Guideline No. 01/2022, dated February 22 – Foreign Currency Purchases on the Bloomberg FXGO Platform by Major National Importers

GUIDELINE NO. 01/2022, dated February 22 SUBJECT: FOREIGN EXCHANGE POLICY – Foreign Currency Purchases on the Bloomberg FXGO Platform by Major National Importers

With the objective of increasing the efficiency of the Foreign Exchange Market, the Central Bank of Angola has decided to continue expanding the base of entities that trade foreign currency purchases with Commercial Banks through the Bloomberg FXGO trading platform. To this end, it has been decided to grant access to trading on the aforementioned platform to major national importers who meet certain requirements. Pursuant to Article 39 of Law No. 24/21, dated October 18, the Central Bank of Angola Law, and in exercise of the competence conferred upon me by Article 54 of said Law, I HEREBY DETERMINE:

1. Subject and Scope 1.1. This Guideline establishes: a) The conditions for accessing the Bloomberg FXGO platform, hereinafter referred to as “FXGO”, by major national importers; b) The rules and procedures that they must observe in trading foreign currency purchase operations, through FXGO, and in paying their non-resident foreign exchange suppliers of goods and services.

1.2. This Guideline covers Commercial Banks and the major national importers referred to in sub-point 2.1 of this Guideline.

2. Access to FXGO 2.1. Major national importers, hereinafter designated as “importers”, may request authorization from the Central Bank of Angola to purchase foreign currency through FXGO, exclusively for paying their non-resident foreign exchange suppliers, provided they meet the following requirements: a) Classification as a Major Taxpayer by the General Tax Administration; b) Audited financial statements for the last two fiscal years by an entity certified by the Angolan Order of Chartered Accountants and Accounting Experts.

2.2. The authorization request referred to in sub-point 2.1 must be submitted through the Commercial Bank with which the importer maintains its primary business relationship, accompanied by a declaration signed by the financial administrator, or person performing that function in the company, confirming: a) Their detailed knowledge of the foreign exchange regulations applicable to payments to non-resident foreign exchange suppliers, particularly regarding goods imports and services provided by non-resident foreign exchange entities; and b) Their personal responsibility to ensure full compliance therewith.

2.3. Commercial Banks must verify that requesting importers meet the requirements referred to in sub-point 2.1 before forwarding their requests to the Asset Markets Department (DMA) via email at dma@bna.ao, and must in their communication: a) Identify the requesting importer; b) Confirm that the account opening process is complete and up-to-date, and that they adequately know their client and operations; c) Inform whether the client has a record of non-compliance with foreign exchange regulations; d) Attach a copy of the client's request and supporting documents as stipulated in sub-point 2.2.

2.4. The Central Bank of Angola evaluates each importer's request and communicates its decision to the Commercial Bank within 10 (ten) business days of receiving the request or any additional elements subsequently requested to complete its evaluation.

2.5. Following authorization by the Central Bank of Angola, importers covered by this Guideline must: a) Conclude a subscription contract with Bloomberg for the acquisition of an FXGO trading terminal. b) Open an account with the Commercial Bank mentioned in sub-point 2.2, exclusively for crediting foreign currency acquired via FXGO and debiting payments to non-resident foreign exchange suppliers.

3. Purpose of Foreign Exchange Operations Importers may only trade foreign exchange operations that comply with foreign exchange regulations, are strictly linked to their business and conducted in their own name, particularly for paying their non-resident foreign exchange suppliers of goods and services. At the time of trading the foreign currency purchase, there must be an effective payment obligation.

4. Trading on FXGO 4.1. Importers trading foreign exchange operations through FXGO may only, on this platform: a) Purchase foreign currency from Commercial Banks or the Central Bank of Angola; b) Trade operations with values exceeding USD 50,000.00 (fifty thousand United States dollars) spot or forward, with lower-value operations to be traded directly with their Commercial Banks.

4.2. Importers are exempt from submitting supporting documents for foreign currency purchase operations traded through FXGO, but must produce justificatory documentation for the transfer to the non-resident foreign exchange supplier's account upon request by the Commercial Bank executing said transfer.

