Two days after the Banco de Moçambique (BM)
disclosed the measure sanctioning 15 banking institutions operating in the
national banking market for allegedly committing crimes that constitute money laundering,
the governor of the Central Bank, Rogério Zandamela, came to the public to be
intolerant in law enforcement. Zandamela's announcement was made on Wednesday
afternoon during a press conference called to announce the decisions of the BM
Monetary Policy Committee. However, given that there are several appeals on
fines, commercial banks are considering reacting this week via the Mozambican
Association of Banks (AMB), considering as defamation the accusations made by
the supervisory institution.
In what was seen as another central bank action in the Zandamela era to
discipline banking operations in the country, the World Bank has sanctioned 15
financial institutions with a global fine of 158 million meticais. Previously,
in 2016, Zandamela ordered the intervention on the Moza bank and extinguished
Our Bank, two credit institutions with liquidity problems, the first and clear
insolvency, the second. According to the regulator, the question is the
violation of several provisions under the Law on Prevention and Combating Money
Laundering and Terrorist Financing. According to the World Bank, were committed
between 2015 and 2016, but the sanctions were made last year, and fines have
already been paid by the targeted institutions. The central bank did not
specify the type of infractions that were committed, having packaged everything
in the absence of compliance with Law 15/99 of 1 November (as amended by Law
9/2004 of 21 July), which regulates the credit institutions and financial
corporations. Zandamela's justification for not going into details about this
issue is that it did not fit into the agenda of the Monetary Policy Committee,
whose decisions were made public on Wednesday afternoon at a press conference
convened for this purpose. However, the sanctioning decision has led to a great
deal of discomfort within the sector, which raises the question whether
Zandamela has decided to publish the names of the banks concerned before
clarifying the appeal by them. The banks concerned also argue that the list of
fines imposed is not complete.However, the governor of the central bank bases the sanctions with the need to
discipline banking and financial operations in the country, and called for the
banking collaboration. He pointed out that it was not "a confrontational
attitude" because the bank would have been stricter in relation to the
molds in which it acted. "We want to signal a concern and we want our bank
to improve its behavior. They are credit institutions that are managing our
citizens' savings and we want to ensure that they work with the best standards
of transparency, within national and international laws and practices,
"Zandamela said. He continued in a tone of authority: "Let's be
intolerant in this area. Do not play with money from third parties, do not mess
with money laundering issues and so we will continue to be very inflexible with
the rules. We are aligning things to make our square a square of rigor and
seriousness in this matter and we are working with the bank so that this is a
reality and that is what the bank wants. They will be the first beneficiaries
of this, but we have to work within the rules, "he said. On the existence
of institutions that have appealed the decision to the court and thereby
criticized the BM for the spreading of sanctions, Zandamela said he did not
have this information. But he considers that such an attitude would be a real
confrontation with the regulator, having warned that although he was not
threatening anyone, he would face a great challenge. This is because, he added,
the regulator has too much powers over financial institutions. "The way to
go to court is open, maybe they do or do not, I know nothing. But confirm that
the fines have been paid and there is a spirit of banking collaboration. I have
information that the bank wants to improve its practices and we appreciate it,
"he said. At least two banks that appealed the ruling said they did not
pay the fines but deposited the amount into a secured account, according to
instructions received from the central bank itself. The newspaper learned that
Moza Banco and UBA paid the fines.
According to Law no. 14/2013 of August 12, a
person who converts, transfers, helps or facilitates any operation of
conversion, transfer of criminal proceeds, with the purpose of concealing or
concealing their illicit origin, commits a crime of money laundering or to
assist the person involved in the commission of criminal activities. The law
also applies to anyone who conceals or conceals the true nature, origin,
location, disposition, movement or ownership of proceeds of crime or rights
thereto. But also to whoever owns any title or use goods knowing of its illicit
provenance at the time of receipt. It has been found that there are several
cash deposits of over 250,000 meticais made by at least three individuals of
Saudi, Egyptian and Pakistani nationality on behalf of a cement company based
in the province of Maputo. Other reasons for the fines are foreign operations
without proper evidences and operations of buying and selling of foreign currency.
Commercial banking managers questioned by the newspaper consider
"preciosity" and "excessive zeal" the amounts set for the
obligation to report these operations to the central bank. However, the head of
one of the banks who declined to be identified for interview purposes said it
was "understandable that the central bank would try to apply the
regulations vigorously because there is too much laxity in the banking system
and a worrying situation with foreign operations and increase in bad credit standing.
"
"The bank is not well at the current
juncture, if the central bank does not take sides, it can go deep," said
the same leader, noting that there are at least three banks that have large
debts of the "toxic companies" of the insurance sector (Ematum,
Proindicus and MAM) and also carry the "burden" of the debts of
public companies. Of the 15 financial institutions fined by the Bank of
Mozambique, Banco Único was the one that took the heaviest penalty with a fine
equivalent to 32.8 million meticais. Of the main market players pontificate BCI
with a fine of 24.2 million meticais; the Millenium BIM, Moza Banco and
Barclays were applied 24 million meticais. Banco Mais and UBA were fined 12
million each, while Capital Bank had a fine of 3.2 million meticais. Banco Oportunidade
was awarded a sanction of 800 thousand meticais; to Ecobank a fine of 700
thousand meticais. Banc ABC was sanctioned at 400 thousand meticais and the
Letsego bank fined 150 thousand meticais. Cooperative of Savings and Credit of
Producers of Limpopo, Vodacom-Mpesa and Mobile Portfolio received a fine of
100,000 meticais each.
