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The Bank of Mozambique, between February 2020 and June 2021, imposed sanctions against eleven commercial banks and other financial bodies over violations of the law on preventing money laundering and the financing of terrorism and other regulations governing credit institutions.
In addition, nine individuals were fined for illegal financial transactions.
According to a statement released by the Central Bank on Monday, the largest fine, of 64.4 million meticais (just over one million US dollars), was imposed on the African Banking Corporation (BancABC, which is headquartered in Botswana) for violations between 2016 and 2017.
In particular, it failed to check the identity of clients, conserve documents, immediately notify the Bank of Mozambique of suspicious transactions, prepare an annual report on the effectiveness of its internal control and risk assessment systems, and monitor transactions and politically exposed persons. In addition, the bank failed in its duty to carry out internal auditing on money laundering and the financing of terrorism.
In addition, the country’s second largest bank, the BCI (Commercial and Investment Bank) was fined 52 million meticais for its failure between 2013 and 2018 to check the identity of clients or exercise continual vigilance over business relations, preserve documents, and report suspicious transactions. Three other banks, Standard Bank Mozambique, First Capital Bank, and Socremo were also fined for failing to report suspicious transactions.
Nine individuals were fined for various illegal financial operations. The central bank named them as: Julicardo Herminio Antonio; Milton Fidelis Elias; Anabela Joaquim; Domingos Arcanjo; Sara Simone Malobole; Orpa Nelsa Estevao Manjate; Arcelio Carlos Tivane; Elvis Lourino Chadreque; and Paulo Carlos Tivane.
The Bank of Mozambique statement only covers the period up to June this year. However, in July, it fined the country’s oldest bank, Standard Bank Mozambique, 290 million meticais for engaging in fraudulent practices. In addition, it fined two of Standard’s most senior officials, chief executive Chukwuma Nwokocha and the director of corporate and investment banking, Domingos Madeira and banned them from holding office in any bank or other financial institution for six years.