You do not play with money here!

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.