REPUBLIC GAZETTE OFFICIAL PUBLICATION OF THE REPUBLIC OF MOZAMBIQUE

SUMMARY

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 per subject, containing, in addition to the necessary indications for this purpose, the following endorsement, signed and authenticated: For publication in the "Boletim da República".

IMPRENSA NACIONAL DE MOÇAMBIQUE, E.P.

Banco de Moçambique

Aviso n.º 1/GBM/2015: Concerning the rules and criteria for the opening and closing of Bank Branches.

Aviso n.º 2/GBM/2015: Concerning the connection to the national single electronic payments network.

Wednesday, April 22, 2015 FIRST SERIES — Number 32

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BANCO DE MOÇAMBIQUE

Aviso n.º 1/GBM/2015

de 22 de Abril

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 by improvements recorded in technological and infrastructural domains.

However, there are still areas with economic and infrastructural potential, such as electrical network coverage, roads, and telecommunications, which lack financial services, making it opportune to strengthen existing measures to boost the ongoing financial inclusion process, namely, through the definition of conditions to ensure equitable access to financial services throughout the National territory.

Therefore, the Bank of Mozambique, exercising the competence conferred by paragraph 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, with amendments introduced by Decree No. 30/2014 of June 5, determines:

CHAPTER I

General Provisions

Article 1

Object

1. This Notice establishes rules, conditions, and criteria, including geographical proportionality, for the opening of bank branches, as well as eligible locations for this purpose.
2. This Notice also provides for the effect of closing branches in locations listed in the annex to this Notice.

Article 2

Scope of Application

1. This Notice applies to banks intending to open new branches in the National territory.
2. This Notice does not cover other types of credit institutions and financial companies provided for in Law No. 15/99 of November 1, with amendments introduced by Law No. 9/2004 of July 21 – Law of Credit Institutions and Financial Companies.

CHAPTER II

Rules and Criteria for the Opening of Branches

Article 3

Bank Branch Expansion Plans

1. The opening of new bank branches must follow 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 of Credit Institutions and Financial Companies.
2. In preparing their branch expansion plans, banks must consider, among others, the geographical proportionality criterion established under Article 4 of this Notice.
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 its approval.

Article 4

Criteria and Locations for Opening Bank Branches

1. Banks must apply for the opening of previously planned branches, subject to the following geographical proportionality criterion: for every 3 (three) new branches, the opening of the first must be in one of the locations listed in the annex to this Notice, and the remaining ones in locations of the bank's free choice.

2. If the applying bank does not have branches in capital cities, the opening of branches follows this geographical proportionality criterion: for every 6 (six) new branches, the opening of the second must be in one of the locations listed in the annex, and the remaining ones in locations of the bank's free choice.

3. The representation of banks in locations listed in the annex through other means, namely banking agents, does not prejudice compliance with the geographical proportionality criterion established in paragraphs 1 and 2 of this article.

4. The update to the list of locations referred to in this Notice is published by Circular and on the Bank of Mozambique's website.

Article 5

Change of Premises and Effect of Closing Bank Branches

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 the reasons justifying it, at least 30 days in advance of the effective date.
2. The timeframe and notification conditions established in the preceding paragraph apply to the change of address of branches within the same listed location.
3. The closure of a branch in one of the locations listed in the annex is taken into account when assessing subsequent branch opening applications, observing the criterion established in Article 4.

Article 6

Authorization Process for Opening and Closing Bank Branches

The authorization process for the opening and closing of bank branches is governed by the Law of Credit Institutions and Financial Companies and its respective Regulation.

CHAPTER III

Transitory and Final Provisions

Article 7

Treatment of Branches Opened in Listed Locations at the Time of the Notice

1. Banks that, before the effective date of this Notice, opened branches in one of the locations listed in the annex are subject to the following treatment: the opening of the first 2 (two) branches may be in a location of their free choice, and the third must be in one of the locations listed in the annex.
2. The provision in the preceding paragraph applies only to the first application for opening branches in a set of 3 (three) 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 an offense punishable under the Law of 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.

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Annex to Notice No. 1/GBM/2015

(referred to in Articles 4 and 7)

List of Eligible Locations for the Opening of Bank Branches

Niassa Province

1. Lago
2. Majune
3. Maúa
4. Mavago
5. Mecanhelas
6. Mecula
7. Metarica
8. Muembe
9. Ngauma
10. Nipepe
11. Sanga

Cabo Delgado Province

1. Ancuabe
2. Balama
3. Ibo
4. Mecufi
5. Meluco
6. Muidumbe
7. Namuno
8. Nangade
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. Nacarôa
12. Repale
13. Ribaué

Tete Province

1. Chifunde
2. Chiúta
3. Dôa
4. Magoé
5. Marara
6. Marávia
7. Mutarara
8. Tsangano
9. Zumbo

Zambezia 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. Namacurra
14. Namarroi
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

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Aviso n.º 2/GBM/2015

de 22 de Abril

The Government Program defines as a priority, among various actions, the implementation of a payment system that ensures the integration of electronic payment terminals from various credit institutions and financial companies, combined with strengthening institutional capacity and professionalizing inspection and supervision services over such activities, within the framework of financial system reform, specifically at the level of the National Payments System.

