Notice No. 10/GBM/2013 - Minimum Requirements for the Opening and Movement of Deposit Accounts at the Bank of Mozambique

Bank of Mozambique Governor

Notice No. 10/GBM/2013 Maputo, July 4, 2013

Subject: MINIMUM REQUIREMENTS FOR THE OPENING AND MOVEMENT OF DEPOSIT ACCOUNTS AT THE BANK OF MOZAMBIQUE

Given the need to regulate the opening, movement, blocking, and closure of deposit accounts at the Bank of Mozambique, under the combined provisions of paragraph c) of Article 41 and paragraph d) of paragraph 2 of Article 37, both of Law No. 1/92 of January 3, as well as paragraph 5 of Article 143 of the Constitution of the Republic of Mozambique, the Bank of Mozambique approves:

The MINIMUM REQUIREMENTS FOR THE OPENING AND MOVEMENT OF DEPOSIT ACCOUNTS AT THE BANK OF MOZAMBIQUE, attached to this Notice, forming an integral part thereof.

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

Any doubts arising in the interpretation and application of this Notice shall be submitted to the Issuance and Payment Systems Department of the Bank of Mozambique.

[Signature] Ernesto Gouveia Gove Governor

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Bank of Mozambique Governor

Annex

MINIMUM REQUIREMENTS FOR THE OPENING AND MOVEMENT OF DEPOSIT ACCOUNTS AT THE BANK OF MOZAMBIQUE

CHAPTER I GENERAL PROVISIONS

Article 1 Object

This Regulation establishes the minimum requirements for the opening, movement, blocking, and closure of deposit accounts in national and foreign currency at the Bank of Mozambique.

Article 2 Scope of Application

This Regulation applies to credit institutions headquartered in the country, branches of credit institutions headquartered abroad, and other entities permitted by law, who are holders of deposit accounts in national or foreign currency at the Bank of Mozambique.

Article 3 Definitions

For the purposes of this Regulation, the following are understood as:

a) Opening of a deposit account – the act by which the holder of a deposit account is registered at the Bank of Mozambique and the movement of funds begins;

b) Blocking of a deposit account – the restriction, for a determined period, of the powers of holders to freely move funds maintained in the deposit account opened at the Bank of Mozambique;

c) Deposit account – the organized accounting record referring to operations carried out within the scope of that account, which allows the respective holder to perform banking operations, in accordance with the rules established by the Bank of Mozambique;

d) Closure of a deposit account – the termination of the contract for the opening of the deposit account at the Bank of Mozambique;

e) Movement of the deposit account – the debit or credit operation of values in the deposit account;

f) Holders of deposit accounts – Credit institutions and branches of credit institutions headquartered abroad and entities authorized to open a deposit account at the Bank of Mozambique, under the terms and conditions established by it.

CHAPTER II OPENING, MOVEMENT, BLOCKING, AND CLOSURE OF DEPOSIT ACCOUNTS IN NATIONAL AND FOREIGN CURRENCY

Section I Opening and movement of accounts

Article 4 Holders and requirements for account opening

1. The following may be holders of deposit accounts in national and foreign currency at the Bank of Mozambique:

a) Credit institutions authorized to exercise their activity in Mozambique; b) Branches of credit institutions headquartered abroad; c) Other entities permitted by law.

2. At the time of opening deposit accounts, the entities referred to in the previous paragraph must present:

a) Application for opening a deposit account, signed by a competent person in the entity; b) Institutional Client Form duly completed and signed by a competent person in the entity; c) Attorney-in-Fact Client Forms duly completed and signed by a competent person in the entity; d) Signature Card duly completed; e) Articles of Association or Minutes of the General Assembly of the Company; f) Power of Attorney issued in favor of the entity's representatives; g) Authorization to exercise the activity issued by the Bank of Mozambique; h) Unique Tax Identification Number (NUIT); and i) Certified copies of valid identification documents of the attorneys-in-fact, in accordance with Article 10 of Law No. 7/2002 of February 13, Article 8 of Decree No. 37/2004 of September 8, with the amendments introduced by Decree No. 1/2006 of February 28.

3. The decision on the application for opening a deposit account is taken within 04 (four) days, counted from the date of its receipt, and must be notified in writing to the requesting entity.

Article 5 Number of admissible accounts

1. The entities provided for in paragraph 1 of Article 4 of this Regulation may only:

a) open a single deposit account, in national currency; b) open a deposit account for each denomination in foreign currency.

2. An exception to the preceding number is the obligation to open a new account, at the Bank of Mozambique, for the purposes of clearing and other types of operations, in accordance with the Regulation on the determination and constitution of mandatory reserves.

Article 6 Movement and consultation of accounts in national and foreign currency

1. The conditions for the movement and consultation of a deposit account are contained in the Signature Card referred to in paragraph d) of paragraph 2 of Article 4 of this Regulation.

2. The alteration of the conditions for movement and consultation referred to in the preceding paragraph must be previously notified to the Bank of Mozambique.

Article 7 Balances in accounts

1. Deposit accounts must have a balance equal to or greater than zero.

2. In light of monetary policy objectives, the Bank of Mozambique may establish the maximum and minimum balances to be recorded in each of the accounts in national and foreign currency.

3. The method of calculation and the operationalization of the provisions of the preceding paragraph are defined by the Bank of Mozambique.

Article 8 Settlement of accounts in national currency

1. In the event of lack or insufficiency of funds in the national currency account to carry out certain operations, these may be settled upon the presentation of guarantees for the collateralization of intraday credit.

2. For the purposes of the preceding paragraph, the following are considered guarantees: assets established in the Interbank Money Market Regulation and the Regulation on Operations with Fixed Income Securities Repurchase and Resale Agreements.

3. The value date of the operation is the date of settlement or subsequent to the settlement thereof; transactions with a retroactive value date are not accepted.

Section II Blocking and closure of accounts in national and foreign currency

Article 9 Causes, conditions, and effects of blocking of national currency accounts

1. The national currency deposit account is blocked for non-compliance with the Regulation on the determination and constitution of mandatory reserves.

2. National and foreign currency deposit accounts may be blocked in other cases provided for in applicable legislation.

3. For the purposes of paragraph 1 of this Article, the national currency deposit account is blocked on the date indicated and communicated by the Bank of Mozambique to the holder.

4. Once the account is blocked, the holder must proceed to open a new one in accordance with the Regulation on the determination and constitution of mandatory reserves.

Article 10 Causes and conditions for closure of accounts in national and foreign currency

1. Deposit accounts in national and foreign currency may be closed in the following cases:

a) Revocation of the authorization to exercise the activity, in accordance with applicable legislation; b) Request, in writing, from the holder addressed to and signed by a competent person, accompanied by the respective resolution of the competent corporate body.

2. In the case of a deposit account opened in accordance with paragraph 4 of Article 9 of this Regulation, its closure takes place after the fulfillment of the sanction provided for in the Regulation on the determination and constitution of mandatory reserves.

3. For the purposes of the preceding paragraphs, the account is closed:

a) With the publication of the dispatch that determines the revocation of the authorization to exercise the activity; and b) On the date requested by the holder and at the closing time of the Interbank Money Market.

4. Once the account is closed, the balance is transferred to the bank account indicated by the holder or in accordance with the provisions of applicable legislation.

CHAPTER III FINAL PROVISION

Article 11 Sanctioning Regime

The sanctioning regime established by Law No. 15/99 of November 1, with the amendments introduced by Law No. 9/2004 of July 21 – Law on Credit Institutions and Financial Companies – applies to the violation of the minimum requirements provided for in this Regulation.