The Regulation of the Law on Credit Institutions and Financial Companies has been published in Mozambique and is in force since July 26, according to the official legal database Legis-PALOP+TL.

As of July 26, 2024, credit institutions and financial companies must comply with the following:

• When applying for the incorporation of a credit institution or financial company, make an unavailable deposit at Banco de Moçambique corresponding to 5% of the share capital or provide a bank guarantee; and

• Pay licensing fees of up to around MZN 1.9 million (around USD 30.000) and annual fees of up to around MZN 950.000 (around USD.15 000) – amounts set per number of Minimum Wages in Annex II of Decree 50/2024, varying according to the type of institution (e.g. Banks, Finance Leasing Companies, Investment Companies, Venture Capital Companies, Exchange Houses, among others).

Under penalty of fines of up to MZN 90 million (around USD 1.5 million), companies must also:

• Request specific and prior authorization from the Banco de Moçambique to carry out the activity of cash recirculation;

• Request authorization from Banco de Moçambique in the case of changes to the articles of association and to open, relocate and close branches;

• Register in a special registry at the Banco de Moçambique upon application to the Governor of the Banco de Moçambique, accompanied by all the elements that substantiate the facts to be registered, an obligation that also applies to credit institutions and financial companies authorized in a foreign country and which have a branch or representative office in Mozambique.

According to the platform, credit institutions, namely banks, microbanks and credit unions, and financial companies, namely payment service providers, brokerage and financial brokerage companies, investment fund management companies, asset management companies, venture capital companies, Group purchasing management companies, bank card management or issuing companies, financial leasing companies, factoring companies, investment companies, mutual guarantee companies, bureaux de change and discount houses, must also comply in particular with the obligations arising from Chapters III and IV of the Regulation of the Law on Credit Institutions and Financial Companies.

In addition, as of July 26, 2024, microfinance operators such as microbanks and credit cooperatives require authorization and registration with the Banco de Moçambique; savings and loan organizations and microcredit operators require only registration, and all these operators must pay licensing fees and annual fees of up to around 18.000 MZN (around USD 280).