Decree No. 11/2016 of May 16 Approving the Regulation of Law No. 6/2015 of October 6

BOLETIM DA REPÚBLICA OFFICIAL GAZETTE OF THE REPUBLIC OF MOZAMBIQUE SUMÁRIO NOTICE The matter to be published in the «Boletim da República» must be submitted as a duly authenticated copy, one for each subject, containing, in addition to the necessary indications, the following endorsement, signed and authenticated: For publication in the «Boletim da República». IMPRENSA NACIONAL DE MOÇAMBIQUE, E.P. Council of Ministers: Decree No. 11/2016: Approves the Regulation of Law No. 6/2015, of October 6. Monday, May 16, 2016 I SERIES — Number 58 COUNCIL OF MINISTERS Decree No. 11/2016 of May 16 Since it is necessary to regulate Law No. 6/2015, of October 6, which establishes the Private Credit Management Information System and its operating rules, the Council of Ministers, under the powers conferred by Article 54 of said Law, decrees: Article 1. The Regulation of Law No. 6/2015, of October 6, attached to this Decree and forming an integral part thereof, is approved. Article 2. This Regulation enters into force within sixty days from the date of its publication. Approved by the Council of Ministers on March 29, 2016. Let it be published. The Prime Minister, Carlos Agostinho do Rosário. Regulation of Law No. 6/2015, of October 6, Private Credit Management Information System Law CHAPTER I General Provisions Article 1 (Subject Matter) This Regulation establishes the procedures for the operation of the Private Credit Management Information System. Article 2 (Scope of Application) This Regulation applies to credit information centers, data providers, subscribers, and clients. CHAPTER II Licensing Article 3 (Minimum Share Capital)

1. The minimum share capital for the establishment of a credit information center is 16,000,000.00 (sixteen million) meticais.
2. The Governor of the Bank of Mozambique is responsible for updating the minimum share capital whenever deemed necessary according to market conditions. Article 4 (Application Processing)
3. The application for authorization to operate as a credit information center is submitted to the Governor of the Bank of Mozambique.
4. The application must be accompanied by the following documents: a) Form and questionnaire approved by the Bank of Mozambique; b) Copy of identification document, curriculum vitae, and criminal record certificate for each proposing shareholder who is an individual; c) Articles of association, legal entity registration, list of shareholders, list of companies in which they hold participations corresponding to 10%, and audited financial statements for the last 3 years, or, if established for a shorter period, for their active period, for proposing shareholders who are legal entities; d) Draft articles of association of the entity to be established; e) Declaration by each proposing shareholder that the funds to be allocated and mobilized are not of illicit or criminal origin; f) Business plan, containing at minimum the following elements: i. Executive summary, with a summary of the main business characteristics, products and services to be provided, and investor expectations; ii. Market analysis, with identification of the target audience and suppliers; iii. Mechanisms for including small financial institutions; iv. Financial plan, with description of projected investment, forecast accounts for the first three years of operation, and viability and profitability indicators; v. Corporate governance model. 304 I SERIES — NUMBER 58 g) Business continuity plan; h) Information systems architecture and interoperability standards with data providers, subscribers, and the Bank of Mozambique; i) Operational manuals, as provided for in paragraph d) of Article 20 of Law No. 6/2015, of October 6; j) Bank guarantee in favor of the Bank of Mozambique or proof of prior indisputable deposit made at the Bank of Mozambique, corresponding to 5% of the share capital; k) Proof of payment, by deposit at the Bank of Mozambique, of the licensing application processing fee.
5. The Bank of Mozambique may request supplementary information from applicants and carry out necessary investigations for application analysis.
6. The application, along with its supporting documents, must be submitted in duplicate and drafted in Portuguese. Article 5 (Authorization Conditions) The following are considered authorization conditions for granting a license: a) Application processing with all required documents and information under Article 4 of this Regulation; b) Integrity and financial capacity of the proposing shareholders; c) Lawful origin of funds allocated to the activity; d) Business viability; e) Adequacy of technological infrastructure for data and information loading, consolidation, quality control, queries, security, complaint handling, and archiving. Article 6 (Decision)
7. The decision on the authorization application must be made within sixty days from the date of receipt of a duly processed application.
