Mozambique: Banks fined for breaching money laundering, financing of terrorism duties – Lusa report

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Mozambique: Banks fined for breaching money laundering, financing of terrorism duties – Lusa report

1:25 CAT | 30 Nov 2021

File photo: VOA

The Bank of Mozambique has fined seven credit institutions between February 2020 and June 2021, the regulator announced in a statement.

The list includes BCI, one of the country’s largest banks, controlled by Portuguese brands (Caixa and BPI), punished for failing to comply with requirements to prevent money laundering and terrorism financing.

Banco Comercial e de Investimentos (BCI) was fined 53 million meticais (around 720,000 euros) for breach of four duties, namely: the “duty to identify and verify customers, as well as that of the continuous monitoring of business relationships”; the “special control of transactions,”duty; “the duty to keep documents”; and the duty to “report suspicious transactions,” the central bank statement said.

The facts relate to the period from 2013 to 2018.

Six other credit institutions were also subject to sanctions.: the African Banking Corporation (BancABC), Standard Bank Moçambique, First Capital Bank, Socremo, Bayport Financial Services Moçambique and the Pemba Women’s Credit Union.

The first four above-mentioned financial institutions (BancABC), Standard Bank Moçambique, First Capital Bank and Socremo) were fined for violating articles of the law on preventing and combating money laundering and terrorism financing, while the last two entities [Bayport Financial Services Moçambique and the Pemba Women’s Credit Union.] disrespected the law on credit institutions and financial companies.

BancABC was sanctioned for seven infractions with a fine of 64.4 million meticais (890,000 euros), the only one higher than that applied to BCI.

According to the central bank, in the same period [ between February 2020 and June 2021] sanctions were also applied to four financial companies operating in the country (Mundo de Câmbios, Carteira Móvel, Casa de Câmbios de Xai-Xai and M-Mola) and nine illegal operators, in this case individual companies.

In these cases, they concern infringements of the laws of the respective sectors of activity.

Source: Lusa