To this end, one of the first actions developed by the Bank of Mozambique culminated in the creation of the Mozambique Interbank Society (SIMO), an entity tasked, among other activities, with installing, setting up, and managing electronic payment system networks, with the mission of massifying the use of electronic payment methods in the Country.

Alongside this action, the Government approved the Strategy for the Development of the Financial Sector 2013-2022, which defines concrete actions aimed at promoting financial inclusion, including establishing payment infrastructures that ensure the expansion of financial services and products in the Country and their availability for financial transactions, particularly in rural areas, assigning the Bank of Mozambique their operationalization.

Within the scope of financial inclusion, credit institutions and financial companies must offer services and products appropriate to the needs of the majority of the population and at accessible prices.

In this context, with a view to optimizing the use of payment infrastructures, Decree No. 30/2014 of June 5 was approved, which establishes, among other matters, the obligation for internal operational management systems of credit institutions and financial companies to connect to the single, common, and shared national electronic payments network. The same legal instrument assigns the Bank of Mozambique the competence to define the procedures and conditions for said connection, including adaptation timeframes for credit institutions and financial companies already in operation.

Therefore, given the need to ensure the connection of internal operational management systems of credit institutions, financial companies, and payment service providers to the aforementioned National Single Electronic Payments Network, under the provisions of paragraph 2 of Article 7 of the Regulation of the Law of Credit Institutions and Financial Companies approved by Decree No. 56/2004 of December 10, with amendments introduced 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 banking entities specified in the following article to the Single, Common, and Shared National Payments Network, hereinafter abbreviated as the "National Single Network".

Article 2

Scope of Application

1. This Notice applies to credit institutions and financial companies authorized to offer products and provide electronic payment services, including mobile financial services, as well as to the Operator of the National Single Network.
2. Payment service providers authorized under applicable legislation are also subject to this Notice.

Article 3

Definitions

For the purposes of this Notice, the following terms are understood as: a) Installation of electronic payment terminals: the configuration of electronic payment terminals of credit institutions, financial companies, and payment service providers not yet connected to any network; b) Connection to the National Single Network: the physical and logical connection between the internal banking operational management systems of credit institutions, financial companies, and payment service providers and those of the National Single Network; c) Location where an electronic payment terminal is located: the interior or exterior of the agency of the credit institution, financial company, or payment service provider where an Automated Teller Machine/ATM is operating, as well as the establishment where a Point of Sale/Payment Terminal/POS is operating; d) Migration of electronic payment terminals: the configuration or reconfiguration of electronic payment terminals of credit institutions, financial companies, and payment service providers to the National Single Network; e) Operator of the Single Network: the entity responsible for managing the National Single Electronic Payments Network, designated as Mozambique Interbank Society, S.A. (SIMO); f) National Single Electronic Payments Network or "National Single Network": the national and exclusive technological solution, commonly and sharedly used by credit institutions and financial companies, whose function consists of managing all electronic transactions, including the management of information related to cards and other electronic payment instruments, as well as electronic payment terminals and services, including mobile financial services, of entities connected to it, as defined in paragraph b) of Article 7 of the Regulation of the Law of Credit Institutions and Financial Companies, designated as SIMOrede, including the solution shared by payment service providers; g) Electronic Payment Products and Services: all those provided to the public by credit institutions, financial companies, or payment service providers, through electronic payment terminals (Automated Teller Machines/ATMs, Point of Sale/Payment Terminals/POS, or other channels); h) Internal banking operational management systems: computer systems whose function consists of managing client operations of credit institutions and financial companies, as defined in paragraph a) of Article 7 of the Regulation of the Law of Credit Institutions and Financial Companies, including payment service provider systems; and i) Electronic payment terminals: Automated Teller Machines/ATMs, Point of Sale/Payment Terminals/POS, and other types of terminals that allow the execution of various banking operations and payment services.

CHAPTER II

Connection and Installation to the National Single Payments Network and Responsibilities

Article 4

Prerequisite Condition for Providing Electronic Payment Products and Services

1. Credit institutions, financial companies, and payment service providers must, after authorization of their establishment by the Bank of Mozambique and as a condition for commencing the provision of electronic payment products and services, including mobile financial services, connect to the National Single Network.
2. Electronic payment terminals of credit institutions, financial companies, and payment service providers not yet connected to any network must be installed on the National Single Network.

