Notice No. 18/GBM/2017, of 18 October – Regulation on Direct Debits

OFFICIAL GAZETTE OF THE REPUBLIC OF MOZAMBIQUE SUMMARY NOTICE The matter to be published in the "Boletim da República" must be submitted as a duly authenticated copy, one per subject, containing, in addition to the necessary details for this purpose, the following endorsement, signed and authenticated: For publication in the "Boletim da República". NATIONAL PRESS OF MOZAMBIQUE, S.A. Council of Ministers: Decree No. 53/2017: Establishes the Disaster Management Fund, hereinafter abbreviated as FGC, and approves its respective Regulation. Prime Minister: Dispatch: Awards the Park de Chidenguele Tourist Resort to Park de Chidenguele, Lda. Bank of Mozambique: Notice No. 18/GBM/2017: Approves the Regulation on Direct Debits. Wednesday, 18 October 2017, First Series — Number 162

COUNCIL OF MINISTERS Decree No. 53/2017 of 18 October

Given the need to establish the Disaster Management Fund, under paragraph 1 of Article 23 of Law No. 15/2014 of 20 June, which establishes the Legal Regime for Disaster Management, the Council of Ministers decrees:

Article 1. The Disaster Management Fund, hereinafter abbreviated as FGC, is established, and its Regulation, attached hereto, is approved, forming an integral part of this Decree.

Article 2. All legislation contrary to this Decree is hereby repealed.

Article 3. This Decree shall enter into force within 30 days of its publication.

Approved by the Council of Ministers on 18 July 2017. Published. The Prime Minister, Carlos Agostinho do Rosário.

Regulation of the Disaster Management Fund (FGC)

ARTICLE 1 (Nature) The Disaster Management Fund, hereinafter abbreviated as FGC, is a dedicated bank account managed by the National Institute of Disaster Management (INGC).

ARTICLE 2 (Objectives)

1. The FGC aims to cover the costs of the various bodies and organisms involved in disaster management.
2. The resources of the FGC are exclusively intended to finance activities to enhance readiness, response, recovery, and post-disaster reconstruction, namely: a) Readiness and response activities to disasters, which include measures to enhance readiness, search and rescue operations, distribution of support goods in accommodation centers, post-disaster recovery and reconstruction; b) Social assistance programs and projects for generating temporary seasonal employment for urban and rural groups affected by emergencies; c) Initiatives by local government bodies aimed at enhancing readiness and response and recovery capacity to disasters among local communities; d) Procurement of sovereign insurance to provide financial protection for the State and communities located in areas at high risk of disasters.
3. The FGC may also support post-disaster reconstruction activities aimed at ensuring the sustainability of post-disaster recovery actions, subject to financial availability.
4. The financing of the activities indicated in paragraph (b) of paragraph 2 of this Article shall be regulated by the Ministers overseeing the areas of Finance, Gender, Children and Social Action.
5. The rules governing the financing of the activities referred to in paragraph 3 of this Article shall be approved by the Diploma of the Minister overseeing the Finance area.
6. Disaster prevention activities shall be funded by sectoral budgets, within the framework of normal development activities, inscribed in the Economic and Social Plan and Budget of each institution or local government body.

ARTICLE 3 (Management Principles) The management of the FGC is based on the following principles: a) Prioritization of the protection of human lives, rapid recovery, and safe and resilient post-disaster reconstruction; b) Prioritization and guidance by needs; c) Focus on the direct and indirect effects of natural disasters; d) Agility, flexibility, and speed in handling emergency, recovery, and post-disaster reconstruction issues; e) Transparency, integrity, efficiency, creativity, innovation, and coordination in the mobilization, allocation, and management of resources; f) Equality, inclusion, and comprehensiveness in the handling and allocation of resources for priority readiness, response, recovery, and post-disaster reconstruction activities; g) Shared responsibility of society and those affected in financing and promoting actions to reduce disaster risk; h) Use of knowledge, best practices, and reliable information for decision-making.

ARTICLE 4 (Beneficiaries)

1. The beneficiaries of the FGC are State Institutions directly linked to readiness, response, recovery, and post-disaster reconstruction within the framework of implementing the Annual Contingency Plan.
2. National Non-Governmental Organizations operating in areas of imminent risk or affected by disasters may benefit from the FGC subject to financial availability.
3. Access to the funds referred to in the preceding paragraph shall be governed by the rules approved by the Minister overseeing the Finance area.

