BY DIRAMAKINI
THE Bank of Mozambique (Banco de Moçambique) has issued a public notice clarifying the legal conditions under which commercial banks and other credit institutions are allowed to block bank accounts and restrict account balances.
Picha from Internet.
In a statement released on September 29, the Central Bank said the measures are provided for under Law No. 27/2022 of 29 December, which establishes the Legal Framework for Bank Accounts, and Law No. 3/2024 of 22 March on Anti-Money Laundering and Counter-Terrorism Financing.
According to the Central Bank, banks may block accounts or restrict balances as a preventive measure when there are suspicions of bank fraud, money laundering, terrorist financing or proliferation financing.
"Credit institutions may block bank accounts and place restrictions on account balances as a preventive measure where there are suspicions of bank fraud, money laundering, terrorist financing or proliferation financing," the statement reads.
Beyond financial crimes, the Bank listed seven other circumstances under which accounts can be blocked:
1. A court order
2. An order from the Public Prosecutor's Office as a precautionary measure in criminal proceedings
3. A determination by the Banco de Moçambique itself
4. A request from the customer
5. The death of the customer
6. The dissolution of a legal person (company)
7. A legal requirement or authorisation
The Central Bank also clarified the procedure for suspicious transactions. It said in cases of suspected money laundering, terrorist financing or proliferation financing, banks are required by law to report the suspicions to the Mozambique Financial Information Office (GIFiM) and the Public Prosecutor's Office, which is responsible for ordering the suspension of the suspicious transaction.
The notice comes amid growing public concern on social media over sudden account blocks by commercial banks in Mozambique.
The Banco de Moçambique has urged customers who need further clarification to contact its Banking Conduct Supervision Department.
