As from January 4th, 2016, the new Private Management Credit Information System enters into force. Albeit the majority of this regime is now defined, several regulations are yet to be published, specifying and establishing specific rules concerning different major subjects, such as, for instance, those concerning the client's right to access a copy of the report issued by the Central Credit Information Centre or other information used in the decision-making.
The following concepts are specially relevant in the operation of these centers:
- client information - credit, payment, financial and asset information concerning an identified or identifiable client, including data on personal identification. The identifiable client is a client that can be directly or indirectly identified, namely through a personal reference or company name, birthday or start date, address, identification or NUIT, or other specific identification or behavioral factors of the client;
- credit information - all information concerning the client's credit contracts as defined in the credit institutions and financial societies' law;
- negative information - information concerning noncompliance with the client's financial contract obligations.
This System is a set of private management credit information centers, operational procedures, data providers, subscribers and clients. Setting up a credit information center requires prior licensing from the Bank of Mozambique, and the granted license is non-transferable and non-negotiable. The minimum capital for credit information centers shall be laid down in a regulation.
These credit information centers can pursue the following activities:
- clients information's collection, storage and management, and also judicial information resulting from claim or enforcement proceedings for bankruptcy or insolvency, and information on debt securities protest actions;
- credit risk ranking;
- credit obligations compliance control and noncompliance notification;
- fraud prevention;
- credit stats;
- provision of the information contemplated in the precedent paragraphs;
- sale of specialized literature, software and other materials related to the relevant activities.
Subject to prior approval by the Bank of Mozambique, the credit information centers can also pursue the following activities:
- debtors assessment for companies under divestiture or other type of transaction of this nature;
- disclosure of information on market risks, strategic risks, and other;
- training and consultancy services;
- other activities authorized by the Bank of Mozambique.
Credit information centers should not unduly use the information available to them, namely for propaganda, advertisement or any other similar activity, nor undertake other activities except those currently authorized by the Bank of Mozambique.
These are prohibited from processing personal data concerning philosophical, ideological or political beliefs, party or union affiliation, religious faith, private life and racial origin or ethnicity, as well as processing data concerning health and sex life, including genetic data.
Credit information centers can only provide clients information to the following entities:
- Bank of Mozambique, within the framework of their competences, pursuant to the provisions of this law and to feed its own center.
- subscribers, provided that:
- the client signs a term of consent, pursuant to this law;
- the subscriber agrees to delete all superfluous clients' information.
- clients directly related to the information.
The information is supplied in the form of a report, except the information sent to the Bank of Mozambique, which must comply with the layout and frequency laid down in a regulation pending publication.
The ranking applied to a client should be derived from information collected within the sector of the requiring subscriber.
Credit information centers cannot record in their data bases clients information of uncertain origin and credits and payments overdue for over five years. Clients information, except for identification data, must be kept for a maximum period of five years starting from the maturity date.
Consent to share or consult a client's information at the Credit Information Center must be kept on file, either physical or electronic, for a two years period, starting from the termination date of the legal relationship with the provider or subscriber.
This regime also sets different rules of conduct concerning the credit information centers, several safety rules, namely those to ensure data integrity.
Credit institutions should receive a report from the Credit Information Center on the client in the following situations:
- before closing or amending a credit contract;
- on an annual basis or more often, to assess the ongoing credits.
The reports made available by the Credit information centers can be used for teh following purposes:
- credit request assessment, granted, credit revision and extension, granted credit facilities collection, including other commercial activities entailing deferred payment or instalments payment according to the law;
- assessment of an insurance request or claim of insurance payment or to monitor outstanding risks.
- fraud detecting and preventive measures taking;
- research for statistic purposes, provided in summary or collective form, excluding the possibility of individual identification of persons or institutions;
- any other purposes authorized by the Bank of Mozambique.
Clients information supply to centers and subscribers under the terms of this regime is outside the duty of secrecy.
However, credit information centers must protect confidentiality of information concerning the clients.
Except for those situations in which the law anticipates disclosure of data, the credit centers can only disclose information to judicial bodies in accordance to the terms of the criminal law and criminal procedure, and to other entities in case of a legal provision expressly limiting the secrecy duty.
References
Law nr. 6/2015, October 6th