Mozambican central bank appoints a new ‘resident inspector’ for Standard Bank Mozambique

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Mozambican central bank appoints a new ‘resident inspector’ for Standard Bank Mozambique

2:55 CAT | 16 Dec 2022

File photo: O País

The Bank of Mozambique has announced that, to satisfy the need to maintain continuous monitoring of Standard Bank’ Mozambique’s activities, safeguard the interests of customers and ensure the stability of the financial system, it has appointed Adelina José Chilaúle, a senior staff member of the Bank of Mozambique, to carry out the functions of ‘resident inspector’ at Standard Bank Mozambique, with effect from the 14th of December, 2022, replacing Zaituna Raul Chilaúle.

The new resident inspector is to continue to monitor actions aimed at improving information systems and technologies, risk culture and internal controls, and will participate in relevant meetings of collegiate bodies.

The Bank of Mozambique has also made known that Standard Bank shareholders and management continue to cooperate with a view to fully remedying the irregularities detected within the scope of the assessments carried out, and reiterates that all operations in the banking system are carried out within normal limits and without incident.

Last July, the Bank of Mozambique announced that Standard Bank would, for another 12 months, continue to be prevented from participating in the interbank foreign exchange market, a year after the regulator suspended the institution from this type of operation for “serious infractions”.

In a note distributed to the media last July, the Bank of Mozambique stated that “the decision stems from the fact that the central bank finds, throughout the monitoring carried out by that financial institution since July, 2021, evidence of serious irregularities that dictated its impediment, in force in the last 12 months, despite some improvements”.

Despite remaining suspended from the interbank foreign exchange market, Standard Bank is authorized to carry out currency conversion activities for its customers, but must use the reference exchange rate published by the Bank of Mozambique.

In a reaction note distributed to the media, Standard Bank highlights that the decision does not prevent the institution from continuing to service its customers, adding that it remains in contact with the regulator to resolve the problems that persist.

“Standard Bank continues to work with the Bank of Mozambique to resolve all outstanding issues from the 2021 audit, in order to be readmitted to the interbank foreign exchange market,” the commercial bank says.

Following the suspension of Standard Bank Mozambique from the Interbank Foreign Exchange Market, the bank was also obliged to pay a fine of 290 million meticais for “serious infractions” found during inspections, with emphasis on fraudulent manipulation of the exchange rate.

Data from the Mozambican central bank released in April indicated Standard Bank as the third in the list of banks of systemic importance in Mozambique, after Banco Comercial e de Investimentos (BCI) in second position and the International Bank of Mozambique (Millennium Bim) in the lead.

In the Domestic Systemically Important Banks (D-SIB ) ratio, Millennium Bim tops the list with 251 points, followed by BCI with 228 and Standard Bank with 139.

READ: Mozambique: “Resident inspector” appointed for Standard Bank – AIM report

Source: O País