Instruction No. 8/94: Floating Exchange Rate Regime and Current Invisible Operations

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INSTRUCTION NO. 8/94 SUBJECT: -Floating Exchange Rate Regime . Current Invisible Operations Within the framework of the Economic and Social Programme for 1994, the methodology for two-tier foreign exchange operations under the floating exchange rate regime, as referred to in Decree No. /94, of April, by the Council of Ministers, was established through Instruction No. 4/94, of April; Considering that the aforementioned Instruction also revoked Instruction No. 04/93, of June 17, under which the National Bank of Angola had delegated to operating financial institutions certain competencies for the licensing of current invisible foreign exchange operations and unilateral transfers; Deeming it necessary that such competencies be re-established with the necessary adjustments and adaptations to the new exchange regime, In exercise of the competence provided for in Article 42 of the Organic Law of the National Bank of Angola, I HEREBY DETERMINE: Article 1 (CURRENT INVISIBLES) Financial institutions authorized to conduct foreign exchange business may carry out, without any prior authorization from the National Bank of Angola, current invisible foreign exchange sale operations as indicated below:

1. FOR EDUCATIONAL, SCIENTIFIC OR CULTURAL PURPOSES: Sale of foreign currency intended for monthly remittances up to the equivalent of US$ 2,500.00, for the maintenance of individuals domiciled in the Country who are abroad for a maximum period of 90 days, fulfilling programs of an educational, scientific or cultural nature. 1.1 - The operations provided for in this title are carried out upon presentation, by the purchaser of the foreign exchange, of a document proving the purpose of the trip, the duration of the event and a declaration attesting that the same operation has not been carried out at another financial institution. 1.2 – The amount corresponding to the first month of stay abroad may be acquired before boarding, and the remittance of the subsequent monthly payments may be made upon presentation, by the representative of the interested party, of a document indicating the establishment where the study program is carried out and attesting attendance. 1.3- Upon confirmation that more than one remittance of the currency has been made, within the same period in favor of the same beneficiary abroad, or in an amount higher than provided for in item 1 above, the respective senders shall be held responsible, before the National Bank of Angola, for taking the necessary measures to return the excess transferred amount to the country. 1.4 – The documents referred to in the preceding items constitute the file for the foreign exchange operation and shall be kept on file by the institution for the period that may be established.
2. FOR HEALTH TREATMENT: Sale of foreign currency intended to cover hospital medical expenses abroad up to US$ 5,000.00, in addition to the amount provided for travelers. 2.1 – The operations referred to in the preceding item are carried out upon: a) presentation of a medical certificate issued by a medical entity authorized to operate in the country, recommending hospital medical treatment abroad and indicating the name of the illness or its international code; b) declaration from the doctor or clinic abroad where the treatment will be carried out, except in cases of recognized urgency. 2.2 -Observing the limit referred to in item 2, the sale of foreign exchange for reimbursement of expenses for treatment already completed is also permitted, by payment order or directly in favor of the institution or the doctor providing the assistance abroad, upon presentation of an invoice or debit note, on which the following data must be recorded:

-foreign exchange sale slip number -date of sale and the amount in foreign currency

• name and location of the accredited institution. 2.3 -The documents proving the medical-hospital expenses must be presented to the operating financial institution, within 60 days after the beneficiary's return to the country, under penalty of sanctions under the Law and prohibition of carrying out the new transfer.