5. Procedures for Trading on FXGO 5.1. The trading of foreign currency purchases is executed on FXGO via RFQ (Request for Quote) or STA (Single Tenor Auction) commands. 5.2. In negotiations, importers must, on FXGO: a) Indicate the currency and value they wish to purchase, as well as the value date; the indicated currency must be that of the obligation to be settled; b) Select Commercial Banks from which they wish to obtain quotes, regardless of whether they have open accounts in those banks, and must obligatorily include the Central Bank of Angola in their selection via dealing code BBNA. 5.3. When inserting the value they wish to purchase, importers may round up the obligation amount for which they are buying foreign currency to the nearest higher thousand.

6. Clearing Procedures for Operations Traded on FXGO 6.1. After selecting the selling Commercial Bank, importers must insert into FXGO the information of their bank accounts to be debited and credited. 6.2. The purchased foreign currency may only be credited to an account held by the importer who executed the trade, opened in accordance with clause b) of sub-point 2.5 of this Guideline. 6.3. An importer who does not hold a bank account with the selling Commercial Bank of foreign currency must, immediately after confirming the trade on FXGO, instruct the transfer of the counter-value in national currency to the seller, with the value date agreed upon in the trade. 6.4. The selling Commercial Bank of foreign currency, in cases stipulated in the preceding sub-point, may confirm with the importer's Commercial Bank the availability of national currency and receipt of the transfer request before executing its foreign currency transfer. 6.5. Importers who do not instruct national currency transfers within the agreed trade deadlines shall be subject to the sanctions referred to in number 10 of this Guideline.

7. Deadlines for Executing Foreign Currency Payments to Non-Resident Foreign Exchange Suppliers 7.1. Importers must, within a maximum of 48 (forty-eight) hours from the crediting of foreign currency in their bank accounts, instruct the transfer to the non-resident supplier, with the execution of the transfer subject to number 8 of this Guideline. 7.2. Residual values resulting from the rounding referred to in sub-point 5.3 may be retained in account, and must be used exclusively for payments to non-resident foreign exchange suppliers. 7.3. The total of residual values accumulated in the account must not exceed USD 100,000.00 (one hundred thousand United States dollars). 7.4. Foreign currency exceeding the value referred to in the preceding sub-point and not intended for paying an existing obligation to a non-resident foreign exchange supplier within 48 (forty-eight) hours must be sold to the Commercial Bank where the account is domiciled.

8. Responsibilities of Commercial Banks 8.1. Commercial Banks, with which importers maintain their primary business relationship and that execute transfers to non-resident foreign exchange suppliers, must ensure compliance, in particular, with the following legislation and regulations: a) Anti-money laundering and counter-terrorist financing prevention, through customer due diligence; b) Foreign exchange regulations, requiring the solicitation of necessary documentation to ensure the legitimacy of operations in accordance with current regulations on goods imports and payments for current invisibles. 8.2. In case of doubts regarding the legitimacy of a foreign exchange operation, Commercial Banks must refrain from executing the transfer to the non-resident foreign exchange supplier and act in accordance with the regulations referred to in the preceding sub-point.

9. Record Keeping Importers must maintain a properly organized archive with all supporting documentation of operations traded through FXGO, and payments to non-resident foreign exchange suppliers, in accordance with applicable legislation.

10. Non-Compliance 10.1. The Central Bank of Angola determines the penalties to be applied in case of non-compliance with this Guideline, based on its severity and in accordance with the Foreign Exchange Law and the General Regime of Financial Institutions Law, as applicable, to importers or Commercial Banks. 10.2. Penalties applicable to importers include temporary or permanent prohibition from trading foreign currency operations.

11. Questions and Omissions Questions and omissions arising from the interpretation and application of this Guideline are resolved by the Central Bank of Angola.

12. Entry into Force This Guideline enters into force on the day following its publication.

PUBLISHED. Luanda, February 22, 2022. THE GOVERNOR JOSÉ DE LIMA MASSANO