Notice No. 9/GGBM/2005 of 22 August – Interbank Clearing and Settlement Regulation

Monday, 29 August 2005 I SERIES — Number 34
REPUBLIC GAZETTE
OFFICIAL PUBLICATION OF THE REPUBLIC OF MOZAMBIQUE NATIONAL PRESS OF MOZAMBIQUE NOTICE The matter to be published in the "Boletim da República" must be submitted in duly authenticated copy, one for each subject, which must contain, in addition to the necessary indications for this purpose, the following endorsement, signed and authenticated: For publication in the "Boletim da República" SUMMARY Ministry of the Interior:
Ministerial Diploma No. 168/2005:
Grants Mozambican nationality, by naturalization, to José Ernesto Chacon Provoste.
Ministerial Diploma No. 169/2005:
Grants Mozambican nationality, by naturalization, to Turecek Guerardo.
Ministerial Diploma No. 170/2005:
Grants Mozambican nationality, by naturalization, to Carlos Manuel Marcelino Barreiros Proença.
National Council for the Public Service:
Resolution No. 4/2005:
Approves, on an exceptional basis, the criteria for the reclassification of Public Ministry officials integrated into general regime careers who perform functions of judicial officers. Bank of Mozambique:
Notice No. 9/GGBM/2005:
Approves the Interbank Clearing and Settlement Regulation

MINISTRY OF THE INTERIOR
Ministerial Diploma No. 168/2005 of 24 August

The Minister of the Interior, having verified that compliance has been given to the provisions of Article 14 of Decree No. 3/75, of 16 August, and in the exercise of the faculty granted to him by Article 12 of the Nationality Law, determines:

Mozambican nationality is granted, by naturalization, to José Ernesto Chacon Provoste, born on 6 June 1955, in San António - Chile.

Ministry of the Interior, in Maputo, 2 August 2005 — The Minister of the Interior, José Condugua António Pacheco.

Ministerial Diploma No. 169/2005 of 24 August

The Minister of the Interior, having verified that compliance has been given to the provisions of Article 14 of Decree No. 3/75, of 16 August, and in the exercise of the faculty granted to him by Article 12 of the Nationality Law, determines:

Mozambican nationality is granted, by naturalization, to Turecek Guerardo, born on 24 September 1946, in Italy.

Ministry of the Interior, in Maputo, 2 August 2005.
— The Minister of the Interior, José Condugua António Pacheco.

Ministerial Diploma No. 170/2005 of 24 August

The Minister of the Interior, having verified that compliance has been given to the provisions of Article 14 of Decree No. 3/75, of 16 August, and in the exercise of the faculty granted to him by Article 12 of the Nationality Law, determines:

Mozambican nationality is granted, by naturalization, to Carlos Manuel Marcelino Barreiros Proença, born on 18 July 1957, in Castelo Branco - Portugal.

Ministry of the Interior, in Maputo, 2 August 2005.
— The Minister of the Interior, José Condugua António Pacheco.

NATIONAL COUNCIL FOR THE PUBLIC SERVICE
Resolution No. 4/2005 of 24 August

By Ministerial Diploma No. 55/2005, of 16 February, the personnel structure of the Attorney-General's Office and the standard structures of the Provincial and City of Maputo Attorney's Offices were approved.

It being verified that the personnel performing functions of judicial officers in the registries of the Public Ministry were improperly classified into general regime careers and it being necessary to correct this situation, under the proposal of the Attorney-General's Office and hearing the Central Director Body of the National Human Resources Management System, under the provisions of paragraph 4 of Article 29 of Decree No. 64/98, of 3 December, the National Council for the Public Service determines:

Article 1. The criteria for the reclassification of Public Ministry officials integrated into general regime careers and who perform functions of judicial officers, as contained in the attached map, are approved on an exceptional basis.

Art. 2. The reclassification of officials will follow the procedures defined in Resolution No. 11/98, of 3 December, of the National Council for the Public Service, with the necessary adaptations.

Art. 3. The remuneration for the functions of Chief Provincial Section Prosecutor and Chief District Section Prosecutor are calculated on the basis of the percentages of 120% and 70%, respectively, contained in Annex I to Decree No. 59/2003, of 24 December.

Art. 4. The reclassification dispatches will be produced by 30 September 2005.

Art. 5. This Resolution enters into force on the day of its publication.

