Notice No. 10/GBM/2023, Dated December 29 - Regulation for the Electronic Clearing System

SUMMARY
12th SUPPLEMENT
Council of Ministers:
Decree No. 86/2023:
Approves the Regulation for Inspection of Higher Education Institutions and revokes Decree No. 15/2018, dated April 17.
Decree No. 87/2023:
Amends Articles 11 and 22 of the Regulation on Licensing and Operation of Private Employment Agencies, approved by Decree No. 16/2018, dated April 23. Bank of Mozambique:
Notice No. 9/GBM/2023:
Approves the Regulation for the Interbank Transfer and Settlement System.
Notice No. 10/GBM/2023:
Approves the Regulation for the Electronic Clearing System and revokes Notice No. 2/GBM/2021, dated October 19, which approves the Regulation for the Interbank Clearing and Settlement Subsystem. Friday, December 29, 2023 | SERIES I — Number 250

COUNCIL OF MINISTERS
Decree No. 86/2023 dated December 29
As it is necessary to review Decree No. 15/2018 of April 17, which approves the Regulation for Inspection of Higher Education Institutions to align it with the current dynamics of the higher education subsystem in Mozambique, under Articles 54(2) and 56 of Law No. 1/2023 of March 17, the Council of Ministers decrees:

Art. 1. The Regulation for Inspection of Higher Education Institutions, attached hereto, is approved and forms an integral part of this Decree. Art. 2. Decree No. 15/2018 of April 17 is revoked. Art. 3. The executive responsible for overseeing higher education is tasked with approving necessary rules to ensure the application of this Regulation. Art. 4. This Decree enters into force on the date of its publication.

Approved by the Council of Ministers on December 12, 2023.
Published.
The Prime Minister, Adriano Afonso Maleiane.
Electronic edition by Pandora Box, Lda.

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Notice No. 10/GBM/2023 dated December 29
As it is necessary to refine and align the Electronic Clearing System with international best practices, the Bank of Mozambique, exercising its competence under Article 6(2)(c) of Law No. 2/2008 of February 27 (National Payments System Law), determines:

1. The Regulation for the Electronic Clearing System, attached hereto, is approved and forms an integral part of this Notice.
2. Notice No. 2/GBM/2021 of October 19, which approves the Regulation for the Interbank Clearing and Settlement Subsystem, is revoked.

CHAPTER IV
Final Provisions
ARTICLE 21 (Procedures Manual)
The Bank of Mozambique approves, by Circular, the Procedures Manual for the Interbank Transfer and Settlement System.

ARTICLE 22 (Sanctioning Regime)
Violation of the provisions of this Regulation constitutes an offense provided for and punishable under the National Payments System Law.

3. This Notice enters into force on the date of its publication.
   Interpretation and application doubts regarding this Notice shall be submitted to the Banking Services and Payment Systems Department of the Bank of Mozambique. Bank of Mozambique in Maputo, November 20, 2023. — The Governor, Rogério Lucas Zandamela.

Regulation for the Electronic Clearing System
CHAPTER I
General Provisions
ARTICLE 1 (Subject Matter)
This Regulation establishes the rules governing the operation of the Electronic Clearing System.

ARTICLE 2 (Scope of Application)
This Regulation applies to all participants of the Electronic Clearing System.

ARTICLE 3 (Electronic Clearing System)

1. The Electronic Clearing System is the mechanism for exchanging payment instruments between participants via files, calculating multilateral net balances, and transmitting them to the Interbank Transfer and Settlement System for settlement purposes.
2. The Bank of Mozambique operates and manages the Electronic Clearing System.

ARTICLE 4 (Definitions)
The terms used in this Regulation are listed in the attached Glossary, which forms an integral part.

CHAPTER II
Participation
ARTICLE 5 (Participants)
The following are participants of the Electronic Clearing System:
a) the Ministry overseeing the finance sector; b) the Bank of Mozambique; c) credit institutions; d) other entities authorized by the Bank of Mozambique.

ARTICLE 6 (Forms of Participation)

1. Participation in the Electronic Clearing System may be direct or indirect.
2. Direct participation is achieved through the participant's connection to the Electronic Clearing System, in accordance with specifications defined in this Regulation and its Procedures Manual.
3. Indirect participation occurs through representation by a direct participant, who assumes the rights and obligations of the represented institutions vis-à-vis other participants.
4. The Bank of Mozambique decides the transition from indirect to direct participation and vice versa.

