Notice No. 001/GGBM/2000 of 16 February - Clearing Service Regulations

BANCO DE MOÇAMBIQUE NOTICE NO. 001/GGBM/2000 SUBJECT: CLEARING SERVICE REGULATIONS

The Bank of Mozambique, exercising the competence conferred upon it by Article 43 of Law 1/92, of January 3 - Organic Law of the Bank,

APPROVES

"The Clearing Service Regulations," which constitute the Annex to this Notice and form an integral part thereof.

This Notice enters into force immediately, revoking Notice 13/GGBM/94, of February 28, and other provisions to the contrary.

Doubts arising in the interpretation and application of this Notice shall be submitted to the Issuance and Treasury Department of the Bank of Mozambique.

Maputo, February 16, 2000.

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The Governor

CLEARING SERVICE REGULATIONS

CHAPTER I GENERAL PROVISIONS

Article 1 (Object)

1. These Regulations aim to establish the operating rules for the clearing service of checks and other negotiable instruments.
2. The clearing service is carried out through clearing sessions.

Article 2 (Sessions)

1. Clearing sessions must be conducted with participation limited to personnel strictly indispensable for the conduct of the respective session;
2. The premises where clearing sessions are held are referred to as "Clearing Houses."

Article 3 (Participants) The following entities participate in the clearing service: a) The Bank of Mozambique; b) Credit institutions authorized to receive deposits withdrawable by check; c) Other entities that the Bank of Mozambique may determine.

Article 4 (Coordination)

1. It is the responsibility of the BM to coordinate the clearing sessions.
2. In places where there is more than one branch, and the BM is not represented, the clearing service will be performed by the institution indicated by the Bank of Mozambique.

Article 5 (Scope of Clearing) Three levels of clearing are established: a) Local – which covers participants whose branches are located in any place where more than one participating institution is represented, allowing for the possibility of participants from different neighboring places to meet in a single clearing house and hold their clearing sessions there. b) Integrated Regional – which covers participants whose branches are located in the same region previously determined by the Bank of Mozambique. c) National – which covers participants from all entities referred to in Art. 3 that are installed in the country.

Article 6 (Costs) The costs with employees, forms, physical space, energy, and other analogous items, borne by the Bank of Mozambique in Maputo and by the delegated institution in other localities, shall be shared among the participants in the Clearing of the locality, based on a monthly assessment.

CHAPTER II PAYMENTS SUPPORT GROUP

Article 7 (Composition) The Payments Support Group is composed of one representative from each institution referred to in Art. 3 of these Regulations and is coordinated by the Bank of Mozambique.

Article 8 (Powers) The Payments Support Group is responsible for: a) Expressing opinions, on its own initiative or when requested, on matters related to the Payment System. b) Submitting to the Bank of Mozambique studies, suggestions, or recommending measures that contribute to the continuous improvement of the Payment System. c) Constituting subgroups of its members, permanently or provisionally, to collaborate in the study and appreciation of specific matters. d) Drafting its Internal Regulations.

CHAPTER III FORMALITIES FOR CLEARING

Article 9 (Documents) The following documents are processed in clearing: a) Checks; b) Payment Orders for debit and credit; c) Public Securities, clearable only in the place of draw; d) Return Communication (RC), according to Annex VI.

Article 10 (Requirements of Documents) Documents subject to clearing must contain the clearing stamp according to the account in Annex III-A, date of exchange, name of the sender, and the mention "Settlement via the Clearing Service."

Article 11 (Stamps)

1. In clearing, only stamps and models whose patterns have been defined and approved by the Bank of Mozambique shall be used.
2. The affixing, on any document subject to clearing, of the clearing stamp is equivalent, for all legal purposes, to the signature of the participating sender.
3. Until the respective clearing is considered perfect and complete, the receiving participant is a fiduciary depositary of the documents sent to them by the sending participant.
4. Regarding checks, the following must also be observed: a) The affixing of the clearing stamp also makes the sending participant responsible, before the drawee institution, for irregularities in the series of endorsements. b) Checks liquidated via the National Clearing System must be exchanged separately from others, in sessions in Maputo or in any place, provided that the drawee establishments are represented in the respective clearing house.