Approved by the National Council for the Public Service, on 10 August 2005.
The President, Lucas Chomera Jeremias. (Minister of State Administration)

Criteria for classification in the Judicial Officers career

Current Category	Current Career	Category to be classified into	Time of service in current category	Academic qualifications	Tier to be classified into
Provincial Law Clerk	Judicial Secretary	Provincial Law Clerk	With more than 10 years of service	12th class	Tier 1
Professional Technician of Public Administration	Provincial Law Clerk	Provincial Law Clerk	With more than 10 years of service	7th class	Tier 1
Technical Clerk	Provincial Law Clerk	Provincial Law Clerk	With more than 10 years of service	12th class	Tier 1
Technical Assistant	Provincial Law Clerk	Provincial Law Clerk	With more than 5 years of service	Bachelor in Law	Tier 1
Technical Assistant or General Regime Career	Assistant Clerk or District Law Clerk	District Law Clerk	With more than 5 years of service	12th class	Tier 1
General Regime Career	Provincial Judicial Clerk	Provincial Judicial Clerk	With more than 5 years of service	10th class	Tier 1
General Regime Career	District Judicial Clerk	District Judicial Clerk	With more than 5 years of service	7th class	Tier 1

BANK OF MOZAMBIQUE
Notice No. 9/GGBM/2005 of 24 August

The Board of Directors of the Bank of Mozambique, in the exercise of the competence conferred upon it by Article 43 of Law No. 1/92, of 3 January — Organic Law of the Bank, approves:

1. The Regulation of interbank clearing and settlement, which constitutes an annex to this Notice and forms an integral part thereof.
2. This Notice enters into force on the date of its publication and revokes Notices No. 4/GVGBM/2001, of 1 June, and No. 10/GGBM/2001, of 23 November, and any other provisions to the contrary.
3. 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.

Maputo, 22 August 2005. — The Governor, Adriano Afonso Maleiane.

Interbank Clearing and Settlement Regulation

CHAPTER I
General Provisions

ARTICLE 1
(Object)

1. This Regulation aims to establish the operating rules of the Interbank Clearing Service for checks and other negotiable instruments denominated in national currency; the financial settlement of operations processed through electronic payment networks and the Mozambique Stock Exchange.
2. The clearing referred to in this Regulation is purely electronic.
3. The provision in the preceding number obliges that clearing be carried out exclusively using information and communication technologies.

ARTICLE 2
(Participants)
The following entities participate in Interbank Clearing:
a) The Bank of Mozambique; b) Credit institutions authorized to receive repayable deposits and movable by means of check or similar document; c) Other entities that the Bank of Mozambique may determine.

ARTICLE 3
(Definitions)
For the purposes of this Regulation, the related expressions and terms are defined as follows:
a) Banks: Credit institutions, authorized to receive repayable deposits and movable by means of check or similar document; b) Multilateral clearing: Procedure intended for the determination of the sum of the bilateral debtor and creditor results of each participating bank in relation to the others. c) Insolvent institution: Bank participating in interbank clearing that is not in a position to settle its financial obligations with the other participants. d) Surviving institution: Bank that participates in the sharing of losses in case of a participant's inability to settle its obligations, determined in clearing sessions.

ARTICLE 4
(General clearing procedures)

1. The clearing referred to in this Regulation is of a multilateral nature.
2. Clearing is carried out through daily processing by the Bank of Mozambique of the exchange and return files sent by banks, and a single daily session for the delivery of physically compensated documents electronically.

ARTICLE 5
(Mode of participation)

1. Participation in clearing may be carried out directly or indirectly. Banks that do not participate directly in any of the sub-systems of interbank clearing may do so through representation by a direct participant, who assumes before the other members the rights and obligations of the institutions represented by him.
2. The Bank of Mozambique may, with a view to ensuring the proper functioning of the national payment system and the minimization of systemic risk, decide the transition of a participant from the direct participation regime to indirect.

CHAPTER II
Payment Issues Support Group

ARTICLE 6
(Composition and coordination)
The Payment Issues Support Group (GAPAP) is composed of one representative from each institution referred to in Article 2 of this Regulation and is chaired by the Bank of Mozambique.

ARTICLE 7
(Powers)

1. It is the responsibility, in particular, of the Bank of Mozambique:
   a) To convene GAPAP meetings; b) To produce the minutes of the meetings; c) To consider proposals for the integration of other participating members; d) To decide on the proposals presented by GAPAP.
2. It is the responsibility of GAPAP, in general:
   a) To pronounce, on its own initiative or when requested, on matters related to the Payment System; b) To submit to the Bank of Mozambique, studies, suggestions or recommendations that contribute to the continuous improvement of the National Payment System; c) To constitute subgroups of its members, with permanent or provisional character, to collaborate in the study and consideration of specific matters; d) To draft its Internal Regulation.

CHAPTER III
(Clearing)

ARTICLE 8
(Participation requirements)

1. For the purposes of this Regulation, the following are considered participation requirements:
   a) Submission of an application for membership to be approved by the Bank of Mozambique; b) To constitute guarantees, in titles eligible for monetary policy purposes, as defined in specific regulation; c) To be within the limits and prudential ratios defined by the Bank of Mozambique; d) To possess a technological infrastructure for data recovery in case of main system failures; e) To satisfy all technical and procedural requirements required for the realization of clearing, defined in the respective system manuals and operations.
2. Participation in interbank clearing may be conditioned upon the realization, by the Bank of Mozambique, of tests, as defined in the preceding letter.

