Notice No. 2/2022 of February 2

PUBLISHED IN THE OFFICIAL GAZETTE, 1ST SERIES, NO. 22, OF FEBRUARY 2, 2022 NOTICE NO. 02/2022 SUBJECT: ANGOLA PAYMENT SYSTEM

• Provision of Payment Services

Whereas it is necessary to align the regulatory framework for the provision of payment services, in order to create favorable conditions for the emergence of new initiatives and payment solutions that aim to provide a broad range of fast, accessible, and low-cost payment services, guaranteeing security and transparency for users, while simultaneously reducing risks to the Angola Payment System; In accordance with the combined provisions of Article 6 of Law No. 40/20, dated December 16, the Angola Payment System Law, and paragraph f) of paragraph 1 of Article 54 of Law No. 24/21, dated October 18, the Bank of Angola Law; IT IS DETERMINED:

CHAPTER I General Provisions

Article 1. (Subject Matter) This Notice establishes the rules regarding access to the activity of Provision of Payment Services, under the supervision of the Bank of Angola, within the framework of the Angola Payment System.

Article 2. (Scope)

CONTINUATION OF NOTICE NO. 02/2022 Page 2 of 33 This Notice applies to Payment Service Companies and third parties to whom operational services are subcontracted, as well as to the provision of payment services by legally authorized Institutions.

Article 3. (Definitions) Without prejudice to the definitions established in the Angola Payment System Law, within the scope of this Notice, it is understood that: a) Acceptance of Payment Operations: payment service provided by a Payment Service Provider bound by contract to a beneficiary to accept and process payment operations, which give rise to a transfer of funds to the beneficiary; b) Acquirer: Institution that contracts with an acceptor, the consent to make payments with a payment instrument and acquires from it the credits arising from payments; c) Beneficiary: natural or legal person to whom the funds resulting from a payment operation are destined; d) Cash in: conversion of currency into electronic money; e) Cash out: conversion of electronic money into currency; f) Fiduciary Account: bank account opened and held by a payment service provider, exclusively intended for the refund of funds resulting from electronic money operations; g) Payment Account: account held in the name of a payment service user, used to execute payment operations; h) Prepaid Payment Account: account held by a payment service user, for executing electronic money payment operations with the prior deposit of funds expressed in Kwanzas; i) Postpaid Payment Account: account held by a payment service user, without prior deposit of funds, for executing payment operations with subsequent payment; j) Master Contract: payment service contract governing the future execution of individual and successive payment operations, which may state the obligations and conditions for opening a payment or bank account; k) Electronic Money Issuers: Payment Service Providers authorized to issue electronic money; l) Issuance of Payment Instruments: payment service provided by a payment service provider bound by contract to supply a payment instrument to an ordering party in order to initiate and process the ordering party's payment operations; m) Payment Instrument: personalized device or set of procedures, agreed between the payment service user and the payment service provider, used to initiate a payment order; n) Unique Identifier: combination of letters, numbers, or symbols, specified to the payment service user by the payment service provider, provided by the payment service user to unequivocally identify another payment service user or their respective payment account for the purpose of carrying out a payment operation; o) Electronic Money: monetary value denominated in a fiduciary currency, stored electronically, including magnetically, represented by a claim on the issuer and issued after receipt of funds for the purpose of executing payment operations, and which is accepted by a person other than the electronic money issuer; p) Payment Operation or Payment: act, initiated by the ordering party or on their behalf, or by the beneficiary, to deposit, transfer, or withdraw funds, regardless of any underlying obligations between the ordering party and the beneficiary; q) Payment Order: instruction given by an ordering party or a beneficiary to their payment service provider requesting the execution of a payment operation; r) Payment Service Provider: Financial Institution or legally authorized entity under the Angola Payment System Law to provide payment services; s) Account Information Service Provider: payment service provider that performs the activities referred to in paragraph i) of Article 4 of this Notice; t) Payment Initiation Service Provider: payment service provider that performs the commercial activities referred to in paragraph h) of Article 4 of this Notice; u) Payment Service Provider that Manages the Account: payment service provider that makes and maintains payment accounts available for an ordering party; v) Electronic Money Holder: payment service user who holds electronic money issued by an electronic money issuer; w) Account Information Service: online service for providing consolidated information on one or more payment accounts held by the payment service user with another or other Payment Service Providers; x) Payment Initiation Service: service that initiates a payment order at the request of the payment service user regarding a payment account held with another payment service provider; y) Payment Services: economic activity developed by Payment Service Providers in accordance with Article 4 of this Notice; z) Payment Service Company: Non-Bank Financial Institution authorized by the Bank of Angola, whose object is the provision and execution of payment services, in accordance with the Angola Payment System Law and applicable complementary legislation; aa) Sub-acquirer: company dedicated to intermediating payment operations between the merchant and the acquirer, with the function of transmitting transaction data to the acquirer and/or settling amounts with merchants; and bb) Payment Service User or User: natural or legal person that uses a payment service as an ordering party or beneficiary.

