Regulatory Alerts2021-12-10
Circular No. 06/EFI/2021, of December 10 - Procedures Arising from the Substitution of LIBOR in the Financial Market
The Banco de Moçambique mandates that credit institutions and financial companies implement specific transition procedures to replace the discontinuing LIBOR reference rate by December 31, 2021. Financial entities must conduct detailed contract reviews, transition to agreed alternative Risk-Free Rates, assess potential financial impacts, and verify their conduct risk management frameworks. Additionally, institutions are required to provide clear, timely, and compliant client communications, present fair alternatives aligned with regulatory fee structures, and maintain robust monitoring programs for global LIBOR developments.
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