Instruction No. 23/2021, of October 29 – Foreign Exchange Policy: Purchase and Sale of Foreign Currency on the Bloomberg FXGO Platform by Aviation and Insurance Companies

INSTRUCTION NO. 23/2021 of October 29 SUBJECT: FOREIGN EXCHANGE POLICY

• Purchase and Sale of Foreign Currency on the Bloomberg FXGO Platform by Companies in the Aviation and Insurance Sectors With the aim of increasing the efficiency of the Foreign Exchange Market, the Central Bank of Angola has decided to expand the base of entities that trade the purchase and sale of foreign currency with Commercial Banks through the Bloomberg FXGO trading platform. To this end, it has been decided to grant access to trading on the aforementioned platform to airlines and insurance companies that meet certain requirements. Pursuant to Article 39 of Law No. 24/21, dated October 18, the Central Bank of Angola Law, and in exercise of the competence conferred upon me by Article 54 of said Law. I HEREBY DETERMINE:

1. Subject Matter and Scope 1.1. This Instruction establishes: a) The conditions for access to the Bloomberg FXGO platform, hereinafter referred to as “FXGO”, by Airlines and Insurance Companies; b) The rules and procedures that they must observe in trading foreign currency purchase and sale operations through the aforementioned platform.

1.2. This Instruction covers Commercial Banks and the Airlines and Insurance Companies referred to in paragraph 2 of this Instruction. 2. Access to FXGO 2.1. The following entities, hereinafter designated as “Companies”, may request authorization from the Central Bank of Angola to trade foreign currency through FXGO: a) Commercial Airlines, authorized to operate in the country, with a permanent establishment established under the Angolan Companies Law, organized accounting, and a responsible certified public accountant; b) Insurance Sector Companies, supervised by the Angolan Regulation and Supervision Agency for Insurance (ARSEG). 2.2. Companies seeking to trade foreign currency through FXGO must request authorization from the Central Bank of Angola through the Commercial Bank with which they maintain their main business relationship. 2.3. The request must be accompanied by: a) A statement regarding the purposes of the foreign exchange operations that the Company usually carries out; b) A declaration signed by the financial administrator confirming: i) Their detailed knowledge of the foreign exchange regulations applicable to operations with abroad; and ii) Their personal responsibility to ensure full compliance therewith. 2.4. Commercial Banks must forward their clients' requests to the Asset Markets Department (DMA) via email at dma@bna.ao within 3 business days, and their communication must: a) Identify the requesting Company; b) Confirm that the account opening process is complete and updated, and that the Bank adequately knows its client and its operations; c) Inform whether the client has a record of non-compliance with foreign exchange regulations at the Bank; d) Attach a copy of the client's request and supporting documents as provided in subpoint 2.3 of this paragraph. 2.5. The Central Bank of Angola evaluates each Company's request and communicates its decision to the Commercial Bank within 10 business days of receiving the request or any additional elements subsequently requested, necessary to complete its evaluation. 2.6. After authorization by the Central Bank of Angola, Companies covered by this Instruction must enter into a subscription contract with Bloomberg for the acquisition of an FXGO trading terminal. 3. Purpose of Foreign Exchange Operations Companies may only trade foreign exchange operations that comply with foreign exchange regulations, are strictly linked to their business and in their own name, namely for the payment of their foreign suppliers of goods and services, or for the transfer of capital income to the parent company or its shareholders, and at the time of trading foreign currency purchases, there must be an effective payment liability. 4. Trading on FXGO 4.1. Companies trading foreign exchange operations through FXGO may only: a) Buy and sell foreign currency to Commercial Banks or the Central Bank of Angola; b) Trade operations with a value greater than the equivalent of USD 50,000.00, with lower-value operations to be traded directly with their Commercial Banks. 4.2. Companies are exempt from presenting supporting documents for foreign currency purchase operations traded through FXGO, but must promptly respond to requests made by Commercial Banks as provided in the following subpoint. 5. Procedures for Trading on FXGO 5.1. The purchase and sale of foreign currency trading on FXGO is carried out using RFQ (Request for Quote) or STA (Single Tenor Auction) commands. 5.2. In negotiations, Companies must, on FXGO: a) Indicate the currency and value they intend to purchase, as well as the value date; b) Select the Commercial Banks from which they wish to obtain quotes, regardless of whether they have accounts open at those banks or not, and must necessarily include the Central Bank of Angola in their selection via the dealing code BBNA. 6. Settlement Procedures for Operations Traded on FXGO 6.1. Once the selling Commercial Bank is selected, Companies must input information regarding their bank accounts to be debited and credited. 6.2. Debits and credits must always be made in accounts held by the Company that traded the operation, at banks domiciled in Angola. 6.3. If the Company does not hold a bank account at the selling Commercial Bank, it must, immediately after confirming the operation on FXGO, instruct its bank to transfer the amount due by it to the selling Commercial Bank, with the value date agreed upon in the operation. 7. Deadlines for Execution of Operations Abroad 7.1. Companies must, within a maximum of 7 business days from the value date of a foreign currency purchase operation, proceed to transfer the acquired currency abroad as payment for the liability for which it was acquired. 7.2. Any foreign currency value not transferred within the period referred to in the preceding subpoint must be sold to Commercial Banks. 8. Responsibilities of Commercial Banks Commercial Banks, as intermediaries in foreign exchange operations, must ensure the existence of procedures that guarantee compliance with legislation and regulations, namely: a) Prevention and combating of money laundering and terrorist financing; b) Foreign exchange compliance, in the case of banks that execute transfers abroad as payment for their clients' liabilities. 9. Record Keeping Companies must maintain a properly organized archive with all supporting documentation of operations traded through FXGO for 10 years. 10. Inspections by the Central Bank of Angola to Companies The Central Bank of Angola may at any time conduct inspections to Companies in order to verify compliance with the provisions of this Instruction. 11. Non-Compliance 11.1. The Central Bank of Angola determines the penalties to be applied in case of non-compliance with this Instruction, depending on its severity. 11.2. The penalties to be applied to Companies include the temporary or permanent prohibition of trading foreign currency operations on FXGO or even in the foreign exchange market. 12. Doubts and Omissions Doubts and omissions resulting from the interpretation and application of this Instruction are resolved by the Central Bank of Angola. 13. Entry into Force This Instruction enters into force the day following its publication. PUBLISH. Luanda, October 29, 2021. THE GOVERNOR JOSÉ DE LIMA MASSANO