Notice No. 01/GBM/2015 of April 22 - Rules and Criteria for the Opening and Closure of Bank Branches

BOLETIM DA REPÚBLICA PUBLICAÇÃO OFICIAL DA REPÚBLICA DE MOÇAMBIQUE SUMÁRIO 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 for each subject matter, containing the necessary indications for this purpose, along with the following endorsement, signed and authenticated: For publication in the "Boletim da República". IMPRENSA NACIONAL DE MOÇAMBIQUE, P.E. Bank of Mozambique Notice No. 1/GBM/2015: Regarding the rules and criteria for the opening and closure of Bank Branches. Notice No. 2/GBM/2015: Regarding the connection to the national single electronic payments network. Wednesday, April 22, 2015 | FIRST SERIES — Number 32

BANK OF MOZAMBIQUE Notice No. 1/GBM/2015 of April 22

The establishment of bank branches in districts has been increasing in recent years, favored by the macroeconomic context and the impact of various measures implemented by the Government and other stakeholders, as well as improvements in technological and infrastructural domains. Nevertheless, there are still locations with economic and infrastructural potential, such as electricity grid coverage, roads, and telecommunications, which lack financial services. Therefore, it is appropriate to strengthen existing measures to drive the banking inclusion process and ensure equitable access to financial services.

Thus, the Bank of Mozambique, exercising the competence conferred by item a) of paragraph 4 of Article 10 of the Regulation of Credit Institutions and Financial Companies, approved by Decree No. 56/2004 of December 10, as amended by Decree No. 30/2014 of June 5, determines:

CHAPTER I General Provisions

ARTICLE 1 Object

1. This Notice establishes the rules, conditions, and criteria for the opening and closure of bank branches, as well as the eligible locations.
2. This Notice also covers the effect of branch closures on locations listed in the appendix to this Notice.

ARTICLE 2 Scope of Application

1. This Notice applies to banks intending to open new branches in locations listed in the appendix to this Notice, observing the geographic proportionality criterion established in Law No. 9/2004 of July 21 – the Law on Credit Institutions and Financial Companies.
2. Banks must comply with the geographic proportionality criterion: for every three (3) new branches, the first opening must be in one of the locations listed in the appendix to this Notice, and the remaining ones at the bank's free choice.

CHAPTER II Rules and Criteria for the Opening of Bank Branches

ARTICLE 3 Bank Branch Expansion Plans

1. The opening of new bank branches must comply with an annual or multi-annual expansion plan, duly approved by the Board of Directors or equivalent body of the institution, as established in paragraph 3 of Article 10 of the Regulation of the Law on Credit Institutions and Financial Companies.
2. The expansion plans of banks must consider, among others, the criterion of geographic proportionality established in Article 4.
3. The plan referred to in paragraph 1 of this article, as well as any amendments, must be submitted to the Bank of Mozambique within 30 days from the date of approval.

ARTICLE 4 Criteria and Locations for Bank Branch Openings

1. Banks must apply to open branches observing the geographic proportionality criterion: for every three (3) new branches, the first opening must be in one of the locations listed in the appendix to this Notice, and the remaining ones at the bank's free choice.
2. If the applying bank does not have branches in capital cities, branch openings must follow this criterion: for every three (3) new branches, the second opening must be in one of the locations listed in the appendix, and the remaining ones at the bank's free choice.
3. The representation of banks in locations listed in the appendix through other forms, namely banking agents, does not prejudice compliance with the geographic proportionality criterion established in paragraphs 1 and 2 of this article.
4. Updates to the list of locations referred to in this Notice are published via Circular and on the Bank of Mozambique's website.

ARTICLE 5 Relocation and Effect of Branch Closures

1. The relocation of branches established in one of the locations listed in this Notice may only be made to another location indicated in the same list, and the bank must notify the Bank of Mozambique in writing of its intention and supporting reasons at least 30 days prior to the effective date.
2. The timeframe and communication conditions established in the preceding paragraph apply to address changes of branches within the same listed location.
3. The closure of a branch in one of the locations listed in the appendix is taken into account when assessing subsequent applications for branch openings, observing the criterion established in Article 4.

ARTICLE 6 Authorization Process for Branch Openings and Closures The authorization process for the opening and closure of bank branches is governed by the provisions of the Law on Credit Institutions and Financial Companies and its respective Regulation.

