Notice No. 15/2022 of September 2 – Establishes Rules Applicable to Non-Bank Acquirers and Subacquirers

PUBLISHED IN THE OFFICIAL GAZETTE, 1ST SERIES, NO. 167, OF SEPTEMBER 2, 2022 NOTICE NO. 15/2022 SUBJECT: PAYMENT SYSTEM – Non-Bank Acquirer and Subacquirer

Whereas it is necessary to establish rules and procedures for the operation of Non-Bank Acquirers and Subacquirers, aiming to strengthen and provide adequate mechanisms to facilitate access to financial products and services for the population nationwide and contribute to increasing financial inclusion levels; In accordance with Article 6 of Law No. 40/20, dated December 16, 2020 (Angola Payment System Law), and Article 36 of Law No. 14/21, dated May 19, 2021 (General Regime of Financial Institutions Law), combined with Article 21 of Law No. 24/21, dated October 18, 2021 (Banco Nacional de Angola Law).

I HEREBY DETERMINE:

CHAPTER I GENERAL PROVISIONS

Article 1. (Subject Matter) This Notice establishes the rules applicable to entities exercising the activities of Non-Bank Acquirer and Subacquirer.

Article 2. (Scope) This Notice applies to entities exercising the activities of Non-Bank Acquirer and Subacquirer for payment cards, authorized under the Angola Payment System Law.

Article 3. (Definitions) For the purposes of this Notice, the following terms are understood as: a) Acceptor – entity that accepts payment for goods and/or services with a payment card and maintains a contract with an acquirer to perform this service; b) Non-Bank Acquirer – Payment Service Provider that acquires credits from merchants accepting credit and debit cards, to which merchants transmit transaction data; c) Payment Arrangement – unique set of rules, practices, standards or guidelines, oriented towards the execution of payment operations; distinct from payment systems but serving as their operational basis and including any decision-making body, organization or entity responsible for its operation; d) Automated Teller Machine (ATM) – electromechanical equipment allowing holders of payment cards with magnetic stripe and/or chip to access services provided to these cards, namely withdrawing cash, checking account balances and statements, and transferring funds, among other services; e) Independent ATM – ATM that is not owned by a Banking Financial Institution; f) Payment Card – payment instrument, presented in the form of a plastic card or other payment device or code, issued by a Financial Institution (the issuer), to enable its user to carry out financial transactions, namely payments and/or cash withdrawals, at terminals where it is accepted; g) Multicaarta Card – card issued in accordance with the rules of the Multicaixa Payment Arrangement and accepted at all terminals of the Multicaixa system; h) Merchant – any legal entity meeting the conditions to be an Acceptor of cards; i) Float Account – support account for payment acquisition services, domiciled at a Banking Financial Institution, for fund movements, resulting from the calculation of transactions carried out on Automatic Payment Terminals with the accounting period open at the time of interbank clearing; j) Payment Service Provider – Financial Institution or legally authorized entity by the Banco Nacional de Angola, under the Payment System Law, to provide payment services; k) Technical Service Providers – entities supporting the provision of payment services without ever holding the funds to be transferred, including processing and data storage, trust and privacy protection services, data and entity authentication, provision of information and communication technology networks, and provision and maintenance of terminals and devices used for payment services, excluding payment initiation services and account information services; l) Multicaixa Network – national and universal network of terminals for cash withdrawal, payment and/or related operations; m) Subacquirer – entity geared towards intermediating payment operations between the merchant and the acquirer; n) Multicaixa System (MCX) – Payment system processing operations carried out with valid cards at service points of the Multicaixa network, with deferred time settlement of the multilateral clearing balance of these operations; and o) Automatic Payment Terminal (APT) – electromechanical equipment or software application allowing authorized users, cardholders that it can validate, to make payments at points of sale for goods or services, also enabling other card-related services.

CHAPTER II NON-BANK ACQUIRERS

Article 4. (Non-Bank Acquirer) Under this Notice, the Non-Bank Acquirer may be of Automatic Payment Terminal (APT) or Automated Teller Machine (ATM).

Article 5. (Eligible Institutions) Only payment service companies authorized by the Banco Nacional de Angola, under the Payment System Law, may exercise the activities of Non-Bank Acquirer for APT and ATM.

Article 6. (Participation in the Payment Arrangement) Under this Notice, the Non-Bank Acquirer must: a) Participate in the Multicaixa Payment Arrangement; b) Implement rules regarding the Payment Arrangement it belongs to, to mitigate risks associated with its activity and protect the end consumer; and c) Be certified by the entity responsible for the Payment Arrangement.

Article 7. (Oversight and Supervision) The Non-Bank Acquirer must create technical and operational conditions so that Oversight and Supervision have timely access to information related to operations performed and all supporting elements of the Subacquirer's activity.

