Standard Bank will pay a 290 million metical fine, following the suspension of the bank for one year from all foreign exchange market activities for "serious violations".announced this Monday the Bank of Mozambique.

According to a press release issued late Monday, the Bank of Mozambique has also decided to initiate "criminal proceedings" against two managers of the institution, namely Adimohanma Chukwuama and Carlos Madeira, who are disqualified from holding positions in credit institutions for six years and will have to pay fines of six million meticais and 14 million meticais, respectively.

The note adds that the infractions committed include "fraudulent manipulation of the exchange rate, installation and implementation of an illegal payment network based outside the country, conduct of irregular operations of financial derivatives to cover risks associated with currency fluctuation," among other irregularities.

"In order to safeguard the interests of customers and other stakeholders, as well as ensure the stability of the financial system, Standard Bank's shareholders are collaborating with the Bank of Mozambique in order to remedy the irregularities mentioned above," stresses the note of the central bank, adding that continuous monitoring measures have been prepared that may lead to the lifting of the suspension before the stipulated deadline.

Standard Bank's suspension from the Interbank Foreign Exchange Market was announced on June 23, and the next day the central bank announced the opening of three "contravention proceedings" against that banking institution and two of its employees.

The Mozambican central bank's decision follows "findings from the on-site inspection.

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

In the ratio that measures the importance to the sector, labeled with the English acronym D-SIB, BCI tops the list with 278 points, followed by Millennium Bim with 257 and Standard Bank with 159.