CHAPTER II Payment Service Providers

SECTION I General Conditions of Activity

Article 4. (Payment Services)

1. The following activities constitute payment services: a) Services that allow depositing cash into a payment account, as well as all operations for managing that account; b) Services that allow withdrawing cash from a payment account, as well as all operations necessary for managing that account; c) Execution of payment operations, including transfers of funds deposited in a payment account opened with the user's Payment Service Provider or another Payment Service Provider: i. Execution of direct debits, including those of a punctual nature; ii. Execution of payment operations through a payment card or similar device; and iii. Execution of credit transfers. d) Execution of payment operations in which funds are covered by a credit line granted to a payment service user, including: i. Execution of direct debits, including those of a punctual nature; ii. Execution of payment operations through a payment card or similar device; and iii. Execution of credit transfers.

CONTINUATION OF NOTICE NO. 02/2022 Page 6 of 33 e) Issuance of payment instruments and/or acquisition of payment operations; f) Issuance of electronic money and electronic money instruments; g) Remittance of funds; h) Payment initiation services; i) Account information services; j) Sub-acquirer services; and k) Other services and operations not prohibited by law or by the Bank of Angola.

2. Any alteration to the services provided, notably regarding their functionalities or commercial brands, requires prior authorization from the Bank of Angola.

3. The following operations are exempt from the provisions of paragraph 1 of this article: a) Payment operations carried out exclusively in cash directly from the ordering party to the beneficiary without any intermediary; b) Payment operations by the ordering party to the beneficiary through a commercial agent authorized by contract to negotiate or conclude the sale or purchase of goods or services exclusively in the name of the ordering party or beneficiary; c) Professional physical transport of funds, including their collection, processing, and delivery; d) Payment operations consisting in the non-professional collection and delivery of cash, within a charitable or non-profit activity; e) Services in which the beneficiary provides cash to the ordering party as part of a payment operation, following an express request by the payment service user immediately before executing the payment operation through a payment intended for acquiring goods or services; f) Foreign exchange operations of cash against cash, provided the funds are not held in a payment account; g) Payment operations based on any of the following documents drawn on a payment service provider, in order to make funds available to the beneficiary: i. Paper checks governed by the Geneva Convention, which establishes the Uniform Law relating to Bills of Exchange and Promissory Notes; ii. Paper checks governed by the Geneva Convention approving the Uniform Law relating to Cheques; iii. Paper vouchers; iv. Paper traveler's checks; and v. Postal money orders in paper form, as defined by the Universal Postal Union. h) Payment operations carried out within a payment or securities settlement system between clearing agents, central counterparties, clearing houses and/or the Bank of Angola and other participants on one hand, and Payment Service Providers on the other, without prejudice to rules regarding access to payment systems; i) Payment operations related to securities-linked services, including the distribution of dividends and income or other distributions, or the refund or sale of securities carried out by persons referred to in paragraph h) or by investment companies, bank financial institutions, collective investment schemes, securities distribution companies, or asset management companies providing investment services and any other entities authorized to hold financial instruments; j) Services provided by technical service providers, which support the provision of payment services without ever taking possession of the funds to be transferred, including processing and data storage, trust and privacy protection services, authentication of data and entities, provision of information and communication technology networks, and provision and maintenance of terminals and devices used for payment services, with the exception of payment initiation services and account information