8. In case of deficient application processing, resulting in missing elements or the need for supplementary information, the Bank of Mozambique notifies applicants, granting them a reasonable period of up to thirty days to remedy the deficiency or provide missing information.
9. In the cases mentioned in the preceding paragraph, the time limit for decision-making is suspended.
10. The Bank of Mozambique must notify the applicant in writing of the decision taken and, in case of refusal, indicate the reasons for rejection. Article 7 (Destination of the Prior Deposit and Bank Guarantee)
11. The Bank of Mozambique returns the prior deposit amount or releases the provided guarantee to applicants after decision communication, in case of application refusal, or after institution establishment, in case of authorization.
12. If the application is authorized, the prior deposit amount may be considered for fulfilling the institution's share capital.
13. The prior deposit or bank guarantee amount reverts to the State when the following situations occur: a) If the application is refused due to false declarations or discovery of other illicit means; b) If the authorization expires for failure to observe the established time limit for institution establishment; c) If, before institution establishment, the authorization is revoked due to false declarations or other illicit means. Article 8 (Company Name/Designation) Credit information centers must include in their name or designation expressions suggesting the activity they perform. Article 9 (Mandatory Special Registration)
14. Credit information centers cannot commence operations until registered in a special register at the Bank of Mozambique.
15. The following elements are subject to special registration: a) Name or designation; b) Purpose; c) Seat location; d) Authorization date and establishment date; e) Subscribed and paid-up share capital; f) Identification of shareholders and specification of their social participations; g) Identification of members of governing bodies and others equivalent; h) Date of commencement of operations.
16. Subsequent changes to the elements mentioned in the preceding paragraph, as well as the location and date of creation and closure of agencies, are also subject to special registration. Article 10 (Registration Application)
17. Registration must be requested within ninety days from the date the registrable events occurred.
18. The registration application must be accompanied by all documents supporting the events to be registered. Article 11 (Refusal and Cancellation of Registration)
19. Special registration is refused whenever: a) There is a discrepancy between the elements to be registered and their supporting documents; b) The nullity of the registrable event is manifest; c) Prior authorization from the Bank of Mozambique was not obtained, where applicable; d) The institution has not complied with the conditions imposed in the authorization.
20. Registration is cancelled whenever it is found to have been obtained through false declarations or other illicit means, without prejudice to applicable criminal sanctions.
21. In the case of governing body members, registration may be cancelled if it is subsequently concluded that they no longer meet the integrity and professional experience requirements for holding office. 16 DE MAY OF 2016 305 Article 12 (Inspection)
22. Credit information centers may only commence operations after being inspected by the Bank of Mozambique regarding the adequacy of their premises, data processing centers, and entire computer system to the activity they propose to develop.
23. Inspection must also be carried out whenever there is a change of premises or significant alterations to previously inspected premises.
24. The adequacy of credit information centers' premises may also be examined in five-year cycles.
25. The Bank of Mozambique may request the presentation of inspection certificates regarding matters under the guardianship of other entities. Article 13 (Opening and Closure of Agencies)
26. The opening and closure of credit information centers' agencies require prior authorization from the Bank of Mozambique.
27. The opening application must indicate the location where the agency is to be installed and the type of operations to be carried out.
28. The closure application must be justified. Article 14 (Statutory Amendments)
29. The following amendments to the articles of association of credit information centers are subject to Bank of Mozambique authorization: a) Purpose; b) Seat location; c) Share capital, when involving reduction; d) Administration and supervision structure.
30. The amendment application must be accompanied by a draft containing the statutory provisions to be amended.
31. The decision must be made within thirty days from the date of receipt of the application. Article 15 (Transfer of Participations)
32. The transfer of participations equal to or greater than 5% of the share capital, or transfers enabling acquirers to reach 10% or 50% of the share capital, is subject to prior authorization from the Bank of Mozambique.
33. The authorization application must be requested by the transferring shareholder and processed, in addition to a descriptive document of the transfer project, with the elements referred to in paragraphs a), b), and c) of paragraph 2 of Article 4 of this Regulation, as well as copies of the general assembly minutes of the credit information center and the acquirer approving the project, depending on whether the acquirer is an individual or legal entity.
