Notice No. 01/GBM/2020 of 3 January - Holders of Relevant Management Positions

— Bank of Mozambique — Governor

NOTICE NO. 01/GBM/2020 Maputo, 03 January 2020

SUBJECT: <u>HOLDERS OF RELEVANT MANAGEMENT POSITIONS</u>

The suitability of members of the administrative and supervisory bodies consists in their ability to consistently ensure sound and prudent management practices in credit institutions and financial societies, with a view to safeguarding the financial system and the interests of their respective clients, depositors, investors, and other creditors.

Given the need to define relevant management positions in credit institutions and financial societies and to subject their holders to a special register, the Bank of Mozambique, using the powers conferred upon it by paragraph 1 of Article 19 of Law No. 15/99 of 01 November - Law of Credit Institutions and Financial Societies with the amendments introduced by Law No. 9/2004 of 21 July, determines:

CHAPTER I General Provisions

Article 1 Object

This Notice establishes the criteria and procedures for identifying holders of relevant management positions, whose exercise of their respective functions is subject to special registration at the Bank of Mozambique.

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— Bank of Mozambique — Governor

Article 2 Scope

This Notice applies to holders of relevant management positions and to credit institutions and financial societies.

Article 3 Definitions

For the purposes of this Notice, the following are understood:

a) Administrative Body: a body of a credit institution or financial society with decision-making power, ultimately responsible for defining strategy, objectives, and general direction;

b) Holders of Relevant Positions: employees whose functions confer significant influence on the management of the credit institution or financial society, but who are not members of the administrative body.

CHAPTER II Relevant Management Positions

Article 4 Holders of Relevant Management Positions

1. The holders of relevant management positions are those responsible for the following functions:

— Bank of Mozambique — Governor

a) Internal audit; b) Risk control and management; c) Other functions that may be considered as such by the credit institution or financial society or by the Bank of Mozambique.

2. The risk control and management functions referred to in paragraph (b) of the preceding number must include, at least, the following categories of risks:

a) Credit risk; b) Liquidity risk; c) Interest rate risk; d) Exchange rate risk; e) Operational risk; f) Strategic risk; g) Reputation risk; h) Compliance risk; and i) Information technology risk.

Article 5

Assessment of the suitability of holders of relevant management positions

The Bank of Mozambique may, at any time, carry out a new assessment of the suitability of holders of relevant management positions of credit institutions and financial societies based on circumstances already verified at the time of their appointment or on the basis of any subsequent circumstances.

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— Bank of Mozambique — Governor

Article 6

Duties of credit institutions and financial societies

Under the terms provided for in paragraph (c) of paragraph 1 of Article 4, credit institutions and financial societies must identify and communicate to the Bank of Mozambique the positions whose holders, not belonging to the administrative or supervisory bodies, exercise functions that confer significant influence on their management.

CHAPTER III

Final and Transitional Provisions

Article 7

Sanctioning Regime

The sanctioning regime established in Law No. 15/99 of 01 November, with the amendments introduced by Law No. 9/2004 of 21 July, is applicable to the violation of the provisions of this Notice.

Article 8

Compliance with the current regime

Credit institutions and financial societies must request the special registration of holders of relevant management positions currently exercising their functions, within a period of ninety days, counting from the date of entry into force of this Notice.

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— Bank of Mozambique — Governor

Article 9

Clarification of doubts

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

Article 10

Entry into force

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

Rogério Lucas Zandamela Governor