ARTICLE 5 (Managing Entity of the FGC)

1. The management of the FGC falls to the National Institute of Disaster Management.
2. Within the scope of FGC management, it is specifically the responsibility of the INGC to: a) Ensure the management of the FGC, in accordance with the norms and principles of integrity and transparency in public asset management; b) Manage the financial and material resources allocated to the FGC; c) Draft the annual Budget proposal for the Fund and submit it for approval by the competent authority; d) Prepare, initiate, and conduct procurement processes for goods and services of the Fund; e) Process payments of the Fund's expenses, including payment of sovereign insurance premiums; f) Prepare investment proposals and mobilize financial resources for the FGC; g) Maintain organized accounting and archives of the FGC; h) Contract annual audits of the FGC accounts; i) Prepare the Annual Report and Account of the Fund and submit them for approval by the competent authority; j) Conclude cooperation agreements with national and foreign entities. k) Propose the terms for access to and use of the funds.
3. Within the scope of FGC management, the INGC is supported by the Technical Council for Disaster Management, which is responsible for reviewing and issuing opinions on: a) The Annual Budget proposal for the FGC; b) The proposal for the annual account report of the FGC; c) Procurement processes for services by the FGC; d) Procurement processes for sovereign insurance against disasters.

ARTICLE 6 (Disaster Management Coordinating Council) Within the scope of FGC management, it is the responsibility of the Disaster Management Coordinating Council to: a) Supervise the management of the FGC; b) Approve the annual Budget of the FGC; c) Approve the Annual Report and Account of the FGC; d) Approve the conclusion of contracts for the provision of goods and services; e) Authorize the conclusion of cooperation agreements with national and foreign entities.

ARTICLE 7 (Revenue) The revenue of the FGC consists of: a) State allocation, with a minimum annual amount of 0.1% of the State Budget; b) Donations; c) Balances from the previous fiscal year; d) Contributions from national and foreign companies, individuals, and legal entities operating within the national territory; e) Others, which under applicable legislation or by contract are allocated to it.

ARTICLE 8 (Expenses) The expenses of the FGC consist of those inherent to the pursuit of its objectives set forth in Article 2 of this Regulation.

ARTICLE 9 (Financial Management) The financial management of the Fund shall be governed by the Law on the State Financial Administration System and other applicable legislation.

ARTICLE 10 (Accounts) The accounts, after approval by the Disaster Management Coordinating Council, shall be submitted to the Administrative Court and the Council of Ministers.

ARTICLE 11 (Fiscal Periods) The fiscal periods of the FGC correspond to the calendar year.

ARTICLE 12 (Publication of Reports)

1. The Fund's Report must be published annually in the Boletim da República.
2. The Report approved by the Disaster Management Coordinating Council is sent to the Administrative Court and the Council of Ministers.

ARTICLE 13 (Audit) Without prejudice to internal control, the accounts of the FGC are subject to external audit.

ARTICLE 14 (Applicable Rules) The FGC shall be governed by the rules of this Decree, by complementary regulations approved by the Ministers overseeing the areas of Finance and State Administration and Public Service, and by the remaining applicable legislation.

ARTICLE 15 (Transitional Provisions) The resources from the State Budget allocated to finance the Annual Contingency Plan shall be transferred to the Disaster Management Fund.

PRIME MINISTER Dispatch Within the framework of the restructuring process of the State business sector, the Park de Chidenguele Tourist Resort was identified for restructuring, under Decree No. 21/89 of 23 May. In accordance with paragraph 2 of Article 5 of the same Decree and paragraph (c) of Article 8 of Law No. 15/91 of 3 August, private negotiations were conducted with the object of alienating the Park de Chidenguele Tourist Resort. Following the conclusion of negotiations with Park de Chidenguele, Lda, it is urgent to formalize the award of the Park de Chidenguele Tourist Resort, in order to precisely define the rights and obligations of the parties within the privatization of the unit. Using the competence defined in paragraph 1 of Article 10 of Law No. 15/91 of 3 August, I decide: Single Article. The Park de Chidenguele Tourist Resort is awarded to Park de Chidenguele, Lda. Maputo, 19 September 2017. – The Prime Minister, Carlos Agostinho do Rosário.