3. FOR TRAVELERS: Sale of foreign currency to travelers up to the equivalent value of US$ 3,000.00 (three thousand United States dollars), per person and per trip, and upon presentation of proof of boarding (passport with entry visa to the country to be visited and ticket). 3.1 -At the time of the operation, the operating institution must: a) require the presence of the traveler or, in cases of proven incapacity, their legal representative; b) verify, by the entry visa to the visited country, the completion of the trip related to the previous sale; c) attach, in cases of sale to a legal representative, a copy of the instrument granting powers to the representative to carry out the operation or, in the case of representation of minor children, the birth certificate, identity card or respective birth certificate. 3.2 -It is prohibited for the operating institution to deliver or assign, to any intermediary between the seller and the buyer, traveler's checks, sale or purchase slips or other forms for its use. 3.3 -Residents abroad, upon leaving the national territory, are permitted to repurchase up to 50% (fifty percent) of the value of the sale made to the operating institution, upon presentation of the respective slip. After its use, the said slip will be returned to the customer with the inscription "VOID FOR REPURCHASE" expressed between two diagonal and parallel lines.
4. FOR BUSINESS, SERVICES OR TRAINING: Sale of foreign currency to legal entities, intended to cover the expenses of their employees abroad, on business, service or training trips and in addition to the amount provided for travelers, upon presentation of a formal letter on company letterhead from the employer, stating the purpose of the trip, the duration of the stay abroad and the position of the traveler. 4.1 -The national currency equivalent of the foreign exchange operation must be debited from the deposit current account in the name of the employing entity or paid with a check issued by it. 4.2 -The sale of foreign currency for the operations provided for in item 4 is subject to maximum daily allowance limits of US$ 350.00, 300.00 and 200.00, depending on whether it concerns respectively the president and vice-president, director or equivalent positions and others. 4.3 -If the beneficiary returns to the country before the scheduled end of the mission that is the subject of the trip, the foreign currency acquired, corresponding to the days of early return, must be resold to the operating institution under penalty of the beneficiary incurring an offense under the Law. Article 2 (UNILATERAL TRANSFERS)
5. Financial institutions authorized to conduct foreign exchange business may carry out operations corresponding to unilateral transfers from abroad to the country, without prior authorization from the Central Bank, understood as those that, due to their unilateral nature, do not imply the counterpart of providing goods or rendering services by the beneficiary of the payment and are not characterized as capital remittances, fundamentally relating to: a) donations from abroad; b) maintenance of an individual resident or domiciled in the country; c) prizes won abroad in sports competitions or other events under any title; d) contributions to legally existing professional associations in the country; e) inheritances and bequests, exclusively for individuals domiciled in national territory; f) pensions and allowances received abroad by individuals domiciled in national territory; g) transfer of assets from abroad to the country, exclusively for individuals. 1.1 -When carrying out the foreign exchange purchase provided for in the preceding item, the operating financial institution must identify the customer selling the foreign currency, when this is a legal entity, making the relevant notes on the purchase slip.
6. The aforementioned institutions may carry out operations corresponding to unilateral transfers from the country to abroad as indicated below: 2.1 – CONTRIBUTIONS TO PROFESSIONAL ASSOCIATIONS: remittance abroad, by individuals (up to the limit equivalent to US$ 2,000.00 annually), or legal entities (up to the limit equivalent to US$ 10,000.00 annually) of funds intended for the payment of admission fees or associative contributions to professional associations abroad. 2.1.1 -The transfers referred to in the preceding item may only be carried out under the modality of payment order or check, in favor of a professional association abroad whose objectives are compatible with the applicant's field of activity, upon presentation of an invoice, debit note or equivalent document, which must contain at least the following elements: a) the name of the professional association abroad; b) the amount of the remittance; c) the period to which the payment refers, in case of periodic contribution. 2.1.2 -The documents referred to in the preceding item must be kept on file by the institution in the manner and timeframe that may be established. 2.2 -MAINTENANCE OF INDIVIDUALS: Monthly remittance up to the limit equivalent to US$ 1,500.00, for the maintenance of Angolans or foreigners residing abroad, which 2.2.1 -The transfers referred to in the preceding item are carried out upon presentation of a residence certificate every six months and documents proving the family relationship. Article 3 (FINAL PROVISION) This Instruction enters into force immediately. Luanda, on April 1994 THE GOVERNOR GENEROSO HERMENEGILDO GASPAR DE ALMEIDA

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