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2020-04-23

Circular Letter No. 001/DCF/2020

The National Bank of Angola’s Department of Financial Conduct clarifies that financial institutions are exempt from licensing contract models and technical information sheets for financial products and services, but must submit them to the regulator. Institutions bear full responsibility for ensuring compliance with existing regulations and are liable for any non-compliance or inconsistencies identified through the BNA’s own-initiative reviews or client complaints. This directive streamlines product development by granting institutions greater operational flexibility while maintaining regulatory oversight through targeted BNA intervention only upon detected sector violations.

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Banco Nacional de Angola

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DRAFT CARTA – CIRCULAR NO. 001/DCF/2020 SUBJECT: FINANCIAL SYSTEM

  • Licensing of Financial Products and Services

Whereas: I. Notices Nos. 02/2014, 13/2016 and 14/2016 regulate the information duties imposed on financial institutions regarding the provision of financial products and services, including credit; II. Banks must submit to the BNA technical information sheets, draft contracts, and other documents;

There is also a need to confer greater dynamism to the creation and provision of financial services and products to clients, as well as to assign greater responsibility for the preparation of contract models and technical information sheets for financial products and services;

The National Bank of Angola clarifies the following:

  1. Contract models and technical information sheets for financial products and services do not require licensing;

  2. In the development and creation of financial products and services, Financial Institutions must ensure compliance with the provisions set forth in the aforementioned regulations, as well as any others applicable;

  3. Financial Institutions must submit to the BNA contract models and technical information sheets for financial products and services; the BNA will only issue a ruling in cases where it identifies violations of sector norms and practices;

  4. Financial Institutions shall be held responsible for non-compliance and inconsistencies detected in contracts and technical sheets, whether arising from the BNA's own-initiative analysis or from client complaints.

  5. This Circular Letter applies to active financial banking institutions.

Luanda, April 23, 2020. DEPARTMENT OF FINANCIAL CONDUCT

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