Notice No. 02/GBM/2015, of 22 April - Connection to the National Single Electronic Payments Network

22 DE ABRIL DE 2015 185 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. Pebane Manica Province
14. Gondola
15. Guro
16. Macate
17. Machaze
18. Macossa
19. Mossurize
20. Vandúzi Sofala Province
21. Chemba
22. Cheringoma
23. Chibabava
24. Machanga
25. Maringué
26. Muanza Gaza Province
27. Chicualacuala
28. Chigubo
29. Guija
30. Mabalane
31. Massangena Inhambane Province
32. Funhalouro
33. Mabote
34. Morrumbene
35. Panda

Notice No. 2/GBM/2015 of 22 April

Considering that, within the framework of pursuing various actions, the implementation of a payment system that ensures the integration of electronic payment terminals from various credit institutions and financial societies, as well as their connection to the Single, Common and Shared Electronic Payments Network, and the respective inspection and supervision of such activities, within the regulatory framework of the Bank of Mozambique, it is necessary to determine the conditions and deadlines for the connection of credit institutions and financial societies already in operation.

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 the installation, setup, and management of electronic payment system networks, with the mission of fostering the expansion of electronic payment services in the Country.

Alongside this action, the Government approved the Financial Development Strategy (2011-2015), which provides for concrete actions aimed at promoting financial inclusion, through the development and expansion of payment infrastructures that ensure the expansion of financial services and products not only in urban areas but also in rural areas, attributing to the Bank of Mozambique their operationalization.

Financial inclusion, as a condition for economic growth and development, requires that products and services adequate to the needs of the majority of the population be made available at affordable prices.

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

Thus, given the need to ensure the connection of the internal operations management systems of credit institutions, financial societies, and payment service providers under the provisions of paragraph 2 of Article 7 of the Regulation of the Law of Credit Institutions and Financial Societies approved by Decree No. 56/2004 of 10 December, with the amendments introduced by Decree No. 30/2014 of 5 June, the Bank of Mozambique determines:

CHAPTER I General Provisions

ARTICLE 1 Subject Matter This Notice establishes the terms and conditions for the connection of the internal banking operations management systems of the entities specified in the following article to the Single, Common and Shared Electronic Payments Network, designated as SIMO-rede.

ARTICLE 2 Scope of Application

1. This Notice applies to credit institutions, financial societies, and payment service providers authorized to issue electronic payment instruments and provide electronic payment services, including those under the Bank of Mozambique.
2. Payment service providers that may be 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 connection of electronic payment terminals of credit institutions, financial societies, and payment service providers not yet connected to any network; b) Connection to the SIMO-rede: the link established between the internal banking operations management systems of credit institutions, financial societies, and payment service providers, and the SIMO-rede; c) Location with an electronic payment terminal: the interior or exterior of a credit institution or financial society branch, or of a payment service provider, where an Automated Teller Machine/ATM or a Point of Sale/POS terminal is operating; d) Migration of electronic payment terminals: the configuration or reconfiguration of electronic payment terminals of credit institutions, financial societies, and payment service providers to connect to the SIMO-rede; e) Network Operator: the entity responsible for the management of the National Electronic Payments Network, designated as the Mozambique Interbank Society, S.A. (SIMO); f) SIMO-rede: the single, common and shared national network, exclusively used by credit institutions, financial societies, and payment service providers, covering all types of electronic transactions, including the management of information related to cards and other electronic payment instruments, as well as terminals and electronic payment services, including financial products, defined as such under paragraph b) of Article 7 of the Regulation of the Law of Credit Institutions and Financial Societies, designated as SIMO-rede, including the shared solution for payment service providers; g) Electronic Payment Products and Services: all those provided to the public by credit institutions, financial societies, or payment service providers, through electronic payment terminals (Automated Teller Machines/ATMs, Point of Sale/POS terminals, or other channels); h) Internal banking operations management systems: the computer systems whose function is to manage the operations of clients of credit institutions and financial societies, as defined under paragraph a) of Article 7 of the Regulation of the Law of Credit Institutions and Financial Societies, including the systems of payment service providers; and i) Electronic payment terminals: Automated Teller Machines/ATMs, Point of Sale/POS terminals, 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 for providing electronic payment products and services

1. Credit institutions, financial societies, and payment service providers must, after authorization of their establishment by the Bank of Mozambique and as a condition for starting to provide electronic payment products and services, connect to the SIMO-rede.
2. The electronic payment terminals of credit institutions, financial societies, and payment service providers not yet connected to any network must be installed on the SIMO-rede.