ARTICLE 7 (Participation Requirements)
For entities referred to in Articles 5(c) and (d), the following constitute participation requirements for the Electronic Clearing System:
a) being an institution authorized to operate in Mozambique; b) being a participant of the Interbank Transfer and Settlement System; c) holding a settlement account at the Bank of Mozambique; d) being solvent and having no liquidity issues; e) possessing the technical and technological capacity to conduct operations, including check truncation, in accordance with the Procedures Manual for the Electronic Clearing System.

ARTICLE 8 (Authorization for Participation)

1. The Bank of Mozambique authorizes, upon request, participation in the Electronic Clearing System for entities referred to in Articles 5(c) and (d).
2. Applications for participation must be submitted to the Bank of Mozambique by completing a form, at least thirty working days prior to the expected integration date.
3. The Bank of Mozambique may request supplementary information and documents from applicants and conduct necessary verifications for the authorization provided in paragraph 1.
4. The Bank of Mozambique notifies other participants, via email or other means, of new participants' admission and their respective operational start dates.

ARTICLE 9 (Change of Form and Cessation of Participation)
Applications for change of form and cessation of participation must be submitted to the Bank of Mozambique at least ten working days prior to the expected effective date, with necessary adaptations applied to paragraphs 3 and 4 of the preceding article.

ARTICLE 10 (Participants' Responsibilities)

1. Participants' responsibilities include, inter alia:
   a) possessing technical competence and operating with adequate human and material resources to ensure data integrity, security, quality, and efficiency in all activities within the Electronic Clearing System; b) possessing documented and pre-tested technical and operational procedures, including respective amendments; c) storing check images in accordance with applicable legislation.
2. Participants are individually liable for:
   a) any expenses incurred in establishing the primary or secondary installation of the Electronic Clearing System; b) damages arising from messages containing errors or undetectable errors per the User Manual verification procedures; c) any failure of the Electronic Clearing System resulting from incorrect use, software errors, or communication failures originating from their internal systems.
3. The sending participant must:
   a) guarantee the exact reproduction of data contained in payment instruments to be cleared, and assume consequences arising from potential errors in such reproduction; b) retain physical checks for a minimum period of one year after transmitting their images; c) assume errors resulting from poor quality of materials used in production, non-compliance with specifications and instructions in the Procedures Manual for the Electronic Clearing System, and other applicable rules.
4. The receiving participant must verify received information and, in case of non-conformity, process its return, indicating reasons specified in the Procedures Manual.

ARTICLE 11 (Bank of Mozambique's Responsibilities)

1. The Bank of Mozambique, as operator and manager of the Electronic Clearing System, ensures participants:
   a) receipt, processing, and availability of electronic files and images of cleared checks; b) platform availability for checking check images; and c) financial settlement of net results calculated during clearing sessions.
2. The Bank of Mozambique ensures faithful reproduction and availability of data related to operations for each participant, except in contingency or system failure cases.
3. The Bank of Mozambique may delegate operational tasks to third parties, without prejudice to its liabilities toward participants.

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ARTICLE 12 (Duty of Collaboration)
Participants must collaborate upon request and ensure all eligible payment instruments are processed within the stipulated timeframe.

ARTICLE 13 (Suspension and Exclusion of Participants)

1. The Bank of Mozambique determines the suspension or exclusion of participants referred to in Articles 5(c) and (d).
2. Grounds for suspension or exclusion include the following:
   a) performing acts that affect the normal operation of the Electronic Clearing System; and b) other serious circumstances justifying a participant's suspension from the Electronic Clearing System.
3. The Bank of Mozambique may also exclude a participant from the Electronic Clearing System whenever the following situations occur:
   a) non-compliance with norms established in the National Payments System Law, this Regulation, or the Procedures Manual; b) technical and financial incapacity to continue participating in the Electronic Clearing System; c) freezing or closure of the settlement account; and d) suspension or revocation of authorization.
4. A suspended or excluded participant is not entitled to reimbursement of any commission, fee, charge, or other expense incurred regarding their system participation.
5. The Bank of Mozambique notifies other participants of a participant's suspension, exclusion, and readmission to the Electronic Clearing System by the first working day following the decision.
6. A participant may apply for readmission to the Electronic Clearing System by providing proof that the cause determining suspension or exclusion has ceased.

