FOREIGN EXCHANGE NORMS AND PROCEDURES MAJOR CHANGES AND IMPACT ON - PowerPoint PPT Presentation

GLOBAL MARKERTS & TREASURY DEPARTMENT FOREIGN EXCHANGE NORMS AND PROCEDURES MAJOR CHANGES AND IMPACT ON YOUR BUSINESS MAPUTO, 31 st May 2018

CONTENTS  CHAPTER 01 _ SOCIÉTÉ GÉNÉRALE GROUP • THE GROUP AT A GLANCE • A LONG STANDING COMMITMENT TO AFRICA • CONNECTING MOZAMBIQUE TO THE MAJOR ECONOMIES • SOCIÉTÉ GÉNÉRALE IN MOZAMBIQUE  CHAPTER 02 _ FOREIGN EXCHANGE LAW BACKGROUND & PRINCIPLES • CENTRAL BANK’S NOTICE 20/GBM/2017, FROM 11 TH DECEMBER 2017 • CENTRAL BANK’S NOTICE 04/GBM/2018, FROM 22 ND MARCH 2018 •  CHAPTER 03 _ FREQUENTLY ASKED QUESTIONS C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.2

CHAPTER _ 01 SOCIÉTÉ GÉNÉRALE’S GROUP C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.3

THE GROUP AT A GLANCE A STRONG UNIVERSAL BANK, SERVING OUR CUSTOMERS AND THE ECONOMY, BUILT ON 3 COMPLEMENTARY CORE BUSINESSES  French Retail Banking  International Retail Banking & Financial Services  Global Banking and Investor Solutions SOCIÉTÉ GÉNÉRALE’S OUR VALUES AMBITION To be THE relationship-focused  Team spirit bank, a reference in its markets,  Innovation close to its clients and chosen  Responsibility for the quality and commitment  Commitment of its teams. 31 million * 65 countries individual clients, worldwide 145,000 ** businesses and institutional investors members of staff 11.4% Common Equity Tier 1 ratio € 5 billion Financial rating € 25.1 billion Group Net Income A Standard & Poor’s in Net Banking Income A2 Moody’s A Fitch * Excluding insurance policyholders. AA (low) DBRS ** Rounded figure. Headcount at end-2017 excluding temporary staff C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.4

A LONG STANDING COMMITMENT TO AFRICA Deeply rooted presence In the Top 3 of the on the continent major banking groups on the continent 100 years in Morocco, 50 years in Cameroon, Senegal and Ivory Coast, Presence in 30 years in Guinea 17 Algeria Madagascar • • countries Burkina Faso Mauritania • • Cameroon Mozambique • • 3,3 million Chad Senegal • • Congo Togo • • customers Equatorial Morocco • • Guinea Tunisia 950 11,500 • Ghana • South Africa • branches employees Guinea • Ivory Coast • Leading Positions: SGBCI , #1 Bank in Ivory Coast and nº1 Bank of the UEMOA zone  Société Générale Cameroun , #1 Bank in Cameroon  SGBS , #2 in Senegal and #1 in Investment Banking  Société Générale Algérie , #1 privately-owned Bank in Algeria  Société Générale Maroc , #1 privately-owned banking group in Morocco  SGBG , #2 Bank in Gunea  C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.5

CONNECTING MOZAMBIQUE TO THE MAJOR ECONOMIES Société Générale is incorporated as a Bank in all G20, except Argentina, Mexico and Indonesia (rep. office). GERMANY RUSSIA INDIA CHINA FRANCE USA AUSTRALIA TURKEY ITALY SOUTH KOREA UK JAPAN SAUDI ARABIA BRASIL SOUTH AFRICA CANADA MOZAMBIQUE C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.6

SOCIÉTÉ GÉNÉRALE IN MOZAMBIQUE  SGMOZ is a direct subsidiary of Société Générale group, an A rated (S&P) entity, listed in the Paris Stock Exchange. A SAFE BANK  Subject to strict controls, governance standards and best practices, giving an extra assurance to the depositors of the safety of their funds.  The only Global Bank in the Country, striving to be a reference.  Drive for excellence in customer satisfaction. WITH A STRONG  Quality services and products, innovative solutions and professional advisory. AMBITION  Customer-centric organization through the values of Société Générale: Team Spirit, Innovation, Responsibility and Commitment. SOON  Implementing an ambitious expansion plan, opening branches throughout the Country. EXPANDING ITS  This local presence will allow to provide a wide range of service, closer to the customers. PRESENCE  Development of tailor made solutions. PRODUCTS & SERVICES  Committed to innovation. C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.7