ARTICLE 5 Duty to Inform

1. The Network Operator must provide the Bank of Mozambique with information regarding connection to the Single Payments Network, including the number and location of electronic payment terminals of credit institutions, financial societies, and payment service providers operating under this Notice.
2. The Bank of Mozambique establishes, by circular, the elements, conditions, and periodicity of the information provided for in the preceding paragraph.

ARTICLE 6 Responsibilities of Credit Institutions, Financial Societies, and Payment Service Providers Credit institutions, financial societies, and payment service providers must, inter alia: a) Create the necessary conditions for their connection, migration, and/or installation of electronic payment terminals to the SIMO-rede, without prejudice to the provisions established in this Notice; b) Provide the Network Operator with the information necessary to fulfill their responsibilities under Article 7, whenever requested; c) Disclose to the Network Operator any relevant information arising from their participation in the SIMO-rede; and d) Cooperate generally for the proper functioning of the SIMO-rede.

ARTICLE 7 Responsibilities of the National Single Network Operator Without prejudice to the organizational and functioning principles established in their respective statutes and other instruments, the Network Operator must, inter alia: a) Connect to the SIMO-rede; b) Publish the access and functioning procedures for the SIMO-rede for credit institutions, financial societies, and payment service providers; c) Ensure and coordinate the connection process to the SIMO-rede, including the installation and/or migration of electronic payment terminals, within the deadlines and conditions established in this Notice; d) Make available to credit institutions, financial societies, and payment service providers electronic payment products and services and terminal network management; e) Report to the Bank of Mozambique any irregularities observed in the exercise of its functions; and f) Submit to the Bank of Mozambique information on service functioning procedures prior to their implementation and statistical information.

CHAPTER III Deadlines for Connection and Migration

ARTICLE 8 Migration Deadline for Credit Institutions and Financial Societies Connected to the National Single Network

1. Credit institutions and financial societies already connected to the SIMO-rede that have more than one electronic payment terminal must migrate, at least, half of these terminals to the SIMO-rede, under the following conditions and schedule: a) At least one electronic payment terminal within 3 months, counting from the date of entry into force of this Notice; and b) The remaining terminals in the locations referred to in the preceding paragraph, at least within 6 months, counting from the date of entry into force of this Notice.
2. The credit institutions and financial societies referred to in this article must complete the migration of the remaining part of their electronic payment terminal portfolio to the SIMO-rede, under the following conditions and schedule: a) A minimum of 75% of this terminal portfolio within 9 months, counting from the date of entry into force of this Notice; and b) The entire portfolio of these terminals within 12 months, counting from the date of entry into force of this Notice.

ARTICLE 9 Connection and Migration Deadline for Credit Institutions and Financial Societies Not Connected to the National Single Network Credit institutions and financial societies not yet connected to the SIMO-rede must proceed to connection and, in all locations where they have electronic payment terminals, migrate to the SIMO-rede, under the following conditions and schedule: a) At least half of these terminals within 6 months, counting from the date of entry into force of this Notice; b) A minimum of 75% of this terminal portfolio within 9 months, counting from the date of entry into force of this Notice; and c) The entire portfolio of these terminals within 12 months, counting from the date of entry into force of this Notice.

ARTICLE 10 Adjustment of Electronic Payment Products and Services to the National Single Network The SIMO-rede must adapt the electronic payment products and services currently available on the networks of credit institutions and financial societies to the SIMO-rede within 6 months, counting from the date of entry into force of this Notice.

ARTICLE 11 Development of New Electronic Payment Products and Services

1. From the date of entry into force of this Notice, new electronic payment products and services developed by credit institutions, financial societies, and payment service providers must be implemented on the SIMO-rede.
2. The Network Operator ensures, in coordination with credit institutions, financial societies, and payment service providers, the development of products and services referred to in the preceding paragraph.

ARTICLE 12 Sanctioning Regime Violation of the provisions of this Notice constitutes an administrative offense under Law No. 2/2009 of 23 February, of the Law of Credit Institutions and Financial Societies or the Law of the Bank of Mozambique and Payments, as applicable, depending on whether it is committed by credit institutions and financial societies or payment service providers, respectively.

ARTICLE 13 Clarifications Doubts arising in 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, 13 March 2015. — The Governor of the Bank of Mozambique, Ernesto Gouveia Gove.