CHAPTER II (Treatment of Branches Opened in Listed Locations at the Date of Notice)

ARTICLE 7

1. Banks that, before the effective date of this Notice, had opened branches in one of the locations listed in the appendix enjoy the following treatment: the opening of the first two (2) branches may be at their free choice, and the third must be in one of the locations listed in the appendix.
2. The provision in the preceding paragraph applies only to the first application for opening branches in a set of three (3) branches, with subsequent applications subject to the criterion established in Article 4 of this Notice.

ARTICLE 8 Sanctioning Regime Violation of the provisions of this Notice constitutes a regulatory offense punishable under the Law on Credit Institutions and Financial Companies.

ARTICLE 9 Clarification of Doubts Doubts arising from the interpretation and application of this Notice must be submitted to the Regulation and Licensing Department.

ARTICLE 10 Entry into Force This Notice enters into force on the date of its publication, revoking any contrary provisions.

Bank of Mozambique, February 18, 2015. — The Governor of the Bank of Mozambique, Ernesto Gouveia Gove.

Appendix to Notice No. 1/GBM/2015 (Referenced in Articles 4 and 7) List of Eligible Locations for Bank Branch Openings

Niassa Province

1. Lago
2. Majune
3. Maúa
4. Mavago
5. Mecanhelas
6. Mecula
7. Metarica
8. Muembe
9. [List continues]
10. [List continues]
11. Sanga

Cabo Delgado Province

1. Ancuabe
2. Balama
3. Ibo
4. [List continues]
5. Meluco
6. Muidumbe
7. [List continues]
8. [List continues]
9. Quissanga

Nampula Province

1. Lalaua
2. Larde
3. Liúpo
4. Mecuburi
5. Memba
6. Mogincual
7. Moma
8. Mossuril
9. Muecate
10. Murrupula
11. [List continues]
12. Repale
13. Ribaué

Tete Province

1. Chifunde
2. Chiúta
3. [List continues]
4. Magoé
5. Marara
6. Marávia
7. Mutarara
8. Tsangano
9. Zumbo

Zambézia Province

1. Chinde
2. Derre
3. Gilé
4. Ile
5. Inhassunge
6. Luabo
7. Lugela
8. Maganja da Costa
9. Mocubela
10. Molumbo
11. Mopeia
12. Mulevala
13. [List continues]
14. [List continues]
15. Pebane

Manica Province

1. Gondola
2. Guro
3. Macate
4. Machaze
5. Macossa
6. Mossurize
7. Vandúzi

Sofala Province

1. Chemba
2. Cheringoma
3. Chibabava
4. Machanga
5. Maringué
6. Muanza

Gaza Province

1. Chicualacuala
2. Chigubo
3. Guija
4. Mabalane
5. Massangena

Inhambane Province

1. Funhalouro
2. Mabote
3. Morrumbene
4. Panda

Notice No. 2/GBM/2015 of April 22

In view of the various actions undertaken to implement a payment system ensuring the integration of electronic payment terminals from different credit institutions, and to guarantee effective inspection and supervision over such activities within the national framework, the Bank of Mozambique has developed one of its first actions by creating the Interbank Society of Mozambique (SIMO), an entity dedicated, among other activities, to installing, setting up, and managing the electronic payment network system in the country. Alongside this action, the Government approved the Strategy for the National Single Electronic Payments Network (MARPE) of 2015, which outlines concrete actions aimed at promoting financial inclusion and the expansion of electronic payment services that ensure service and product expansion, guaranteeing access to banking services for the majority of the population at affordable prices. In this context, and with a view to optimizing payment infrastructure, Decree No. 30/2014 of June 5 was approved, which establishes, among other matters, the obligation for internal operational management systems of credit institutions to connect to the national single, common, and shared electronic payments network. The same legal instrument assigns the Bank of Mozambique, as the National Payment System Operator, the responsibility for managing this connection, including the adaptation periods for credit institutions already operating. Thus, to ensure the connection of internal operational management systems of credit institutions and financial companies to the National Single Electronic Payments Network, in accordance with paragraph 2 of Article 7 of the Regulation of the Law on Credit Institutions and Financial Companies approved by Decree No. 56/2004 of December 10, as amended by Decree No. 30/2014 of June 5, the Bank of Mozambique determines:

CHAPTER I General Provisions

ARTICLE 1 Object This Notice establishes the terms and conditions for connecting the internal operational management systems of banks, as specified in the following article, to the National Single, Common, and Shared Electronic Payments Network.

ARTICLE 2 Scope of Application

1. This Notice applies to credit institutions and financial companies that operate electronic payment services, including payment services provided by the National Single Electronic Payments Network.