Regulatory Alerts2020-12-31
Law No. 20/2020 of December 31 – Law on Credit Institutions and Financial Companies (LICSF)
The Assembly of the Republic of Mozambique enacted Law No. 20/2020 to establish a comprehensive legal framework governing the establishment, supervision, and resolution of credit institutions and financial companies. The legislation strengthens licensing requirements, corporate governance, and risk management while introducing specific mechanisms for the timely recovery or orderly liquidation of unviable entities. It delineates exclusive activities, capital requirements, authorization procedures, and revocation grounds to ensure market stability and protect depositors and creditors.
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