Article 8. (Risk Management)

1. Under this Notice, the Non-Bank Acquirer must: a) Implement policies including minimum standards established in the Multicaixa Payment Arrangement to mitigate risk in the Payment System; b) Maintain adequate risk controls and monitor the Acceptor's activity to ensure rule compliance, thereby avoiding undue harm to its activity and the end consumer; and c) Perform continuous control and Supervision of the Subacquirer to ensure compliance with requirements for exercising its activity, where applicable.
2. Whenever the Non-Bank Acquirer becomes aware of any fraud or forgery committed by a specific Acceptor in transactions carried out via payment cards, it must immediately: a) Terminate the contract with the relevant Acceptor; b) Communicate the fraud and identification of the relevant Acceptor, in the manner and within the timeframe defined by specific regulation.
3. Under the preceding paragraph, the Non-Bank Acquirer is prohibited from entering into a contract with an Acceptor that has recorded an incident.
4. The Non-Bank Acquirer must not acquire payment operations from Acceptors that are not authorized to exercise a commercial activity.

Article 9. (Due Diligence)

1. The Non-Bank Acquirer must conduct due diligence on the Acceptor's history, including the existence of bounced checks for lack of funds, credit status, personal and corporate financial statements, and tax declarations, to ascertain the existence of fraud.
2. In identifying counterparties, the Non-Bank Acquirer must adopt principles defined in regulation on combating money laundering, terrorist financing and proliferation of weapons of mass destruction, consistent with fraud prevention objectives.

Article 10. (Information Confidentiality)

1. Non-Bank Acquirers must demonstrate information compliance with all applicable guarantees and standards to ensure security for Acceptors, Subacquirers and other third parties regarding the confidentiality of payment card data.
2. Under this article, they must also comply with regulatory requirements, information confidentiality, report production, profile creation and management, periodic assessment and reporting of additional information, and must likewise develop and apply appropriate policies, procedures and processes for risk management and mitigation.

SECTION I Non-Bank Acquirer of APT

Article 11. (Permitted Activities)

1. The Non-Bank Acquirer of APT is permitted, under this Notice, to carry out the following activities: a) Contracting with the Acceptor regarding payment card acceptance conditions; b) Acquisition of APTs from Technical Service Providers; c) Recruitment and management of Acceptors; d) Provision, maintenance and installation of physical or virtual APT; e) Acquisition of payment operations; f) Cash dispensation; g) Management of funds corresponding to daily transactions carried out with the cards it represents and their respective credit in Acceptors' bank accounts; h) Provision of intermediary services between Acceptors and issuers through service provision, namely: i) Payment processing; ii) Interbank clearing; and iii) Dispute management. i) Support to Acceptors, namely customer service and training; and j) Other activities authorized by the Banco Nacional de Angola.
2. The Non-Bank Acquirer must be the creditor of transactions carried out with the payment cards it represents before the Payment Arrangement.

Article 12. (Specific Conditions of the Acceptance Contract)

1. The relationship between the Non-Bank Acquirer and Acceptors must be governed by a written contract.
2. The acceptance contract must include the General Terms of Use, which are more stable, and an annex containing conditions subject to frequent modification.
3. The contract must be drafted in Portuguese, easily understood and have a graphical presentation allowing reading by a person with average visual acuity.
4. Clauses defining charges or interest rates merely by reference to the price list existing at counters or other locations/supports are prohibited.
5. The price list must be presented in national currency.
6. The contract must establish: a) That the Acceptor may directly submit well-founded complaints to the Banco Nacional de Angola regarding non-compliance with applicable legislation and regulation by the Non-Bank Acquirer; b) The service levels to which the acquirer is committed regarding APT repair and/or replacement; c) The situations in which the parties may terminate the contract and its effects.
7. An acceptance contract for one card brand must not prevent the acceptance of cards from another brand.
8. Without prejudice to other prevailing norms, all rights and obligations of the contracting parties must be established in the contract with the Acceptor through general contractual clauses, namely that: a) Acceptors must not refuse card payments; b) Obligations regarding the finalization of payment to the Acceptor are the responsibility of the Non-Bank Acquirer; c) The Acceptor must not be held liable for fraudulent transactions, provided it has complied with the card acceptance rules timely communicated by the Non-Bank Acquirer; d) If applicable, the Acceptor is obliged to confirm cardholder identification whenever the payment exceeds a determined amount and under terms defined by the Payment Arrangement; e) Credit for payment acquisition operations by the Acceptor must be made into a bank account designated for this purpose; f) In case of dispute regarding an electronic transaction, the burden of proof lies with the Non-Bank Acquirer, who is obliged to provide its best cooperation, namely by supplying requested information and providing copies of documents regarding the transaction in question; g) The Non-Bank Acquirer may not alter contractual conditions without notifying the Acceptor, with a minimum advance notice of 45 (forty-five) days, leaving the latter with the right to terminate the contract due to disagreement with the introduced alterations; h) The use of an Acceptor's terminal after the effective date of the contractually informed alterations constitutes a presumption of acceptance of those alterations; and i) Responsibilities incumbent on each contracting party regarding deficient transmission, non-reception or deficient reception by the Non-Bank Acquirer or the Multicaixa System operator shall be indicated.
9. Contractual acceptance conditions must provide complete, clear and updated information on rules for correct and secure card acceptance and terminal use, including information on: a) Operations that may be performed; b) Identification of cards and respective holders; c) Operation and security principles; d) Charges resulting from possession and/or use of APTs.
10. Without prejudice to the preceding paragraphs, the acceptance contract must be cancelled if the APT remains inactive for an uninterrupted period equal to or greater than 6 (six) months.
11. The Non-Bank Acquirer must inform the Banco Nacional de Angola whenever it terminates a contract with an Acceptor.
12. The Non-Bank Acquirer is obliged to submit draft contracts it intends to conclude with Acceptors to the Payment Systems Department of the Banco Nacional de Angola.
13. Within this article, the Non-Bank Acquirer must observe complementary rules established in the Directive on APT Acceptance Contract.