ARTICLE 9
(Constitution of guarantees)

1. The provision of guarantees must be in an amount to be determined on a case-by-case basis, corresponding to the largest net debtor balance of the clearing result (1st and 2nd sessions) of the last month, multiplied by a weighting factor, as determined based on the assessment of liquidity and credit risks, carried out by the Bank of Mozambique.
2. Newly admitted institutions will participate in an active indirect manner, by representation through a direct participant, sending and receiving clearing information, however, the clearing result will be posted to the account of its representative, for a period of no less than one month.
3. The amount of titles to be constituted will be rounded up to the next multiple of 1 billion Meticais.
4. The constitution of guarantees will be made by debit in the bank's title account and the corresponding credit in the title account of the Bank of Mozambique.
5. Interest retained resulting from guarantees under the terms of this article reverts to the depositing bank at maturity.
6. The Bank of Mozambique will re-evaluate the value of guaranteed titles according to the evolution of liquidity and credit risk.
7. The updating of titles taken as collateral will be done automatically by the Bank of Mozambique, which will prioritize those whose maturities are furthest from the date of update, and the same criterion will be adopted in case of replacement of guaranteed titles that are reaching maturity.
8. In case of lack, insufficiency or non-renewal of the titles referred to in this article, the defaulting participant shall be suspended from clearing, until the situation is regularized.

ARTICLE 10
(Procedures for illiquid bank with sufficient titles to cover the deficit)

1. Each bank participating in the Clearing House is obliged to fund the Current Deposit (DO) account it maintains at the Bank of Mozambique to guarantee the settlement of the clearing result.
2. In case of insufficient funds in the account, for the purposes of the preceding number, the Bank of Mozambique will use the volume of titles ceded as collateral, sufficient to cover the value of the determined deficit.
3. The value to be credited to the bank's account (transaction value) will be calculated based on the formula applied in Permanent Lending Facility (PLF) operations.
4. If the institution comes to have sufficient funds to repurchase the titles used as collateral by the Bank of Mozambique, until the closing time of the Interbank Money Market (IMM), its Current Deposit account will be automatically debited and the titles used as collateral restored, with no payment of interest due.
5. In the absence of sufficient funds for the institution to proceed with the repurchase of the titles used as collateral by the Bank of Mozambique, until the period established in the preceding number, the value credited to the bank's account, under the terms of paragraph 3 of this article, will be treated as PLF.
6. If by the closing of the IMM on the next business day referred to in paragraph 5 of this article, the institution does not have funds to reverse the operation described in the preceding number, the titles used as collateral revert to the Bank of Mozambique, with the participation of the institution in question in the clearing house being automatically suspended, until the complete regularization of the situation, without prejudice to other prudential measures that may be applicable.

ARTICLE 11
(Procedures for illiquid bank without sufficient titles to cover the deficit)

1. In case of persistence of the deficit after the use of titles in collateral by the Bank of Mozambique, according to paragraph 2 of the previous article, the bank must resort to all means at its disposal to fund its account until 12:00 hours of the same day.
2. If by the hour indicated in the preceding number the bank's liquidity is insufficient to cover the missing value, the Bank of Mozambique will determine the value of the deficit and initiate the following procedures:
   a) The amount of the deficit will be rounded up to the next multiple of 1 billion Meticais; b) It will distribute the determined value under the preceding letter among the other clearing participants in proportion to the titles delivered as collateral, excluding the Bank of Mozambique; c) It will use the guarantees mentioned in the preceding number, proceeding to credit the accounts of the respective banks with the equivalent transaction value to be obtained based on the PLF formula. Subsequently, the Bank of Mozambique will debit this value from the accounts of the surviving banks in counterpart to the credit to the insolvent bank's account; d) It will calculate the difference between the aforementioned deficit value and the value credited to the insolvent institution, under the preceding letter, and repeat the procedures described in letters a), b) and c) of this article, until the total coverage of the determined fund insufficiency. e) The surviving banks must restore the titles taken under letter b) above, in order to maintain the amount of titles in collateral determined based on paragraph 1 of Article 9.
3. As soon as the insolvent institution has sufficient funds, the following will be done:
   a) The Bank of Mozambique will debit the account of the insolvent institution in counterpart to the credit to the accounts of the other clearing participants; b) The value of the debit will be calculated as if it were a PLF maturity operation, with its rate increased by two percentage points; c) The determined value, under the preceding letter, will be debited from the accounts of the other clearing participants in counterpart to the credit to the Bank of Mozambique's account. d) The insolvent bank must have sufficient funds to cover the guarantees granted by the other clearing participants in a maximum period of 1 business day counted from the date of the occurrence of the situation described in paragraph 2 of this article. e) Non-compliance with the established in the preceding number will determine the immediate suspension of the defaulting participant from interbank clearing until the complete regularization of the situation; f) The Bank of Mozambique will communicate to the system and the public the decision taken in the preceding letter.

