Bank of Mozambique suspends Standard Bank

 Bank of Mozambique suspends Standard Bank

Bank of Mozambique suspends Standard Bank.

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Bank of Mozambique (BM) suspended Standard Bank Mozambique,S.A from participating on the foreign currency market in that country.

The move by Mozambique’s reserve bank was done after an on going site inspection.

“Following the findings made in the on going on-site inspection, Banco de Moçambique (Bank of Mozambique) has pre-emptively suspended Standard Bank Moçambique, S. A. from carrying out all activities relating to the conversion of foreign currency in the foreign exchange market,” Bank of Mozambique said in a statement.

“Banco de Moçambique hereby makes it known that, to safeguard the interests of the clients of Standard Bank Mozambique, S. A., business continuity is being ensured by the other banks operating in the country, under the guidance and clarification of Standard Bank Moçambique, S. A, in close collaboration with Banco de Moçambique.”

Mozambique’s central bank allayed market fear highlighting that foreign exchange operations were proceeding normally and the general financial system remains stable and solid.

Meanwhile BM and the French Government signed the Memorandum of Understanding for implementing the technical assistance program in the Component of Money Laundering and Combating the Financing of Terrorism.

The memorandum was signed, at the hall of the second floor of the BM headquarters building, by the Board Member responsible for Financial Stability, Jamal Omar, on behalf of the institution, and by the French Ambassador to Mozambique, David Izzo, on behalf of the French Government.

 Speaking on the occasion, the Governor of the BM, Rogério Zandamela, said that by the end of the technical assistance, the institution is expected to have a regulatory framework that falls in line with current challenges, as well as strategic guidelines for implementing an effective and comprehensive monitoring system.

French Ambassador to Mozambique, David Izzo, praised BM’s efforts to combat financial crime and terrorism, and said that this collaboration would bring new elements to the central bank and favour the strengthening of its surveillance systems and control resources and, as well as, the development of technical skills in the fight against money laundering and terrorist financing.

Expertise France, technical partner of the AFD, shall implement the program, whose preparations began in July 2020, under the financing of the French Cooperation, through the French Development Agency (AFD), for an amount of EUR 500, 000.

Members of the Board of Directors and managers of the BM, the Director General of the Mozambique Financial Information Office and representatives of the French Development Agency attended the event.

Fidelity Hamilton Mhlanga

Fidelity Hamilton Mhlanga has been writing finance and business news over the past 5 years. He earned a BSC in Media and Society Studies and Masters of Development Studies from Midlands State University, in Zimbabwe. He follows mining, insurance, banking and energy stories. He is passionate about development and growth.

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