services; k) Services based on specific payment instruments that can only be used in a limited manner and are: i. Instruments that only allow the acquisition of goods or services by their holder at the issuer's premises or in a restricted network of payment service providers directly linked to a professional issuer by a commercial agreement; ii. Instruments that can only be used to acquire a very restricted range of goods or services, or iii. Instruments valid only in Angola, provided at the request of a company or public sector entity and regulated by a public authority for specific social or fiscal purposes to acquire goods or services from suppliers linked by a commercial agreement to the issuer. l) Payment operations by an electronic communications network or service provider supplied to a subscriber of the network or service: i. For acquiring digital content and voice services, regardless of the device used for acquiring or consuming the digital content, and charged on the corresponding invoice, or executed from or through an electronic device and charged on the corresponding invoice, within a charitable activity or for acquiring tickets, provided that the value of each payment operation referred to in sub-paragraphs i) and ii) does not exceed the amount determined by the Bank of Angola and that the accumulated value of payment operations for a subscriber does not exceed the monthly value established by the Bank of Angola; or ii. If a subscriber pre-finances their account with the electronic communications network or service provider, the accumulated value of payment operations does not exceed the value established in the preceding paragraph. m) Payment operations carried out between Payment Service Providers and their agents or branches on their own behalf; and n) Payment operations and related services between a parent company and its subsidiaries, or between subsidiaries of the same parent company, without any intermediary payment service provider that is not a member of the same group.

Article 5. (Exclusivity Principle)

1. The activity of providing payment services may only be exercised by the following institutions: a) Bank Financial Institutions with headquarters in Angola whose object includes exercising the activity of providing payment services, in accordance with applicable legal and regulatory standards; b) Non-Bank Financial Institutions with headquarters in Angola, whose object includes exercising that activity, in accordance with applicable legal and regulatory standards; c) Branches and subsidiaries of Bank Financial Institutions and Non-Bank Financial Institutions with headquarters abroad; d) The postal service provider entity and others authorized by the Ministerial Department responsible for Telecommunications, Information Technology, and Social Media; e) The State, Provincial Governments, municipalities, communes, and local authorities, the direct and indirect administration services and bodies of the State, when not acting in the capacity of public authorities; f) The Bank of Angola, when not acting in the capacity of monetary authority or in the exercise of public authority powers; and g) Natural or legal person benefiting from an exemption under the Payment System Law.

2. The Institutions referred to in paragraph c) of the preceding paragraph may only provide payment services that they are authorized to provide in their country of origin.

3. The use of the expressions “Payment Service Provider” and “Electronic Money Issuer” is exclusively reserved for Payment Service Companies, which may include them in their firm name or denomination or use them in the exercise of their activity.

4. The Bank of Angola may authorize entities that are not Payment Service Providers to exercise the activities provided for in paragraph f) of Article 4 of this Notice.

5. The entities authorized under the preceding paragraph may adopt the designation of electronic money institutions and are subject to the provisions of the Angola Payment System Law and this Notice, with necessary adaptations.

Article 6. (Payment Service Companies)

1. Payment Service Companies may exercise the following activities: a) Provision of operational services and closely related complementary services, such as guarantees for the execution of payment operations, foreign exchange operations, custody activities, storage and data processing; and b) Operation of payment systems, without prejudice to the provisions in Chapter IV of the Payment System Law.

