Regulatory Alerts2017-12-27
Notice No. 20/GBM/2017, of December 27 - Establishes the Rules and Procedures to be Observed in Foreign Exchange Transactions
The Bank of Mozambique issued Notice 20/GBM/2017 to establish the rules and procedures governing foreign exchange transactions in response to increased cross-border financial flows and recent currency pressures. The regulation applies to all domestic and foreign investors, authorized entities, and regulatory bodies involved in cross-border transactions, mandating compliance with updated monitoring and authorization mechanisms. It defines key terms such as foreign exchange rate arbitration, the Bank of Mozambique as the competent authority, and the Foreign Exchange Authorization Bulletin to ensure flexible yet effective regulatory oversight.
Wednesday, December 27, 2017 | I SERIES — Number 201
REPUBLIC GAZETTE
OFFICIAL PUBLICATION OF THE REPUBLIC OF MOZAMBIQUE
6th SUPPLEMENT
NATIONAL PRESS OF MOZAMBIQUE, E.P.
NOTICE
The matter to be published in the «Republic Gazette» must be submitted as a duly authenticated copy, one for each subject matter, which shall contain, in addition to the necessary indications for this purpose, the following endorsement, signed and authenticated: For publication in the «Republic Gazette».
TABLE OF CONTENTS
Bank of Mozambique:
Notice No. 20/GBM/2017: Establishes rules and procedures to be observed in the conduct of foreign exchange transactions.
BANK OF MOZAMBIQUE
Notice No. 20/GBM/2017 of December 27
The current stage of the national economy, characterized by the multiplication of the network of relations between foreign and domestic investors, has determined an increase in financial flows between the country and abroad, a reality that imposes on authorities in general and on the Bank of Mozambique in particular the duty of adjusted monitoring of operations.
This phenomenon, coupled with the foreign exchange pressure experienced by the country in recent times, has demonstrated the need for the creation, maintenance and updating of flexible foreign exchange intervention rules and instruments, capable of ensuring the effective exercise by the Bank of Mozambique of its function as foreign exchange authority, in accordance with Article 28 of Law No. 1/92, of January 3 – Organic Law of the Bank of Mozambique.
Thus, in the exercise of the competence conferred upon it by Article 5 of Decree No. 49/2017, of September 11, which revises the Regulations of the Foreign Exchange Law, the Bank of Mozambique determines:
CHAPTER I
General Provisions
SECTION I
Subject Matter, Scope and Definitions
ARTICLE 1 (Subject Matter) This Notice establishes the rules and procedures to be observed in the conduct of foreign exchange transactions, as defined under Law No. 11/2009, of March 11, Foreign Exchange Law.
ARTICLE 2 (Scope) This Notice applies to all parties involved in foreign exchange transactions carried out under the Foreign Exchange Law, as well as to entities responsible for ensuring compliance with their respective rules, namely: a) Natural or legal persons holding rights and obligations in the context of carrying out the aforementioned acts, transactions, transfers and operations; b) Entities authorized to conduct foreign exchange transactions; c) Regulatory, supervisory and judicial administration entities, within the scope of their powers conferred by Law.
ARTICLE 3 (Definitions) For the purposes of this Notice, the following terms are understood as: a) Foreign Exchange Rate Arbitration: fixation of the value in national currency to be paid or received upon the acquisition or disposal of foreign currency; b) Foreign Exchange Authority: the Bank of Mozambique, as established by Law No. 1/92, of January 3 – Organic Law of the Bank of Mozambique; c) Bank: a type of credit institution, as qualified by the law governing the establishment and exercise of the activity of credit institutions and financial companies; d) Goods: all that, whether tangible or intangible, may be subject to international trade; e) Foreign Exchange Authorization Bulletin: a document, in physical or electronic format, through which the Bank of Mozambique grants the applicant permission to conduct a foreign exchange transaction;