Mozambique: Central bank returns the equivalent of 12 million euros after record 1,120 complaints in 2023

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Mozambique: Central bank returns the equivalent of 12 million euros after record 1,120 complaints in 2023

2:20 CAT | 18 Nov 2024

File photo: Lusa

62.6% of the refunds were related to undue charges to POS contracting economic agents

Complaints filed by banking system customers grew 38.5% in 2023, to 1,120, according to the Bank of Mozambique, which returned 808 million meticais (€12 million) to consumers.

In its 2023 annual report, the central bank states that “several irregularities were detected” from the complaints received and inspections carried out, especially “in the charging of commissions and charges for financial products and services”.

In addition to issuing “specific determinations and recommendations to ensure compliance with standards and duties of conduct” by credit institutions and financial companies (ICSF), the central bank explains that “approximately 808 million meticais was also recovered and returned to financial consumers”.

Of this total, 62.6%, the equivalent to 506 million meticais (€7.5 million), “resulted from undue charges to POS contracting economic agents”, and 33%, worth 264 million meticais (€3.9 million), “from undue charges of commissions and charges in the contracting and administration of bank credit”.

“In addition, several violations were found related to the implementation of standards and failure to meet deadlines by the ICSF. As a result of these violations, the Bank of Mozambique initiated 13 misdemeanour proceedings, four of which were concluded, with the application of the respective fines,” the institution explains.

The Bank of Mozambique highlights fines imposed on Letshego and Millennium BIM – led by the Portuguese bank BCP – of 21.4 million meticais (€317.6 thousand) and 17.2 million meticais (€255.2 thousand) respectively.

“It should be noted that the remaining misdemeanour proceedings are still ongoing,” the report released this month states.

Over the course of 2023, the Bank of Mozambique received 1,120 complaints from customers of financial and credit institutions, the highest number ever, compared to 809 in 2022 and 704 in 2021.

“This growth may be associated with the fact that there is greater financial awareness among consumers of financial products and services regarding their rights and obligations, largely resulting from the financial education campaigns that the Bank of Mozambique has been carrying out,” the report concludes.

At the end of 2023, Mozambique had a total of 15 banks, 14 micro-banks, four credit unions, 13 savings and loan organizations, and 2,304 micro-credit operators.

Source: Lusa