Regulatory Alerts2018-10-25
Directive No. 03-DCC-2018, of October 26
The Foreign Exchange Control Department (DCC) mandates that commercial banks report all valid foreign currency operations awaiting coverage in the Foreign Currency Needs Map starting November 1, 2018, while excluding specific private and goods operations older than 90 and 60 days respectively. The directive requires banks to record letter of credit numbers, linked auction identifiers, and utilization dates in designated fields to streamline settlement monitoring under Quantity Auctions. It revokes the prior April 2018 directive and clarifies that unresolved interpretative matters fall under the DCC jurisdiction via dcc@bna.ao.
THE GOVERNOR DIRECTIVE NO. 03/DCC/2018 ORIGIN: Foreign Exchange Control Department (DCC) DATE 26/10/2018 SUBJECT: Foreign Exchange Policy - Submission of Information Regarding the Needs Map
Whereas it is necessary to ensure in the Foreign Currency Needs Map the registration of all valid foreign currency demand, as well as to simplify the process of monitoring and managing the settlement of letters of credit issued under Quantity Auctions; This Directive serves to establish the following:
- Without prejudice to compliance with the provisions of Directive No. 01/17, dated February 3, from November 1, 2018, all operations awaiting foreign exchange coverage must be reported in the Needs Map, including pending ones prior to 2018 with valid documentation.
- Commercial banks must only insert into the Needs Map operations that are fully in compliance with the current foreign exchange regulations, including those on preventing and combating money laundering.
- The following operations must not be included in the Needs Map: a) Private operations (travel and maintenance of individuals – family support) registered at the bank with complete documentation, older than 90 (ninety) days; b) Goods operations, registered at the bank with complete documentation, older than 60 (sixty) days from the date of issuance of the Ministry of Commerce License, which did not result in goods entering the country; c) Operations for foreign exchange replenishment purposes.
DIRECTIVE NO. 03/DCC/2018 Page 2 of 3 4. The operations referred to in items a) and b) above must be cancelled and reported to their clients for updating of their respective requests, if they maintain interest in doing so. 5. Commercial banks must also report to the Foreign Currency Needs Map, from November 1, 2018, the letter of credit number, the quantity auction number, and the utilization date of the Import Documentary Credit - IDC. 6. The letter of credit number must be indicated in the designated field, from knowledge of the utilization date, covering 10 consecutive days prior to the corresponding bank's debit. 7. The number of the auction linked to each letter of credit must be indicated in the "Instrument Page Observation" field, according to the format illustrated in the SGMC (YYYY/YYYY). 8. The utilization date must be indicated in the "Settlement/Maturity Date" field, covering 10 consecutive days prior to the corresponding bank's debit. 9. The reporting criteria for other needs, including open letters of credit and outside the scope of Quantity Auctions, remain unchanged. 10. Doubts and omissions resulting from the interpretation and application of this Directive are clarified by the Foreign Exchange Control Department, via the email address dcc@bna.ao.
DIRECTIVE NO. 03/DCC/2018 Page 3 of 3 11. Directive No. 01/DCC/2018, dated April 3, is hereby revoked. 12. This Directive enters into force on the date of its publication. Luanda, October 26, 2018. FOREIGN EXCHANGE CONTROL DEPARTMENT
Veloso Ndunguini Filipe Pedro -Director-