Article 13. (Acceptor Deposit Account)

1. Acceptor deposit accounts must be domiciled at a Banking Financial Institution.
2. The Non-Bank Acquirer must not condition the provision of payment acquisition services to the deposit account being domiciled at a specific Banking Financial Institution.
3. The Non-Bank Acquirer must maintain adequate controls to ensure the transfer of bank accounts where funds will be deposited.

Article 14. (Interbank Clearing)

1. The Non-Bank Acquirer must maintain commercial agreements with a Banking Financial Institution to represent it in interbank clearing.
2. A Banking Financial Institution must not refuse representation of a Non-Bank Acquirer in interbank clearing.
3. The draft contract for representation in interbank clearing between the Banking Financial Institution and the Non-Bank Acquirer must be approved by the Banco Nacional de Angola.
4. The clearing agent must ensure clearing independently of any contractual liability limits established with the Non-Bank Acquirer.
5. The Non-Bank Acquirer must hold a float account with the Banking Financial Institution representing it in interbank clearing, which must remain funded with sufficient funds to finalize payment operations performed at Acceptors.

SECTION II NON-BANK ACQUIRER OF ATM

Article 15. (Non-Bank Acquirer of ATM) The Non-Bank Acquirer of an ATM is considered as a Provider of Independent ATM Services.

Article 16. (Permitted Activities) The Provider of Independent ATM Services is permitted, under this Notice, to carry out the following activities: a) Acquisition of certified brand/model Terminals from the Network Management Entity; b) Installation, management and maintenance of ATMs. c) Banknote loading; d) Acquisition of payment operations, including card management operations; e) Cash dispensation; and f) Complaint management.

Article 17. (Cash Supply in ATMs)

1. Funds for supplying Independent ATMs belong to the Banking Financial Institution representing the Provider of Independent ATM Services in clearing.
2. For the purposes of the preceding paragraph, cash withdrawal must be carried out by the Provider of Independent ATM Services as follows: a) At the Strongrooms of the Banco Nacional de Angola upon authorization by the Banking Financial Institution representing it in interbank clearing, in accordance with operational rules of the Instruction on Deposit and Banknote Withdrawal Operations of the Kwanza; or b) At agencies of the Banking Financial Institution representing it in interbank clearing, under terms agreed between the parties.
3. The draft contract for cash supply concluded between the Provider of Independent ATM Services and the Banking Financial Institution representing it in interbank clearing must be approved by the Banco Nacional de Angola.

Article 18. (Interbank Clearing) The provisions of paragraphs 1 to 4 of Article 14 of this Notice apply to the Provider of Independent ATM Services.

CHAPTER III SPECIFIC RULES OF THE SUBACQUIRER

Article 19. (Exercise of Activity)

1. The activity of Subacquirer may be exercised by Banking or Payment Agents under the Notice on Expansion of Financial Services.
2. Subacquirers provide services on behalf of a Financial Institution, under terms previously agreed between the parties, with the Subacquirer being responsible for all acts for which it has been contracted.
3. The contracting Institution must guarantee the integrity, reliability, security and confidentiality of transactions carried out through the contractor, as well as compliance with prevailing legislation.

Article 20. (Authorized Activities) Upon conclusion of a contract, the Subacquirer may, in the name of the contracting institution, carry out the following activities: a) Recruitment of Acceptors; b) Reception and forwarding of acceptance contract proposals received in the name of the contracting Institution; c) Maintenance and installation of physical APT; d) Support to Acceptors, namely complaint handling and training; and e) Other activities authorized by the Banco Nacional de Angola.

Article 21. (Complaints) Customer service and complaint processing for Acceptors must comply with regulation on consumer protection of financial products and services in Angola.

CHAPTER IV TRANSITIONAL AND FINAL PROVISIONS

Article 22. (Transitional Provisions) The Multicaixa System operator must conform the Multicaixa Payment Arrangement and adapt its technological infrastructure, within a maximum period of 180 (one hundred and eighty) days from the date of its entry into force.

Article 23. (Sanctions) Non-compliance with the mandatory norms established in this Notice constitutes an infraction punishable under Law No. 40/20, dated December 16, 2020 (Angola Payment System Law) and Law No. 14/21, dated May 19, 2021 (General Regime of Financial Institutions Law).

Article 24. (Doubts and Omissions) Doubts and omissions resulting from the interpretation and application of this Notice are resolved by the Banco Nacional de Angola.

Article 25. (Entry into Force) This Notice enters into force on the date of its publication.

PUBLISH. Luanda, August 25, 2022. THE GOVERNOR JOSÉ DE LIMA MASSANO