Article 5

Duty to Inform

1. The Single Network Operator must provide the Bank of Mozambique with information regarding connection to the National Single Network, as well as the migration and/or installation of electronic payment terminals of credit institutions, financial companies, and payment service providers carried out under this Notice.
2. The Bank of Mozambique establishes, by circular, the elements, conditions, and frequency of the information provided for in the preceding paragraph.

Article 6

Responsibilities of Credit Institutions, Financial Companies, and Payment Service Providers

Credit institutions, financial companies, and payment service providers must, inter alia: a) Create necessary conditions for their connection, migration, and/or installation of electronic payment terminals to the National Single Network, within the timeframes and conditions established in this Notice; b) Provide the Single Network Operator with the information necessary to fulfill their responsibilities stipulated in Article 7, whenever requested; c) Respect the confidentiality of information whose knowledge arises from their participation in the National Single Network; and d) Collaborate generally for the proper functioning of the National Single Network.

Article 7

Responsibilities of the National Single Network Operator

Without prejudice to the organizational and functioning principles established in their respective statutes and other applicable instruments, the Operator of the National Single Network must, inter alia: a) Manage the National Single Network; b) Publish access and functioning procedures of the National Single Network to credit institutions, financial companies, and payment service providers; c) Ensure and coordinate the connection process to the National Single Network, as well as the installation and/or migration of electronic payment terminals, within the timeframes and conditions established in this Notice; d) Make available to credit institutions, financial companies, and payment service providers payment products and services and terminal network management services; e) Ensure the confidentiality of information obtained in the exercise of their functions; and f) Submit to the Bank of Mozambique information on service functioning procedures prior to their implementation and statistical information.

CHAPTER III

Transitory and Final Provisions

Article 8

Migration Timeframe for Credit Institutions and Financial Companies Connected to the National Single Network

1. Credit institutions and financial companies connected to the National Single Network must, in locations where they have more than one electronic payment terminal, migrate at least half of these terminals to the National Single Network within a maximum of 6 months, following these conditions and schedule: a) At least one electronic payment terminal within 3 months, from the effective date of this Notice; and b) The remaining terminals in the locations referred to in this paragraph, by the end of 6 months, from the effective date of this Notice.
2. Credit institutions and financial companies referred to in this article must complete the migration of the remaining electronic payment terminal fleet in all locations to the National Single Network, following these conditions and schedule: a) A minimum of 75% of the terminal fleet within 9 months, from the effective date of this Notice; and b) The total fleet within 12 months, from the effective date of this Notice.

Article 9

Connection and Migration Timeframe for Credit Institutions and Financial Companies Not Connected to the National Single Network

Credit institutions and financial companies not connected to the National Single Network must connect and, in all locations where they have electronic payment terminals, migrate to the National Single Network, following these conditions and schedule: a) At least half of these terminals within 6 months, from the effective date of this Notice; b) A minimum of 75% of the terminal fleet within 9 months, from the effective date of this Notice; and c) The total fleet within 12 months, from the effective date of this Notice.

Article 10

Adjustment of Electronic Payment Products and Services to the National Single Network

The National Single Network must adjust to the electronic payment products and services currently available in the networks of credit institutions and financial companies within 6 months, from the effective date of this Notice.

Article 11

Development of New Electronic Payment Products and Services

1. From the effective date of this Notice, new electronic payment products and services developed by credit institutions, financial companies, and payment service providers must be implemented on the National Single Network.
2. The Single Network Operator ensures, in coordination with credit institutions, financial companies, and payment service providers, the execution of developments aimed at implementing the products and services referred to in the preceding paragraph.

Article 12

Sanctioning Regime

Violation of the provisions of this Notice constitutes an offense punishable under Law No. 15/99 of November 1, with amendments introduced by Law No. 9/2004 of July 21 – Law of Credit Institutions and Financial Companies, or Law No. 2/2008 of February 27 – Law of the National Payments System, depending on whether committed by credit institutions and financial companies or payment service providers, respectively.

Article 13

Clarifications

Doubts arising from the interpretation and application of this Notice must be submitted to the Regulation and Licensing Department of the Bank of Mozambique.

Article 14

Entry into Force

This Notice enters into force on the date of its publication.

Maputo, March 13, 2015. — The Governor of the Bank of Mozambique, Ernesto Gouveia Gove.

Price — 10.50 MT IMPRENSA NACIONAL DE MOÇAMBIQUE, E.P.