Standard Bank, one of the largest commercial banks operating in Mozambique, was suspended on Monday, 12, by the Bank of Mozambique from all foreign exchange and currency conversion activity for a period of up to one year, due to "serious prudential and foreign exchange violations".

The decision results from the inspection that was being carried out at Standard Bank, which detected at least five aspects that violate the operation rules imposed by the Mozambican legislation.

"The offenses committed include fraudulent manipulation of the exchange rate, installation and implementation of an illegal payment network based outside the country, failure to regularize the terms of commitment of exports and failure to deliver to the Bank of Mozambique recordings within the stipulated deadlines, in a clear action of obstruction of the inspection activity," the Central Bank describes in a statement.

In addition to the suspension, Standard Bank will have to pay a fine of 290 million meticais (about four million dollars).

In parallel, two managers of that bank, namely Adimohanma Chukwuma Nwokocha (managing director of Nigerian nationality), and Carlos Domingos Francisco Madeira (director of Corporate and Investment Banking, of Mozambican nationality), were included in the Bank of Mozambique's penalties, with measures that, in addition to fines, include the suspension of any management position in credit institutions and financial companies in the country, for a period of six years.

The measures announced are the culmination of an investigation that began last month and had led to a precautionary suspension of Standard Bank, which created embarrassment for customers with foreign currency accounts.