ARTICLE 12
(Definitive and irrevocable nature)
The interbank clearing operations are considered, unconditional, definitive and irrevocable, from the moment that financial settlement is effected in the Current Deposit accounts of the participants at the Bank of Mozambique.

CHAPTER V
Clearing of checks and other negotiable instruments
SECTION I
General Provisions

ARTICLE 13
(Coordination)

1. It is the responsibility of the Bank of Mozambique to coordinate the physical delivery of compensated documents.
2. In places where there is more than one bank, and the Bank of Mozambique is not represented, the physical delivery of compensated documents will be made in a location of consensus of the participants, and with the approval of the Bank of Mozambique.

ARTICLE 14
(Scope of clearing)

1. Clearing is based on a single settlement at the national level, with several Presentation and Exchange Places for physical documents, which have specific coding.
2. The physical delivery of compensated and electronically returned documents is carried out in the exchange places, when the drawee institution is represented there. In other cases, the delivery is carried out in the nearest place.
3. Clearing takes place every day, except Saturdays, Sundays and Holidays.

ARTICLE 15
(Premiums and commissions)

1. The premiums and commissions to be charged for the use of the clearing system are contained in the respective table in force at the Bank of Mozambique;
2. The Bank of Mozambique will debit the accounts of the participants for the values determined in the preceding number of this article.

SECTION II
Formalities for clearing

ARTICLE 16
(Clearable documents)

1. The following documents are processed in clearing:
   a) Checks; b) Payment Orders; c) Transfer Orders; d) Interbank Electronic Transfers; e) Direct Debits; f) Difference Adjustment Document. g) Other payment instruments that the banking system may adopt.
2. Checks or similar documents that have previously been the object of two returns by the drawee bank, for lack or insufficiency of provision, cannot be presented for clearing.

ARTICLE 17
(Requirements of documents)
The clearable documents, subject to physical exchange, must contain in the electronic, mechanical or manual clearing stamp, as per Annex I-A, the date of exchange, the name of the sender and the mention "Settlement by means of the Interbank Clearing Service for Checks and Other Titles".

ARTICLE 18
(Stamps)

1. In clearing, only means of Certification and models whose standards have been defined and approved by the Bank of Mozambique will be used.
2. The position of the clearing stamp on any document subject to clearing is equivalent, for all legal purposes, to the signature of the sending participant.
3. In checks, it must also be observed that the position of the clearing stamp also makes the sending participant responsible before the drawee institution, for the irregularity of the series of endorsements.

ARTICLE 19
(Flow of information and documents)

1. The physical delivery of electronically compensated documents must be carried out with the limited participation of personnel strictly indispensable to its realization.
2. Electronic Clearing is carried out from the transmission of information relating to the documents to be cleared, to the Bank of Mozambique, according to the norms established for this purpose.
3. The documents included in the transmitted files, whose physical delivery is mandatory, must be sent to the recipient banks in the form consensually established between them, provided it allows for manual processing and return of documents, when applicable.
4. The schedules for the transmission and processing of electronic files and the clearing cycle will be defined by the Bank of Mozambique.
5. Until the clearing cycle is completed, the recipient participant is the faithful depositary of the documents sent to him by the sending participant.

ARTICLE 20
(Quality of information and documents)

1. The issuing bank of documents is responsible for errors resulting from the poor quality of the material used in their production or non-observance of the specifications and instructions contained in the electronic clearing requirements booklet.
2. The sending bank is responsible for the exact reproduction of the data contained in the documents to be cleared, as well as for the consequences that may arise from possible errors in this reproduction.
3. The recipient bank is equally responsible for verifying the conformity of the information sent to it and, in case of non-conformity with the documents that must be presented, must proceed to their return, invoking the reasons provided for in this Regulation.
4. The recipient bank, when prejudiced, may promote the adjustment with the sending bank, through remuneration negotiable between the parties, provided the damage is proven.
5. Whenever duplication of clearing files is verified, the presenting participant must restore the amount in question on the same day, through the use of the (State Electronic Funds Transfer System) STF.
6. In case of concurrence of errors, between the sending and recipient banks, each of the interveners will assume half of the determined damage value.
7. The drawee institution is responsible for the correct information of the reason for return and reproduction of the other information of the original record.
8. The Bank of Mozambique is responsible for the faithful reproduction of the data and its transmission, relating to the movement destined to each participant...