CHAPTER IV RETURN OF DOCUMENTS

Article 12 (Return Communication) The Return Communication (RC) aims to allow the drawee bank to anticipate the data of checks returned to the bank accepting the deposit, when this bank is not represented in the place of the drawee branch, observed that: a) It is the responsibility of the Bank of Mozambique to disclose to participants the standardized model of the RC, the filling instructions, and the operational procedures to be observed by institutions. b) Provided that there are rapid communication means in the place of draw and origin, the drawee bank must issue an RC, observing the provisions in the body of this article, as well as the deadlines in Annex II. c) The check corresponding to the RC must be delivered in the same place where it was presented for clearing, observing the deadlines in Annex II. d) Losses resulting from incorrect information or transcription of the data contained in the RC are borne by the party that transcribed or informed them incorrectly, considering the following: i – The endorsing bank is responsible for the correct affixing on the back of the check, the name of the branch, and the account number of the depositor. ii – The bank issuing the RC is responsible for the exact transcription of the data contained in the returned checks.

Article 13 (Deadlines for Availability and Return)

1. The deadline for fund availability of checks drawn on the place of presentation is 24 hours counted from the day of the presentation session until the first subsequent business day.
2. The deadlines for fund availability of checks drawn on places different from the presentation are those contained in the Table of Annex II.
3. The deadlines for the return of checks liquidated via the National Clearing System are those contained in Annex II, with deadlines to be counted from the business day following the date of exchange.
4. The Return Communication (RC) may be challenged by the bank receiving the deposit: a) For the same reasons and deadlines established in no. 3 of Article 17 of these Regulations. b) For lack or insufficiency of the requirements provided for in Art. 10 of these Regulations. c) On the business day following the deadlines provided in Annex II, when the corresponding check is not delivered to the bank receiving the deposit.
5. The causes determining the return must be mentioned on the back of the documents, in a legible manner and without erasures, indicating always the existence or non-existence of sufficient funds.
6. Documents may be returned for one of the following reasons, according to Annex IV. 11 – Insufficiency of funds; 13 – Account closed; 15 – Frozen Account; 21 – Written order from the issuer duly justified; 22 – Discrepancy and/or insufficiency in the issuer's signature, 31 – Improper clearing; 32 – Absence or irregularity in the Clearing Stamp; 43 – More than six months have elapsed since the term of the presentation deadline for payment.
7. In the return of checks sent to the national clearing system, the following must be observed: a) Returns must occur: i – in the same place where they were exchanged; ii – in the place of the drawee branch, when the endorsing bank is present or represented there; b) The cause determining the return and the date of the challenge must always be indicated by means of a return stamp, according to Annex III-B, in a legible manner and without erasures. c) On the upper external part of the return stamp, the date of the return session must be indicated. d) Participants cannot challenge, during the session, the return of checks whose deadlines for this purpose have expired. e) Challenges made improperly, during the session, regarding the return of checks of documents, must be made until the subsequent return session.
8. The costs resulting from the return of checks for reasons 11, 13, 15, and 21 of no. 6 of this article are borne by the drawer.

CHAPTER V CLEARING SESSIONS

Article 14 (Presentation)

1. The Presentation Session takes place on each business day at 08:30 hours.
2. Presentation is processed through direct delivery to each recipient of the documents to be cleared for debit and credit listed on a specific form according to Annex V. The sender must expressly declare the quantity and total value of the documents, assuming full responsibility for them.
3. Irregularities eventually found are the responsibility of: a) The Sender, when they relate to: i – summation error; ii – lack of indication or incorrect indication of the quantity of documents; iii – documents devoid of the clearing stamp; iv – lack of the requirements provided for in Article 10 of these Regulations. b) The Recipient, when related to the processing of checks printed without observance of established standards.

