.
4. The payment process referred to in the preceding paragraph is processed with the intermediary bank, observing the duties of verification, foreign exchange registration and other procedures defined by Circular of the Bank of Mozambique.
5. Without prejudice to the provisions in the preceding paragraphs, for the purpose of paying debts recorded in invoices related to the importation of goods carried out in the period prior to April 1, 2019, banks must request from the importer: a) A letter containing the request, as well as the reasons why invoice payments were not made within the established deadlines; b) Single Customs Document (DU); c) The commercial invoice or debit note issued by the goods supplier at the time of importation; and d) Reports and accounts relating to the period of debt prevalence, and other relevant information to assess the reasons justifying the non-timely payment.
6. In the case where the importer is an individual, the procedure described in the preceding paragraphs must be observed, although the presentation of the documents mentioned in paragraph d) of the previous paragraph is exempted.
7. The documents waived for individuals may be replaced by the presentation of others, such as contracts, including addenda, physical or electronic correspondence from which it can be determined the actual importation of goods, the reasons for non-payment within the deadlines stipulated in the contract or invoices and the prevalence of debt at present. ARTICLE 83 (Credit linked to the importation of services)
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11. Payment abroad in the settlement of invoices related to the importation of services is authorized, in case of delay in fulfilling repayment deadlines, even if for a period exceeding two years.
12. The payment process referred to in the preceding paragraph is processed with the intermediary bank, observing the duties of verification, foreign exchange registration and other procedures defined by Circular of the Bank of Mozambique.
13. For the purpose of paying debts recorded in invoices related to the provision of services, the bank must request from the client the presentation of the following documents: a) A letter containing the request, as well as the reasons why invoice payments were not made within the established deadlines; b) Copy of the service provision contract; c) Commercial invoice or debit note; d) Contract addendum in which the extension of the payment period for services provided has been agreed; e) Reports and accounts relating to the period of debt prevalence, and other relevant information to assess the reasons justifying the non-timely payment; and f) Proof of compliance with tax obligations related to the transaction.
14. In the case where the service importer is an individual, the procedures described in the preceding paragraphs must be observed, although the presentation of the documents mentioned in paragraph e) of the previous paragraph is exempted.
15. The documents waived for individuals may be replaced by the presentation of others, such as contracts, including addenda, physical or electronic correspondence from which it can be determined the actual importation of services, the reasons for non-payment within the deadlines stipulated in the contract or invoices and the prevalence of debt at present. ARTICLE 2 Sanctioning Regime Violation of the provisions of this Notice is punishable in accordance with the prevailing foreign exchange legislation. ARTICLE 3 Clarification of Doubts Doubts regarding the interpretation and application of this Notice must be submitted to the Licensing and Foreign Exchange Control Department of the Bank of Mozambique. ARTICLE 4 Entry into Force This Notice enters into force on the date of its publication. Maputo, May 16, 2022. – The Governor, Rogério Lucas Zandamela. Notice No. 4/GBM/2022 of July 14 Law No. 20/2020, dated December 31, the Law on Credit Institutions and Financial Companies, established the need to prepare resolution plans, with a view to enabling the planning of resolution measures applicable to credit institutions and financial companies, and established, through Article 140, the duty to provide information to the Bank of Mozambique for their preparation. Thus, given the need to define the procedures for submitting informational elements to be sent for the preparation of resolution plans, as well as the complementary rules necessary for executing the duty to prepare resolution plans, the Bank of Mozambique, using the competence conferred upon it by Article 130 of Law No. 20/2020, dated December 31, determines: ARTICLE 1 Subject Matter This Notice establishes the rules for information provision for the preparation of resolution plans, in compliance with Article 140(1) of Law No. 20/20, dated December 31. ARTICLE 2 Scope The rules for information provision referred to in this Notice apply to banks, microbanks and brokerage financial companies. ARTICLE 3 Deadlines for submitting informational elements
16. The informational elements established in this Notice must be sent to the Bank of Mozambique annually, by July 31, with reference to June 30.
17. The information duty referred to in the preceding paragraph is considered fulfilled if the institution has submitted revised informational elements, in compliance with the duty provided for in Article 138(2) of Law No. 20/2020, dated December 31, within the 90 days prior to the aforementioned date.
18. Within 45 days of receiving the informational elements submitted by institutions, the Bank of Mozambique may request missing elements, which must be provided within a maximum period of 15 days. ARTICLE 4 Revision of Resolution Plans Following the communication provided for in Article 138(2) of Law No. 20/2020, dated December 31 - Law on Credit Institutions and Financial Companies, institutions must submit to the Bank of Mozambique a revision of the informational elements within a maximum period of 60 days from that communication. ARTICLE 5 Provision of complementary information
19. The Bank of Mozambique may request institutions to provide complementary information whenever necessary, which it considers relevant for preparing a resolution plan that enables the pursuit of the purposes provided for in Article 131(1) of Law No. 20/2020, dated December 31.
20. The complementary information provided in the preceding paragraph may consist of greater detail regarding the provided informational elements or other additional information that the Bank of Mozambique considers relevant for the resolution plan. ARTICLE 6 Partial exemption from the information duty
21. The institution seeking partial exemption from the information duty for preparing its respective resolution plan, in accordance with Article 141(1) of Law No. 20/2020, dated December 31, must submit a specific request to the Bank of Mozambique for this purpose.
22. The request referred to in the preceding paragraph must be duly justified based on the criteria provided for in Article 141(1) of the Law on Credit Institutions and Financial Companies.
23. The partial exemption request must be submitted to the Bank of Mozambique by April 30 each year.
24. The decision to exempt an institution from the information duty for preparing its respective resolution plan is valid for 3 years; upon expiration, the institution in question must submit a new exemption request to the Bank of Mozambique.
25. The institution that ceases to meet any of the criteria provided for in Article 141(1) of Law No. 20/2020, dated December 31, which was used as the basis for exemption from the information duty for preparing its respective resolution plan, must immediately inform the Bank of Mozambique. ARTICLE 7 Submission of informational elements The informational elements to be sent must comply with the structure defined by Circular of the Bank of Mozambique. ARTICLE 8 Transitional Provision Institutions must comply with the provisions of this Notice within 180 days from the date of entry into force. ARTICLE 9 Sanctioning Regime Violation of the provisions provided for in this Notice is punishable in accordance with Law No. 20/2020, dated December 31. ARTICLE 10 Instructions and Clarifications
26. The Bank of Mozambique issues the necessary instructions for compliance with this Notice.
27. Doubts arising from the interpretation and application of this Notice must be submitted to the Macroprudential Analysis Department of the Bank of Mozambique. ARTICLE 11 Entry into Force This Notice enters into force on the date of its publication. Maputo, March 31, 2022. – The Governor, Rogério Lucas Zandamela. Price — 20.00 MT IMPRENSA NACIONAL DE MOÇAMBIQUE, E.P.