Notice No. 05/2021, dated April 14

PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 65, ON APRIL 14, 2021 NOTICE NO. 05/2021 SUBJECT: EXCHANGE RATE POLICY

• Rules and Procedures for the Execution of Foreign Currency Operations by Individuals

CONSIDERING the need to update and clarify the rules and procedures for making payments abroad related to foreign currency operations involving current invisibles, goods, and capital flows ordered by resident and non-resident individuals; IN EXERCISE of the authority conferred upon me by the combined provisions of paragraph 2 of Article 28 of Law No. 5/97, dated July 27 – Exchange Rate Law, and Articles 40 and 51 of Law No. 16/10, dated July 15 – Law of the Bank of Angola. I HEREBY DETERMINE:

CHAPTER I General Provisions Article 1. (Subject Matter) This Notice establishes the rules and procedures to be observed in carrying out foreign currency operations involving the purchase of foreign currency or the transfer of own foreign currency resources abroad, by resident and non-resident individuals, namely:

1. Operations by resident individuals a) Current Invisible Operations, namely: CONTINUATION OF NOTICE NO. 05/2021 Page 2 of 8 i. coverage of travel expenses, legal services, health and education, unilateral private transfers, including for family support and donations. ii. transfer of imported or accumulated resources by a foreign citizen during their residence in the country under a residence authorization visa, at the end of their stay or mission completion. b) Goods Import Operations, namely: i. coverage of the acquisition of personal-use goods and equipment abroad. c) Financial and Capital Operations, namely: i. Financing contracted with a foreign financial institution; ii. acquisition of real estate or property assets abroad.
2. Operations by Non-Resident Individuals: i. transfer of employment income as an employee; ii. transfer of imported resources into the country; iii. transfer of capital income.

Article 2. (Scope) The recipients of the provisions in this Notice are the parties involved in carrying out foreign currency operations, namely: a) Individuals initiating the aforementioned operations; b) Financial Institutions acting as intermediaries in the aforementioned operations.

Article 3. (Definitions) For the purposes of this Notice, the following terms mean:

CONTINUATION OF NOTICE NO. 05/2021 Page 3 of 8 b) Foreign Currency Operation: the sale of foreign currency to a client or the debit of a client's account with own foreign currency resources, to cover an operation involving current invisibles, goods, or capital. c) Resident Individual: as defined in paragraph 1 of Article 4 of Law No. 5/97 dated June 27, Exchange Rate Law, including foreign citizens residing in Angola under a residence fixation visa. d) Non-Resident Individual: as defined in paragraph 2 of Article 4 of Law No. 5/97 dated June 27, Exchange Rate Law, including foreign workers who are non-resident individuals and exercise a remunerated activity in the country.

Article 4. (Financial Intermediation) The intermediation of foreign currency operations covered by this Notice may only be carried out by a Financial Institution authorized to conduct exchange business, within the framework of current legislation.

Article 5. (Licensing by the Bank of Angola)

1. The operations covered by this Notice are exempt from licensing by the Bank of Angola, without prejudice to the obligation of their registration as provided in Article 7 of this Notice.
2. Goods import operations carried out by individuals are subject to regulations on the rules and procedures applicable to foreign currency operations for goods import and export.
3. The Bank of Angola, pursuant to paragraph 1 of Article 2 of Decree No. 23/98, dated July 24 – approving the Regulation on Capital Operations, delegates to Banking Financial Institutions the competence to carry out the financial and capital operations provided for in this Notice.

CONTINUATION OF NOTICE NO. 05/2021 Page 4 of 8 Article 6. (Responsibilities of Commercial Banks in Processing Foreign Currency Operations)

1. Financial Institutions must ensure, prior to executing any foreign currency operation under this Notice, that they know their customers and that the operations meet all requirements referred to in exchange rate legislation and regulations, as well as legislation and regulations on anti-money laundering (AML) and combating the financing of terrorism (CFT).
2. Banking Financial Institutions may only execute foreign currency operations: a) Upon request by customers whose account opening files are adequately documented and updated, as required by current legislation and regulations; b) After determining the ordering party's financial capacity, considering proven income, ensuring the legitimacy of holding funds in national currency used to purchase foreign currency or the customers' own foreign currency resources; c) If the total value of the requested operation and operations already carried out in the calendar year by the ordering party is compatible with their financial capacity.
3. Whenever the evaluation of operations raises doubts, Financial Institutions must request additional information and refrain from executing them until satisfactory clarification by the ordering party.

Article 7. (Registration of Foreign Currency Operations in SINOC)

1. Financial Institutions must register the foreign currency operations covered by this Notice in the Integrated Foreign Currency Operations System (SINOC), regardless of their purpose and the currency of the debited account.
2. Procedures for registering operations in SINOC are defined in specific regulations.

