Regulatory Alerts2023-04-06
Letter – Circular No. 04/2023
The Central Bank of Angola has updated regulations for bank accounts held by minors, permitting the issuance of debit cards from age 14 with daily transaction limits agreed upon by legal representatives. These cards must be issued directly in the minor's name, and minors reaching 18 years of age are required to contact their commercial banks to formally update their account status, after which legal representatives lose operational authority. Any ambiguities regarding these provisions will be resolved by the Central Bank, and the circular takes effect upon publication.
Letter – Circular No. 04/2023 SUBJECT: FINANCIAL SYSTEM
- Movement of Bank Accounts Held by Minors
Whereas the Central Bank of Angola has as one of its objectives to promote education and financial inclusion, and consequently, increase the population's financial literacy levels; With special attention to the important role of financial education for minors in increasing the population's financial literacy, and that holding a bank account helps teach minors from an early age, in a secure manner, to manage their money and save, providing them with the knowledge to become more conscious and responsible consumers of financial products and services in the future, as well as the growing importance of financial skills in developing an inclusive and sustainable economy and society; Pursuant to Article 9 of Notice No. 1/2023, dated January 30, regarding the rules for opening, operating, and closing bank accounts, the Central Bank of Angola has updated the rules applicable to accounts held by minors, establishing the possibility of issuing a debit card to minor account holders from the age of 14 (fourteen), provided it is requested by their legal representative, with debit transactions using the card limited to maximum daily amounts agreed upon between the Banking Financial Institution and said legal representative at the time of card request; In this regard, aiming for the correct interpretation of Article 9 of said Notice, this Circular Letter serves to clarify the following: a) Debit cards issued on accounts held by minors who have completed 14 years or more must be issued in the name of the account holder, that is, in the name of the minor, and not in the name of the legal representative.
CONTINUATION OF CIRCULAR LETTER NO. 04/2022 page 2 of 2 b) From the date the minor turns 18 years old: i. The minor must contact their commercial bank to update the account opening process; ii. The legal representative will no longer be able to operate the account; iii. The "former minor" may continue to operate the account, maintaining the limitations arising from their status as a minor, until the update of the account opening process, at which point said limitations cease to apply.
Any questions arising from the above will be clarified by the Central Bank of Angola. This Circular Letter enters into force on the date of its publication. Luanda, April 06, 2023. FINANCIAL INCLUSION DEPARTMENT Teresa Nainde Evaristo Pascoal -Director-