Article 15 (Return)

1. The return session is held on the business day following the presentation at 15:00 hours;
2. The session coordinator must examine the movement of at least one participant in each return session, verifying the existence of the declaration on the back of the documents and the reasons that determined the return. If irregularities are found, the necessary corrections must be made immediately.
3. Irregularly made document returns may be challenged by participants: a) Until the subsequent return session, b) At any time, when documents are returned outside the established deadlines.
4. Corrections resulting from challenges must be made in the session in which the challenge occurred.

CHAPTER VI END OF SESSION

Article 16 (Balances and Closing of Session)

1. The assessment of balances corresponding to the position of each participating Institution is determined in each session according to the records in the Clearing Sheet, according to Annex VI.
2. It is the exclusive responsibility of the presenting Institution the correspondence between the values inscribed in the clearing sheets and the values of the documents to which they refer.
3. Balances assessed in a local clearing system, in which the Bank of Mozambique is not present, will be regularized daily by transfer to the headquarters of the Bank of Mozambique in Maputo, which will make the entry in the Reserve accounts of the participating institutions.
4. Participants must book the daily movement according to the norms fixed by the Bank of Mozambique.
5. At the end of each session, the Bank of Mozambique will prepare debit/credit notices corresponding to the value of the balance, which will be delivered to the representatives of the participating institutions.
6. Clearing is only considered terminated after the closing of the return session with all balances regularized.

CHAPTER VII FINAL PROVISIONS

Article 17 (Obligation to Participate in Sessions)

1. Each participant of the clearing service must be represented at their respective sessions by at least two representatives previously indicated to the coordinator of the clearing services of the respective territorial area.
2. The coordinator of the respective clearing service reserves the right to reject the proposed representatives when in possession of discrediting information that indicates they may compromise the smooth running of the sessions.

Article 18 (Penalties) Non-observance of the norms governed by these Regulations is subject to sanctions under the terms provided for in Notice no. 1/GGBM/96, of May 13, regarding the grading and application of penalties and fines.

ANNEX 1 RETURN COMMUNICATION – RC RETURN COMMUNICATION – RC DRAWEE BANK: ______________________ PRESENTING BANK OF CHECK ______________________ ISSUER DATA: NAME: ________________________________ ACCOUNT NO. __________________________________________ CHECK NO. ________________________ VALUE __________________________________________________ DEPOSITOR DATA NAME: ________________________________ DEPOSIT ACCOUNT NO. __________________________________ BRANCH _____________________________ EXCHANGE DATE ______________________ REASON FOR RETURN ______________________ ..................................................................... SIGNATURE OF DRAWEE BANK DATE 3 COPIES 1st Copy: Deliver to presenting bank 2nd Copy: Deliver to presenting bank with attached check. 3rd Copy: Receive stamped by Presenting Bank upon delivery of the 2nd Copy with the check

TABLE OF DEADLINES FOR AVAILABILITY AND RETURN OF CHECKS (IN BUSINESS DAYS) ANNEX II DRAWEE LOCALITY PLACE OF EXCHANGE MAPUTO “A” BEIRA AND NAMPULA E XAI-XAI “B” OTHER PROVINCIAL CAPITALS WITH LOCALITIES OF MAPUTO PROVINCE “C” BRANCHES SITUATED IN THE SAME PROVINCE, EXCEPT IN MAPUTO PROVINCE “D” BRANCHES SITUATED IN ANOTHER LOCATION OR PROVINCE DIFFERENT “E” LOCALITY OF DIFFICULT ACCESS “SEE NOTE” “F” “A” - 5 10 15 25 30 “B” 5 5 10 15 25 30 “C” 10 15 25 30 “D” 15 25 30 “E” 25 30 “F” 30 Explanatory Notes