34. When involving the entry of a new shareholder or increase in participations due to share capital increase, the prior authorization request must be made by the credit information center, as referred to in the preceding paragraph.
35. Authorization of the application is conditioned on: a) Compliance with the elements in paragraphs a), b), and c) of Article 5 of this Regulation; b) Satisfactory assessment that the acquirer and transfer project meet conditions guaranteeing sound institution management.
36. The decision must be made within thirty days from the date of receipt of a duly processed application. Article 16 (Fees)
37. For the purpose of license application assessment, a processing fee is due to the Bank of Mozambique and must be paid upon submission.
38. After authorization, credit information centers must pay the Bank of Mozambique an annual license fee.
39. The Bank of Mozambique establishes the processing and license fees by Notice. CHAPTER III Operation of the Credit Information Center Article 17 (Exercise of Other Activities) Upon duly justified request, the Bank of Mozambique may authorize credit information centers to exercise other activities, as provided in paragraph d) of paragraph 2 of Article 9 of Law No. 6/2015, provided these activities are analogous to those permitted by law and contribute to greater transparency in the credit and deferred payment information market, and the institution has financial and technical conditions to provide them with quality and security. Article 18 (Cross-Border Sharing Requirements)
40. For the purposes of Article 17 of Law No. 6/2015, the Bank of Mozambique may conclude Memoranda of Understanding with licensing and supervision authorities of credit information centers in other States and authorize the sharing of client information between credit information centers and counterpart entities from those States, on a reciprocal basis, provided that: a) Such entities are subject to supervision by a competent authority in the respective country; b) Such entities are regulated by legislation establishing, at minimum, restrictions on the collection of sensitive data, restrictions on data use, clients' property rights over their information, and security and integrity requirements; c) Sharing is carried out solely for the purpose of analyzing specific credit or deferred payment applications.
41. The terms of information sharing between the credit information center and its counterpart must be set forth in a written contract, identifying the foreign counterparty and expressly prohibiting the provision of shared information to a third entity. Article 19 (Feeding and Updating of the Bank of Mozambique's Database)
42. Credit information centers must be connected to the Bank of Mozambique's credit registry center in real time, enabling the transmission of registered client information.
43. Information transmission protocols are established by Notice of the Bank of Mozambique. 306 I SERIES — NUMBER 58 Article 20 (Updating of Registered Information)
44. Credit information centers must update registered information in their databases within one business day from the date of receipt of new information.
45. Whenever anomalous situations occur that prevent compliance with the established time limit, it may be extended up to five business days.
46. Credit information centers must report the anomalous situations described in the preceding paragraph in accordance with Article 23 of this Regulation. Article 21 (Replication Centers) The replication facilities of credit information centers must be located at a distance of no less than thirty kilometers from primary processing centers. Article 22 (External Audit) The Bank of Mozambique must order an audit of the security systems of a credit information center, at its expense, in the following situations: a) Whenever inspection detects signs of security system failures that may cause destruction, loss, alteration, dissemination, or unauthorized access to personal data and information held by the credit information center; b) When the credit information center requests cessation of its activities. Article 23 (Periodic Supervision Reports) The information to be periodically submitted by credit information centers to the Bank of Mozambique for supervision purposes is regulated by Notice of the Bank of Mozambique. Article 24 (Information on Material Events)
47. Credit information centers must notify the Bank of Mozambique of any event that proves material for the effective performance of their activities, namely: a) Events that compromise or may compromise the confidentiality, security, and integrity of information registered in their database; b) Proceedings of any nature filed against them and criminal proceedings filed against members of their executive body, domestically or abroad; c) Events or irregularities that prevent or hinder access to the institution's normal operations; d) Financial imbalances likely to result in insolvency or inability to fulfill obligations.
