Notice No. 06/2023: Operational Rules for Microcredit Societies

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NOTICE NO. 06/2023 SUBJECT: FINANCIAL SYSTEM

• Operational Rules for Microcredit Societies Considering the need to align regulations regarding Microcredit Societies, aiming at financial inclusion, a crucial factor for fostering economic activity. Pursuant to the Regulations for Microcredit Societies and Microcredit Operators, approved by Presidential Decree No. 89/23 of March 31, combined with item h) of paragraph 3 of Article 7 of Law No. 14/21, dated May 19, General Regime of Financial Institutions Law, item f) of paragraph 1 of Article 31 and Article 98, both of Law No. 24/21, dated October 18, Bank of Angola Law. HEREBY DETERMINED: Chapter I General Provisions Article 1. (Subject Matter)

1. This Notice establishes the operational rules appropriate for activities permitted by Microcredit Societies, as well as the reporting obligations to which they are subject.
2. This Notice further establishes the requirements and procedures for services provided by Microcredit Operators. Article 2. (Scope) This Notice applies to Microcredit Societies and Microcredit Operators. Microcredit.

Continuation of Notice No. 06/2023, Page 2 of 6 Article 3. (Definitions) For the purposes of this Notice, the following terms are understood as: a) Social Interest Associations or Foundations: private law entities, endowed with legal personality and characterized by the grouping of persons to achieve common objectives and ideals, without profit motive. b) Monitoring: oversight by the Bank of Angola for statistical purposes, consisting essentially in receiving general and periodic information regarding services provided by Microcredit Operators and Microcredit Societies whose activity is financed with own funds and/or through financing from National Banking Financial Institutions. c) Microcredit Operator: companies whose corporate purpose includes granting microcredit on a non-exclusive basis, including non-governmental organizations, associations and foundations, legally established, as well as public entities that develop microcredit initiatives. d) Non-Governmental Organizations: non-profit entities created by persons working voluntarily in defense of a sociocultural or humanitarian cause. e) Supervision: activity carried out by the Bank of Angola consisting in the inspection and monitoring of compliance with prudential norms regarding requirements, procedures and prudential supervision processes and risk management, aiming at both the protection of the financial system as a whole and the security of public funds deposited in Institutions, pursuant to Law No. 14/21, dated May 19, General Regime of Financial Institutions Law and Law No. 24/21, dated October 18, Bank of Angola Law.

Continuation of Notice No. 06/2023, Page 3 of 6 Article 4. (Limits) Under this Notice, Microcredit Societies and Microcredit Operators exercising the activities listed in Articles 5. and 11. of this Notice may only grant credit in the following amounts: a) Microcredit Societies considered Institutions whose financing sources are provided for in Article 6. of this Notice, with a maximum credit granting limit per client up to Kz 2,500,000 (two million five hundred thousand Kwanzas); b) Microcredit Operators exempt from licensing by the Bank of Angola, subject only to registration, maximum credit granting limit Kz 250,000 (two hundred fifty thousand Kwanzas). Chapter II Microcredit Societies Article 5. (Permitted Activities) Microcredit Societies are permitted to carry out the following activities: a) Granting of small-amount credit; b) Provision of consulting services to their clients; and c) Provision of guarantees. Article 6. (Financing Sources) Microcredit Societies may only finance their activities with own funds and/or through the following resources: a) Public financing lines; and b) Financing from national and international Financial Institutions.

Continuation of Notice No. 06/2023, Page 4 of 6 Article 7. (Supervision and Information Reporting)

1. Microcredit Societies are subject to prudential and behavioral supervision, as defined in Law No. 14/21, dated May 19, General Regime of Financial Institutions Law and other applicable regulations.
2. The Bank of Angola defines in specific regulations the terms and conditions for information reporting. Article 8. (Accounting) Microcredit Societies must carry out accounting registration of their operations, in accordance with the Chart of Accounts for Non-Banking Financial Institutions. Article 9. (External Audit) The financial statements of Microcredit Societies must be audited by a certified accountant accredited by the respective professional body. Article 10. (Complementary Activities) Microcredit Societies wishing to exercise payment service provision activities must comply with specific legislation and regulations, in accordance with item a) of paragraph 1 of Article 12. of Law No. 40/20, dated December 16, Angola Payment System Law.

Continuation of Notice No. 06/2023, Page 5 of 6 Chapter III Microcredit Operators Article 11. (Permitted Activities) Microcredit Operators may only grant small-amount credits using own funds. Article 12. (Information Reporting) The Bank of Angola defines in specific regulations the terms and conditions for information reporting by Microcredit Operators. Article 13. (Repeal) All regulations contrary to the provisions of this Notice are hereby repealed. Article 14. (Sanctions) Non-compliance with the provisions established in this Notice by Institutions subject to supervision by the Bank of Angola constitutes an offense provided for and punishable under Law No. 14/21, dated May 19, General Regime of Financial Institutions Law. Article 15. (Questions and Omissions) Questions and omissions resulting from the interpretation and application of this Notice are resolved by the Bank of Angola. Article 16.

Continuation of Notice No. 06/2023, Page 6 of 6 (Entry into Force) This Notice enters into force on the date of its publication. PUBLISH. Luanda, June 23, 2023. THE GOVERNOR MANUEL ANTÓNIO TIAGO DIAS