1. GROUP “F” – LOCALITIES: Chicualacuala, Massingir, Vilanculos, Ulongue, Zóbue, Alto Molocue, Gurué, Milange, Pebane, Malema, Namapa, Marrupa, Mocímboa da Praia and Mueda. Obs.: The deadlines above foresee the use of RC-Return Communication. The physical delivery of the check to the Presenting Bank must occur double the deadline provided for return in the cases of Groups “A” and “B”. In other groups, physical return must occur within the deadlines provided in the table.
2. The place of Maputo encompasses checks deposited/drawn on Matola;
3. The place of Chimoio encompasses checks deposited/drawn on Soalpo.
4. Maputo-City and Maputo-Province are considered part of the same Province.

ANNEX III A – CLEARING STAMP 50 mm 40 mm SETTLEMENT VIA THE CLEARING SERVICE CHECKS AND OTHER INSTRUMENTS DD/MM/YYYY BANK ALPHA “PLACE” B – RETURN STAMP 50 mm 40 mm RETURN TO THE SERVICE OF CLEARING REASON: ______________________ DD/MM/YYYY (PLACE) SIGNATURE BANK ALPHA

ANNEX IV GUIDE FOR REMITTANCE OF VALUES DELIVERED FOR CLEARING No.______________ _____________ th SESSION ________________, // PRESENTING: ___________________________________________________________________ RECIPIENT: ____________________________________________________________________ PRESENTED CODE OP QUA NT

• AMOUNT Checks-Place Checks-Other Places Finance Titles Payment Orders Debit Payment Orders Credit 50 55 60 65 70 Sum RETURNED For insufficiency of funds Account closed Frozen Account Justified Order Discrepancy and/or absence Of drawer's signature Finance Title Improper Clearing Lack or irregularity in Clearing Stamp . Doc. of Difference Adjustment Prescribed Check 11 13 15 21 22 24 31 32 41 43 Sum Total Quantity ** Assessed. PRESENTING CREDIT INSTITUTION THE REPRESENTATIVES

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VALUES ABOVE DISCRIMINATED RECEIVED CREDIT INSTITUTION RECIPIENT THE REPRESENTATIVES

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• Sign (+) or (-), if the nature of the title to be moved originates an entry in favor or not of the presenting institution ** Nature of Assessment: (+) Creditor (-) Debtor | | | | , MT

ANNEX V LISTING OF VALUES DELIVERED FOR CLEARING PRESENTING – (CODE AND ACRONYM) ____________________________________ RECIPIENT – (CODE AND ACRONYM) _____________________________________ ORDER NUMBER TITLE NUMBER AMOUNT 1 2 3 4 5 “ “ “ 25 26 27 28 29 30 PRESENTING CREDIT INSTITUTION THE REPRESENTATIVES

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SHEET No. _______________ th SESSION OPERATION CODE AND NATURE OF TITLE _________________________________

ANNEX VI CLEARING SHEET _____________ th SESSION SHEET No. _________ PRESENTING: (CODE AND ACRONYM) ASSESSMENTS DELIVERED RECEIVED No. OF GUIDE CREDIT INSTITUTION SIGNATORY (CODE AND ACRONYM) AMOUNT AMOUNT SUM BALANCE

• NATURE OF ASSESSMENT/BALANCE: (+) Creditor (-) Debtor , MT

ANNEX VII DIFFERENCE ADJUSTMENT DOCUMENT – DAD 150 mm DIFFERENCE ADJUSTMENT DOCUMENT – DAD RECIPIENT BANK: ______________________________________________ EXCHANGE/RETURN DATE: DD/MM/YYYY (AMOUNT OF DIFFERENCE) MT WE DEBIT/CREDIT THIS BANK, THE VALUE OF THE DIFFERENCE, ASSESSED IN THE MOVEMENT ABOVE, ACCORDING TO ATTACHED JUSTIFICATIONS, OCCURRED IN THE SESSION OF (EXCHANGE OR RETURN). (SIGNATURES)

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ISSUING BANK PLACE AND DATE