48. The notification referred to in the preceding paragraph must be made immediately, not exceeding five business days from the date of the event's occurrence. CHAPTER IV Subscribers and Providers Article 25 (Commercial Companies) Commercial companies providing services or making deferred payment sales may be subscribers and providers of credit information centers, provided that: a) They provide these services or deferred payment products for at least 45 days; b) They are subject to the organized accounting regime for income tax purposes; c) They have been exercising their activity for at least six months. Article 26 (Other Subscribers) The Bank of Mozambique may authorize other entities to appear as subscribers of credit information centers, provided they perform credit activities. Article 27 (Communication of Obligation Fulfillment) Providers must notify the credit information center of their clients' fulfillment of registered obligations, within a maximum of two business days from the date of such fulfillment. CHAPTER V Clients' Rights Article 28 (Right to Information)
49. The data provider must inform the client about negative information intended to be transmitted to credit information centers, at least five business days in advance.
50. Updating the information referred to in the preceding paragraph does not require notification to the client. Article 29 (Obtaining Reports and Clarifications)
51. A client who has received a reservation notification or requested correction of incorrect or imprecise information may request a free report from the credit information center within thirty days from the date of notification or correction request.
52. The time limit for credit information centers to provide free reports, as per the preceding paragraph, or supply requested clarifications is three business days from the date of request.
53. In other cases, the time limit for providing reports to clients is one business day from the date of request.
54. Credit information centers cannot stipulate additional conditions for clients to access their reports.
55. If the error or imprecision of information is attributable to the provider, the credit information center has a right of recourse against it regarding the value of the report provided free of charge to the client. Article 30 (Complaint Procedures)
56. Data providers must make necessary corrections to received complaints within three business days.
57. The decision on the complaint must be notified to clients in writing within ten business days.
58. The verification by credit information centers of the complained facts, as well as the necessary corrections or elimination of information, must be carried out within five business days.
59. Credit information centers must provide a response to the client within the time limit established in the preceding paragraph.
60. The verification of complained facts must be based on legally valid documents, with the provider responsible for justifying the existence of the claimed obligation. Article 31 (Appeal) The appeal regarding the complaint result, referred to in Article 38 of Law No. 6/2015, follows the complaint handling, information requests, and suggestions regime established by Notice of the Bank of Mozambique. Article 32 (Information Unit)
61. The information units of credit information centers must have a counter for handling complaints and information requests.
62. The counter must operate during normal business hours and be equipped with sufficient resources to timely address client requests. CHAPTER VI Contravention Process Article 33 (Process Processing)
63. The contravention process begins with the filing of an accusation note, indicating the defendant, the facts imputed to them and their time and place circumstances, as well as the legal provision prohibiting and punishing them.
64. The accusation note must be notified to the defendant, granting them ten days to submit a defense.
65. Notification is made personally or by registered mail with acknowledgment of receipt, and if the defendant cannot be found, refuses to receive it, or their address is unknown, edictal citation rules apply.
66. The defense must be submitted in writing, accompanied by respective means of proof.
67. After carrying out necessary investigation and processing steps resulting from the defense, the decision taken is notified to the defendant, containing a description of the imputed facts, the produced evidence, and, where applicable, the applied sanction or sanctions. Article 34 (Sanctions)
68. Contraventions attributable to credit information centers, provided for in Article 48 of Law No. 6/2015, are punishable by a fine ranging from 500,000.00 (five hundred thousand) to 2,000,000.00 (two million) meticais.
69. Contraventions attributable to members of the governing body, management office holders, or those acting on behalf of the company are punishable by a fine ranging from 100,000.00 (one hundred thousand) to 500,000.00 (five hundred thousand) meticais.
70. Failure to correct or regularize the situation related to the contravention is subject to an additional daily fine of 5% of the fine applied under paragraph 1 of this Article.
71. The fine amounts fixed in this Article are updated by Notice of the Bank of Mozambique. Article 35 (Suspension Period)
72. The suspension period of the license for exercising credit information centers' activities, established in paragraph 3 of Article 7 of Law No. 6/2015, may not exceed thirty days.
73. The Bank of Mozambique may extend the period referred to in the preceding paragraph for a maximum of fifteen days.
74. Upon expiration of the suspension period, if the credit information center has not regularized non-compliance situations, the Bank of Mozambique determines license revocation, as stipulated in paragraph 4 of Article [missing number] of Law No. 6/2015. Article 36 (Payment of Fines)
75. The credit information center is jointly liable for the payment...