Regulatory Alerts1998-06-15
Added · Updated
Law No. 5/98 of June 15, 1998 - Cheque Law
The Assembly of the Republic of Mozambique mandates banks to terminate cheque conventions with account holders who fail to regularize unpaid cheques within 10 days of notification. Banks are required to pay cheques up to 250,000.00 MT despite insufficient provisions, and entities with two consecutive terminations are listed as risky, prohibiting all banks from issuing them new cheque books for two years. The law imposes fines ranging from 500,000.00 MT to 6,000,000.00 MT on banks for non-compliance and establishes criminal penalties for issuing cheques without provisions, including temporary prohibitions on cheque usage.
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