BANK OF MOZAMBIQUE Notice No. 18/GBM/2017 of 18 October

Given the need to establish rules and procedures regarding the payment of goods, services, and other financial obligations by means of direct debits, which allow credit institutions to automatically process periodic payments and transmit data with accuracy, convenience, speed, and security, through account debit authorization, the Bank of Mozambique, using the powers conferred upon it by paragraph (d) of paragraph 2 of Article 37 of Law No. 1/92 of 3 January - Organic Law of the Bank of Mozambique, and by paragraph 4 of Article 17 of Law No. 2/2008 of 27 February - Law establishing the National Payments System, determines:

1. The Regulation on Direct Debits, attached hereto, is approved, forming an integral part of this Notice.
2. This Notice shall enter into force on the date of its publication.
3. Any doubts arising in the interpretation and application of this Notice shall be submitted to the Regulation and Licensing Department of the Bank of Mozambique.

Maputo, 29 August 2017. – The Governor, Rogério Lucas Zandamela.

Regulation on Direct Debits

CHAPTER I General Provisions

ARTICLE 1 Subject matter and scope of application

1. This Regulation establishes the rules and procedures regarding the payment of goods, services, and other financial obligations by means of direct debits.
2. This Regulation applies to credit institutions and other entities that the Bank of Mozambique may authorize, hereinafter referred to as institutions, as well as to the account holders and beneficiaries of direct debits.

ARTICLE 2 Definitions For the purposes of this Regulation, the following shall be understood as: a) Account Debit Authorization (ADA): the mechanism by which the account holder, in a consented and express manner, authorizes their institution and other entities to debit their demand deposit account, opened in their name at that institution, for a fixed, variable, or limited amount, in favor of the beneficiary or their representative, observing a previously defined date; b) Beneficiary: the natural or legal person authorized by the account holder to collect payments through direct debits; c) Direct Debit (DD): the payment instrument that enables the beneficiary to collect payments through their institution and other authorized entities, ensuring the agreement between them and the account holder, materialized in an ADA; d) Beneficiary's institution: the credit institution where the beneficiary holds a demand deposit account, with which an agreement is concluded to ensure the provision of the service, within pre-established rules, and which is responsible for sending the DDs to the account holder's institution; e) Account holder's institution: the credit institution where the account holder holds a demand deposit account, responsible for debiting this account, secured by the existence of an ADA; f) Account holder: the natural or legal person who authorizes that payments be collected through DDs in favor of the beneficiary, by signing an ADA.

ARTICLE 3 Mandatory content of the Account Debit Authorization The ADA must contain the rules governing the relationship between the account holder and the beneficiary, as well as the general conditions for the submission, processing, and settlement of the DD, namely: a) The name of the beneficiary and their respective bank account number (NIB); b) The name of the account holder and their respective NIB; c) The ADA number; d) The dates on which the DD must be presented to the account holder's institution; e) The type of DD – single payment or recurring; f) The maximum amount to be paid, where applicable; g) The deadline for payment, where applicable; h) The beneficiary's unique tax identification number (NUIT); i) The account holder's NUIT; j) The reference of the service provision contract concluded between the beneficiary and the account holder; k) The signature of the account holder, the location, and the date.

CHAPTER II Parties and their obligations

ARTICLE 4 Parties to direct debits The parties to DDs are: a) The beneficiary; b) The beneficiary's institution; c) The account holder; d) The account holder's institution; e) The Bank of Mozambique; f) Other entities that the Bank of Mozambique may authorize.

ARTICLE 5 Obligations of the beneficiary The obligations of the beneficiary are: a) Collect payment from the account holder's institution, after receiving the ADA from them; b) Notify the account holder in advance of the date from which collection will proceed and the respective amount; c) Ensure that each ADA corresponds to a debit authorization; d) Send the list of DDs to their institution; e) Present the ADA within a period of up to two business days, when requested by the account holder or their representative; f) Refrain from submitting for collection amounts to be debited under an ADA whose cancellation has been communicated to them; g) Analyze complaints submitted by the account holder related to improper debits made through DDs, and, where applicable, regularize the situation with the institutions within five business days following the submission of the complaint; h) Keep, under conditions of security and confidentiality, the ADAs in their possession, observing the deadlines established by Article 19 of Decree No. 66/2014 of 29 October, which approves the Regulation of Law No. 14/2013 of 12 August, regarding the prevention and combating of money laundering and terrorist financing.