CHAPTER _ 02 FOREIGN EXCHANGE NORMS AND PROCEDURES | P.8 C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES |

FOREIGN EXCHANGE | NORMS & PROCEDURES Background Principles  The Mozambican Government approved on the 11 th September 2017, the Decree No.  Liberalization of current transactions. 49/2017, which entailed the revocation of Decree 83/2010, of December 31/12 –  Prior authorization of capital operations. Regulation of the Foreign Exchange Law. This deliberated Banco de Moçambique  Repatriation of export earnings from goods (Central Bank), acting as the foreign and services, in addition to income from exchange authority, the competence to Banking System abroad. approve the rules and procedures referent to the implementation of the commands  Obligatory utilization of the National Banking contained in the Foreign Exchange Law, from System (SBN - Sistema Bancário Nacional). 11/2009, of March 11.  In view of the alterations made, the Notice 20/GBM/2017 of 11 December - Standards and Procedures Exchange - entered into force.  Moreover, the revocation of the Circular No. 1/2015 from 18 th November, which prohibits Interbank’s transfers, between the same account holder, in foreign currency. C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.9

FOREIGN EXCHANGE | NORMS & PROCEDURES Fundamentals Structure and Content 1. Adjust the legislation according to the The notice is composed by 148 articles, market dynamics. distributed in 7 chapters: Chapter I - General Provisions; 2. Maintain the principle of liberalization of current transactions. Chapter II - Foreign Exchange Trade; 3. Authorize automatically, some of the Chapter III – Current Transactions; capital transactions. Chapter IV - Financial Operations; 4. Responsibility of perform regular registration (real time), in addition to Chapter V - Other Foreign Exchange adequate classification of the statistical transactions; data on the foreign exchange transactions. Chapter VI - Special Foreign Exchange 5. Reinforce the monitoring on the foreign regimes; exchange operations. Chapter VII - Final Provisions. C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.10

CENTRAL BANK’S NOTICE 20/GBM/2017 11 DECEMBER 2017 C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.11

NOTICE 20/GBM/2017 | THE ALTERATIONS MADE  Exclusion of the mandatory immediate conversion of 50%.  Opening of a specific current account, dedicated solely for the receipt of export Regime of export revenues. revenue repatriation, for Mandatory and precedent utilization of amounts held at the special accounts  goods and above mentioned, for the remittance of payments abroad. services, and  From the above mentioned specific current account, can only be processed income from transfers to accounts of the same nature, in foreign currency, within the SBN foreign (National Banking System). Hence, it is no longer allowed to remit payments, in investments foreign currency, to residents that are not exporters. (Art.8) Export revenues and foreign investment income can be converted to metical per  customer's request, at any time, whatever the purpose of value.  Introduction of the Commitment Agreement on import of Goods. Commitment Agreement on Similar process, when compared to the to the Export  Export and Import Commitment Agreement, yet to the opposite direction. Operations of Goods (art.30 and art.49) C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.12

NOTICE 20/GBM/2017 | THE ALTERATIONS MADE | CONT…  Increase of the limit’s amount, which is exempted from presentation of security, from USD 50,000.00 to USD 250,000.00. Anticipated  For amounts above USD 250,000.00, a performance bank guarantee shall be payments required. This guarantee must be issued from a foreign bank, and duly (art. 28) recognized by the importer’s bank Still within the anticipate payments arena, it was introduced the obligation to  present a commercial contract between the supplier and the buyer.  The submission is made by the interested party, through the Submission of intermediary bank, which in turn, shall check the documentation and application request for perform the proper characterization and contextualize the foreign exchange transaction. authorization of Capital Transactions  For the non-applicable cases, remit the duly instructed dossier to Central (art. 65) Bank (Banco de Moçambique), within a period of time of 5 days.  Authorized the opening of accounts in foreign currency to residents who have Opening of account a proven relationship abroad, or with a non-resident entity. in Foreign Currency  To be carried out by Central Bank (Banco de Moçambique) for all other (art. 105) situations not covered by the Article105. C0 | FOREIGN EXCHANGE | NORMS & PROCEDURES | | P.13