2. Whenever Payment Service Companies provide one or more services, they may only hold payment accounts that are exclusively used for payment operations.

3. The funds that Payment Service Companies receive from payment service users do not constitute deposits, as provided in paragraph 12 of Article 3 of Law No. 14/21, dated May 19, the General Regime of Financial Institutions Law.

4. The funds received by Payment Service Companies and originating from electronic money holders must be exchanged without delay for electronic money and do not constitute deposits, as provided in paragraph 12 of Article 3 of Law No. 14/21, dated May 19, the General Regime of Financial Institutions Law.

5. Payment Service Companies may grant credit regarding the payment services referred to in Article 4 of this Notice, as provided in Article 7 of this Notice.

6. Payment Service Companies may not exercise the activity of accepting deposits or other refundable funds, as provided in paragraph 12 of Article 3 of Law No. 14/21, dated May 19, the General Regime of Financial Institutions Law.

Article 7. (Credit Granting)

1. Payment Service Companies may only grant credit, namely: a) Through the opening of credit lines; and b) Issuance of credit cards.

2. For the purposes of the preceding paragraph, credit must be granted exclusively within the framework of providing payment services.

3. Credit granted in the exercise of the activity of providing payment services must be repaid within a period of 12 months.

4. Without prejudice to the preceding paragraph, the repayment period may be exceeded whenever credit is granted via a credit card.

5. Credit must be granted through the own funds of Payment Service Companies.

6. The Payment Service Company must at all times have adequate own funds in relation to the volume of credit granted, in accordance with current regulations.

7. Payment Service Companies that grant credit under this Notice must report to the Credit Risk Information Center, managed by the Bank of Angola.

SECTION II Payment Accounts

Article 8. (General Principles)

1. Payment Service Providers, electronic money issuers, or other postpaid payment instrument issuers must use a payment account.

2. The payment account used by Payment Service Providers must be held by the user, exclusively for carrying out and recording payment operations.

3. Payment Service Providers must not: a) Identify the account holder by abbreviated name; b) Require the account holder to provide additional documents beyond those defined in this Notice, except when fulfilling legal or regulatory obligations, or internal provider policies that align with these obligations; and c) Condition the opening of payment accounts on acquiring additional products or services.

4. Information provided by users is confidential and must not be used for other purposes or disclosed to third parties without prior authorization, unless otherwise stipulated by law or regulation.

Article 9. (Types of Payment Accounts)

1. Payment Accounts may be prepaid or postpaid.

2. The Bank of Angola defines, in specific regulation, the typology of payment accounts to be used within the provision of payment services.

3. For the purposes of the preceding paragraph, payment accounts are subject to maximum daily, monthly, and balance limits, to be defined in specific regulation.

Article 10. (User Identification)

1. Payment Service Providers must proceed to identify their customers taking into account the type of payment account, as provided in this Notice.

2. Without prejudice to the preceding paragraph, minors under 18 years of age may hold a payment account, provided they are authorized by their legal representatives.

Article 11. (Account Opening Procedures)

1. For the purposes of opening a payment account, Payment Service Providers must adopt procedures and controls that allow verifying and validating the accepted identification means and customer due diligence for different payment accounts.

2. For the purposes of the preceding paragraph, the authenticity of identification means must be verified through the database of the responsible Ministerial Department and the General Tax Administration (AGT).

3. Payment Service Providers must keep up-to-date the information of the payment account holder.

4. The opening of a payment account may be carried out based on a request submitted by the account holder through electronic means or any customer service channel provided by the institution for this purpose, except the voice telephony channel.

5. Payment Service Providers must provide information to the payment account holder through the same channel used for opening the account.

Article 12. (Refusal of Payment Account Opening)

1. Justified grounds for refusing the opening of payment accounts exist whenever the applicant: a) Holds a payment account of the same typology with the same Payment Service Provider; b)