ARTICLE 6 Obligations of the beneficiary's institution The obligations of the beneficiary's institution are: a) Submit the files to the Bank of Mozambique, after receiving the list of DDs from the beneficiary; b) Notify the beneficiary of all returns and all rejections of DDs occurring in interbank electronic clearing; c) Notify beneficiaries, clearly and unequivocally, of the credits made through DDs and the respective account holders, as well as any other movements occurring in their accounts as a result of the use of DDs.

ARTICLE 7 Obligations of the account holder The obligations of the account holder are: a) Authorize the beneficiary, through the issuance of an ADA, to initiate collections by means of the DD; b) Submit a copy of the ADA to their institution; c) Fund the indicated account in advance to cover the DD that will be settled; d) Submit in writing to the beneficiary, with a copy to their institution, the refusal to pay the DD, up to three business days prior to the collection start date, if the amount to be collected is incorrect; and e) Ensure the integrity of the information contained in the ADA.

ARTICLE 8 Obligations of the account holder's institution The obligations of the account holder's institution are: a) Receive, validate, and assign an indicative, unique, and unequivocal number to the ADA submitted by the account holder, and register it in the Bank of Mozambique's system; b) Settle the DD or return it, citing one of the reasons listed in this Regulation; c) Process payment, by order and under the conditions presented by the account holder in the ADA; d) Reject the DD order submitted for collection, if in possession of a non-payment order from the account holder; e) Confirm the existence of an ADA for the received DD; f) Ensure the integrity of the information contained in the ADA; g) Whenever requested, provide information on specific DDs to the account holder; and h) Notify the account holder, clearly and unequivocally, of the debits made through DDs and the respective beneficiaries, as well as any other movements occurring in their account as a result of the use of DDs.

CHAPTER III Adhesion, identification, value of DDs, return, and cancellation of the ADA

ARTICLE 9 Adhesion to DD

1. Adhesion to the DD is carried out by completing the ADA by the account holder and submitting it to their institution.
2. The account holder adheres to collections made through DDs freely and spontaneously.

ARTICLE 10 Identification of the parties In DDs, the account holder and the beneficiary are identified through their respective NUIT and NIB.

ARTICLE 11 Cancellation of the Account Debit Authorization

1. The account holder may cancel an ADA at any time, and must communicate this fact to the beneficiary and their institution.
2. The cancellation of the ADA takes effect from the collection period following the communication.

ARTICLE 12 Value of the direct debit The account holder may, if desired, establish a limit value for DD collections on their account, as well as, where applicable, agree with the beneficiary, with due advance notice, the debit amounts and the dates from which they will be collected.

ARTICLE 13 Fund availability deadlines The funds related to DDs must be available in the beneficiary's account within a period of up to 48 hours, counted from the date of sending the electronic file by the beneficiary's institution.

ARTICLE 14 Reasons for return of direct debits Without prejudice to the return reasons established by Notice No. 17/GBM/2013 of 31 December, concerning Interbank Clearing and Settlement, the following also constitute reasons for DD returns: a) Absence of an ADA; b) Invalid account holder NIB; c) Invalid account holder NUIT; d) Lack of indication of the ADA execution date; e) Submission outside the deadline for DD execution; f) Invoice amount different from that agreed between the account holder and the beneficiary, in expressly established cases.

CHAPTER IV Confidentiality of information and complaints

ARTICLE 15 Confidentiality of information

1. Information collected by institutions regarding the DDs of their respective users is confidential.
2. The information referred to in the preceding paragraph must not be used for other purposes or provided to third parties without prior and explicit authorization from the users.

ARTICLE 16 Complaints

1. Any natural or legal person who is a client of an institution may submit, through the complaints book or directly to their institution, complaints based on the institution's failure to fulfill its obligations regarding the execution of DDs.
2. The institution is obliged to inform the client about the complaint procedures.

CHAPTER V Final Provisions

ARTICLE 17 Sanctioning Regime Violation of the provisions of this Notice constitutes an offense punishable under the National Payments System Law and other applicable legislation.

ARTICLE 18 Institutional Compliance with this Notice Institutions must, within a period of one hundred and eighty days, counted from the date of entry into force of this Regulation, align their acts, procedures, and software applications with its provisions.

Price — 21.00 MT NATIONAL PRESS OF MOZAMBIQUE, S.A.