WIKIFX REPORT: Mozambican Central Bank Extends Standard Bank’s Suspension from the Interbank Foreign

　　The Bank of Mozambique announced today that Standard Bank will continue, for another 12 months, barred from participating in the interbank foreign exchange market, one year after the regulator suspended the institution in this type of operations for “serious violations”.

　　“The decision stems from the fact that the central bank found, during its monitoring of that financial institution since July 2021, evidence of serious irregularities that dictated its ban, in force for the last 12 months, despite some improvements,” the Mozambican central bank said in a statement distributed to the media today.

　　Despite remaining suspended from the interbank foreign exchange market, the regulator clarifies that the commercial bank is authorised to carry out currency conversion activities with its public, and must use the reference exchange rate published by the Bank of Mozambique.

　　In a reaction note distributed to the media, Standard Bank reiterates that the decision does not prevent the institution from continuing to work with its clients, adding that it remains in contact with the regulator to solve the problems that persist.

　　“Standard Bank continues to work with the Bank of Mozambique to resolve all outstanding issues from the 2021 audit in order to be readmitted to the interbank foreign exchange market,” the commercial bank indicates.

　　The suspension of Standard Bank from the Interbank Foreign Exchange Market was announced on June 23 last year and the next day the Mozambican central bank announced the opening of three “contravention proceedings” against that bank and two of its employees.

　　The commercial bank was also forced to pay a fine of 290 million meticais (four million euros), after “serious offenses” were found during inspections, with emphasis on fraudulent manipulation of the exchange rate.

　　Data from the Mozambican central bank released in April showed Standard Bank as third on the list of the three banks of systemic importance in Mozambique, in a list led by Banco Internacional de Moçambique (Millennium Bim) and in which Banco Comercial e de Investimentos (BCI) is in second place.

　　In the ratio that measures the importance to the sector, labeled with the English acronym D-SIB, Millennium Bim tops the list with 251 points, followed by BCI with 228 and Standard Bank with 139.