Notice No. 12/2022 of May 4 on Minimum Share Capital and Regulatory Own Funds for Non-Bank Financial Institutions

PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 79, OF MAY 4, 2022 NOTICE NO. 12/2022 SUBJECT: FINANCIAL SYSTEM

• Minimum Share Capital and Regulatory Own Funds of Non-Bank Financial Institutions

Whereas it is necessary to define the minimum share capital and regulatory own funds of Non-Bank Financial Institutions under the supervision of the Bank of Angola; In accordance with Article 19(1) of Law No. 14/21 of May 19, the General Regime for Financial Institutions Law, combined with Article 31(1)(a) and (f) and Article 98(1) of Law No. 24/21 of October 18, the Bank of Angola Law.

I HEREBY DETERMINE: Article 1. (Subject Matter) This Notice establishes the minimum share capital and regulatory own funds applicable to Non-Bank Financial Institutions linked to currency and credit, under the supervision of the Bank of Angola.

Article 2. (Scope) CONTINUATION OF NOTICE NO. 12/2022 Page 2 of 4 This Notice applies to the Non-Bank Financial Institutions referred to in Article 7(3) of Law No. 14/21 of May 19, namely: a) Currency Exchange Companies; b) Financial Assignment Companies; c) Credit Guarantee Companies; d) Financial Leasing Companies; and, e) Payment Service Providers.

Article 3. (Share Capital and Regulatory Own Funds)

1. Non-Bank Financial Institutions must have fully paid-up share capital and maintain regulatory own funds at the following minimum values: a) For Payment Service Providers under Article 18(2)(a) and (b) of Notice No. 02/2022 of February 2: i. Principal – Kz 70,000,000.00 (seventy million Kwanzas); ii. Standard Class 1 – Kz 40,000,000.00 (forty million Kwanzas); and iii. Standard Class 2 – Kz 25,000,000.00 (twenty-five million Kwanzas). b) For Payment Service Providers offering services under Article 18(2)(c), (d) and (e) of Notice No. 02/2022: i. Funds Transfer – Kz 70,000,000.00 (seventy million Kwanzas); ii. Payment Initiation Service – Kz 25,000,000.00 (twenty-five million Kwanzas); and iii. Account Information Service – Kz 20,000,000.00 (twenty million Kwanzas).

CONTINUATION OF NOTICE NO. 12/2022 Page 3 of 4 c) For Currency Exchange Companies – Kz 50,000,000.00 (fifty million Kwanzas); d) For Financial Assignment Companies – Kz 100,000,000.00 (one hundred million Kwanzas); e) For Financial Leasing Companies – Kz 100,000,000.00 (one hundred million Kwanzas); and f) For Credit Guarantee Companies – Kz 250,000,000.00 (two hundred and fifty million Kwanzas). 2. Currency Exchange Companies authorized to offer funds transfer services must align their share capital and regulatory own funds with the minimum specified in item i) of subsection b) above. 3. Payment Service Providers must establish special reserves to strengthen net worth or cover losses not absorbable by the profit and loss account.

Article 4. (Increase in Share Capital)

1. Non-Bank Financial Institutions may increase share capital by adopting one or both of the following options: a) Issuance and subscription of new shares; and b) Capitalization of legal reserves, free reserves, or current year results, provided they are audited.
2. Non-Bank Financial Institutions unable to meet the minimum share capital requirements under the preceding subsection must consider other alternatives, including merger or transfer of their activities to one or more authorized Non-Bank Financial Institutions.

Article 5. (Offences) CONTINUATION OF NOTICE NO. 12/2022 Page 4 of 4 Non-compliance with the provisions of this Notice constitutes an offence under and punishable by Law No. 14/21 of May 19, the General Regime for Financial Institutions Law.

Article 6. (Repeal) Notice No. 8/2018 of November 29, Notice No. 18/20 of August 12, and all regulations contrary to this Notice are hereby repealed.

Article 7. (Interpretation and Omissions) Doubts and omissions arising from the interpretation and application of this Notice shall be resolved by the Bank of Angola.

Article 8. (Entry into Force) This Notice enters into force on the date of its publication.

PUBLISH. Luanda, March 29, 2022. THE GOVERNOR JOSÉ DE LIMA MASSANO