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Salim Valá: “BVM is Vital in Combating Money Laundering and Promoting Formal Economy”

Salim Valá: “BVM is Vital in Combating Money Laundering and Promoting Formal Economy”

The Chairman of the Board of Directors of the Mozambique Stock Exchange (BVM), Salim Valá, said last Friday, 23 June, that the Exchange is a vital instrument for combating money laundering and promoting the formal economy.

The head of BVM was speaking during the 18th Annual Private Sector Conference (CASP) on the panel on “Money Laundering and Associated Risk: Its Impact on Attracting Investment and Financing the Economy”.

Salim Valá said that “with 13 listed companies in the equity segment, a market capitalisation of 177.6 billion meticais, representing 26% of GDP, 249 securities and 25 110 holders registered with the Central Securities Exchange (CVM), BVM is a small stock exchange and still not very exposed to the global financial system and to the danger of the phenomenon of money laundering and financing of terrorism.

The head of BVM explained that in recent years, his institution has strengthened the mechanisms of audit and internal control, risk management, compliance and good corporate governance. “Corporations are required to register with the CVM, thus reinforcing the mechanisms of integrity, credibility, trust and transparency in transactions involving securities,” he pointed out.

“Before the admission of companies to the Stock Exchange, we have carried out ‘due diligence’ on the companies and investors in order to assess the legal conformity, economic and financial situation and market requirements, a process that is maintained through the monitoring and traceability mechanism by virtue of the companies being subject to the obligation to publish information to investors and the market through the BVM’s Bulletin of Quotations,” he explained.

And because stock exchanges are ethical business centres and vital instruments for promoting good corporate governance, Salim Valá pointed out that “we have been mobilising companies from sensitive areas of the economy to list on the Exchange, such as banking institutions, insurance companies, public-private partnerships, business concessions, natural resource exploration companies, mobile telephony companies, and those in the State Business Sector. In the future, the Stock Exchange may be a vital pillar for promoting the formalisation of the economy, a concern and challenge for both the private sector and the State.

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