Article 8. (Foreign Currency Coverage and Settlement)

1. Foreign currency coverage for settling the operations subject to this Notice must be processed by using the ordering party's own foreign currency funds or by purchasing foreign currency.
2. The ordering party's national currency account, in the case of purchasing foreign currency, or the foreign currency account, in the case of using the client's own resources, must be debited as follows:

CONTINUATION OF NOTICE NO. 05/2021 Page 5 of 8 a) On the date of execution of the payment order abroad; b) On the date of loading or settlement of the balance of an international brand card; c) On the date of delivery of foreign currency cash. 3. Transfers for financial and capital operations must be credited directly to the seller's or their agent's account, according to contractually reflected terms and conditions.

Article 9. (Payment Instruments)

1. For foreign currency operations covered by this Notice, the use of bank transfers, international payment cards, non-negotiable named checks, or other analogous international payment instruments is permitted.
2. When customers purchase foreign currency for travel purposes, Financial Institutions may provide cash, respecting the current limits on the entry and exit of cash from the country as defined in specific regulations.

CHAPTER II Operations Ordered by Resident Individuals Article 10. (Annual Limit)

1. Resident individuals over 18 years of age may purchase foreign currency or use their own foreign currency funds for any purposes abroad, including investments, personal and family expenses, up to a cumulative amount equivalent to USD 250,000.00 (Two Hundred and Fifty Thousand United States Dollars), per calendar year, regardless of the payment instrument used.
2. The following operations are exempt from any annual limit: a) Payment of health, education, accommodation, transport expenses and legal service charges, when made directly to the service providers or authorized agents; b) Transfer of resources accumulated by foreign resident individuals during their stay in the country, upon cessation of their residence; c) Transfer of resources imported into the country and declared upon entry by foreign resident individuals.

Article 11. (Foreign Currency Operations with Value Exceeding the Annual Limit) The Bank of Angola may exceptionally authorize duly justified requests to transfer amounts exceeding the limit established in the previous article, with interested parties submitting their request through a Banking Financial Institution for prior review and subsequent forwarding to the Bank of Angola for decision.

Article 12. (Submission of Documentation)

1. Ordering parties for private operations within the limit referred to in Article 10 of this Notice are exempt from submitting any supporting documentation to the Banking Financial Institution, and need only indicate the underlying purpose of the operation for statistical purposes.
2. In the case of purchasing foreign currency or transferring own foreign currency resources for expenses provided for in paragraph a) of number 2 of Article 10 of this Notice, the Banking Financial Institution must obtain the invoice or other billing document.
3. In cases of transferring resources accumulated by foreign resident individuals during their stay in the country, upon cessation of residence, or imported resources declared upon entry by these citizens, Banking Financial Institutions must request the necessary documentation to evaluate the reasonableness of the amounts to be transferred.

CHAPTER III Operations Ordered by Non-Resident Individuals Article 13. (Current Invisible Operations)

1. Foreign non-resident individuals exercising a remunerated activity in the country must open a non-resident foreign currency account at a Banking Financial Institution headquartered in Angola, where their income shall be domiciled.
2. The workers referred to in the previous paragraph may purchase foreign currency and transfer abroad their legally earned income under an employment contract, which they may do at any time, with any frequency higher than the receipt of income.
3. In the foreign currency purchase operations referred to in the previous paragraph, Banking Financial Institutions must verify:

CONTINUATION OF NOTICE NO. 05/2021 Page 6 of 8 a) The existence of an employment contract duly approved by the supervising ministry and its validity period; b) That the amounts the worker intends to transfer are consistent with the income earned under the employment contract. 4. The transfer of income by foreign non-resident individuals in the petroleum sector is governed by specific regulations. 5. Capital income transfer operations, namely interest on bank deposits and securities, as well as dividends, are governed by specific regulations.

CHAPTER IV Final Provisions Article 14. (Penalties) Violations of the provisions in this Notice are punished under Law No. 5/97 dated June 27 - Exchange Rate Law, and Law No. 12/2015 dated June 17 - Basic Law of Financial Institutions.

Article 15. (Doubts and Omissions) The Bank of Angola is responsible for clarifying doubts and omissions resulting from the interpretation and application of this Notice.

Article 16. (Repealing Provision) Notice No. 17/2020, dated August 3, and all other normative provisions contrary to the provisions of this Notice are repealed.

Article 17. (Entry into Force) This Notice enters into force 30 (thirty) days after the date of its publication.

PUBLISH. Luanda, on April 5, 2021. THE GOVERNOR JOSÉ DE LIMA MASSANO