CHAPTER III
Operation of the Electronic Clearing System
ARTICLE 14 (Processing in the Electronic Clearing System)

1. Clearing is electronic and multilateral.
2. Check clearing is based on truncation.
3. Clearing is conducted through daily processing by the Bank of Mozambique or another authorized institution, of electronic files of payment instruments submitted by participants, in at least two sessions.
4. The processing mentioned in the preceding paragraph includes:
   a) transmission of payment files, including images, submitted by participants; b) calculation of multilateral net results; c) transmission to the Interbank Transfer and Settlement System of multilateral net results calculated during clearing sessions; d) availability to the end beneficiary of funds from cleared payment instruments; and e) processing of returns.

ARTICLE 15 (Payment Instruments)
The following instruments are eligible for processing through the Electronic Clearing System:
a) checks; b) interbank electronic transfers; c) direct debits; and d) other instruments approved by the Bank of Mozambique.

ARTICLE 16 (File Transmission)

1. Clearing is conducted via transmission of electronic files regarding payment instruments to be cleared or already cleared between participants, in accordance with specifications established in the Procedures Manual.
2. Timetables for transmission and processing of electronic files, as well as clearing and settlement hours, are defined in the Procedures Manual.

ARTICLE 17 (Balance Clearing)
At the end of each session, the Electronic Clearing System calculates multilateral net results, which are subsequently transmitted for settlement.

ARTICLE 18 (Fund Availability Period)
Following settlement of results calculated during clearing sessions, the participant must make funds available to the end beneficiary within the following timeframes:
a) on day D, for the end beneficiary of interbank electronic transfers; b) by 13:30 on day D+1, for the end beneficiary of checks; and c) by 13:30 on day D+1, for the end beneficiary of direct debits.

ARTICLE 19 (Definitive, Irrevocable, and Unconditional Nature)
Payment instructions processed in the Electronic Clearing System are definitive, irrevocable, and unconditional after clearing results are calculated.

ARTICLE 20 (Return of Payment Instructions)

1. Payment instructions processed in the Electronic Clearing System are subject to return.
2. In case of return, the determining reasons must be communicated to participants.

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ARTICLE 21 (Operating Days)

1. The Electronic Clearing System operates on working days, except for holidays and national point-tolerance periods.
2. Without prejudice to the preceding paragraph, the Electronic Clearing System closes on point-tolerance days when they cover the entire day in the hosting financial center.

ARTICLE 22 (Language for Filling Payment Instruments and Documents)
All payment instruments processed in the Electronic Clearing System must be completed in Portuguese.

ARTICLE 23 (Charges/Fees)
Use of the Electronic Clearing System is subject to payment of charges defined in the Procedures Manual.

ARTICLE 24 (Contingency Mechanisms)
In case of communication network disruptions, or if for any other reason a participant is unable to order or receive payment instructions or other messages from the Electronic Clearing System, the contingency mechanisms established in the Procedures Manual must be used.

CHAPTER IV
Final Provisions
ARTICLE 25 (Procedures Manual)
The Bank of Mozambique approves, by Circular, the Procedures Manual for the Electronic Clearing System.

ARTICLE 26 (Sanctioning Regime)
Violation of the provisions of this Regulation constitutes an offense provided for and punishable under the National Payments System Law.

APPENDIX
Glossary
For the purposes of this Regulation, is understood as:
a) End Beneficiary – Client of a participating entity who receives funds via credit to their account; b) Settlement Account – Account held by each participant at the Bank of Mozambique, used to settle transactions between participants; c) Payment Instruction – Message from a participant requesting fund transfer; d) Participant – Institution authorized to access and use the Electronic Clearing System; e) Receiving Participant – Institution receiving a Payment Instruction; f) Direct Participation – Form of participation where the participant is directly connected to the Electronic Clearing System; g) Indirect Participation – Form of participation where the participant is connected to the Electronic Clearing System through a direct participant; h) Sending Participant – Institution sending or initiating a Payment Instruction.

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