Bank of Angola Notice No. 02/2010 Establishing the Credit Information and Risk Center

BANK OF ANGOLA

NOTICE NO. 02/2010 of October 20

OFFICE OF THE GOVERNOR

Considering the need to centralize informational elements regarding credit granting and application risk and to provide a functioning system for the Credit Information and Risk Center (CIRC), thereby granting it greater reliability and consequent incentive for its use by Financial Institutions;

Pursuant to the combined provisions of Article 64 of Law No. 13/05, dated September 30, the Financial Institutions Act, and of item f) of paragraph 1 of Article 21 of the Bank of Angola Law;

In exercise of the competence conferred upon me by paragraph 1 of Article 93 of the Bank of Angola Law;

I DETERMINE:

Article 1
(Subject Matter)

The Credit Information and Risk Center (CIRC) service shall have the following objectives:

a) centralize information regarding credit operations, potential liabilities, and their risks under any form or modality granted by Financial Institutions;

b) provide information that assists in the assessment of credit granting risks by Financial Institutions.

Article 2
(Scope)

1. This Notice applies to all Financial Institutions that perform credit functions and are subject to the supervision of the Bank of Angola, namely:

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BANK OF ANGOLA

OFFICE OF THE GOVERNOR

a) Banks; b) Credit cooperatives; c) Financial factoring companies; d) Leasing companies; e) Micro-credit companies; f) Other companies qualified as such by Law.

2. Branches in Angola of Financial Institutions with headquarters abroad are also subject to the scope of this Notice.

Article 3
(Definitions)

1. Credit Information and Risk Center (CIRC) - is a database managed by the Bank of Angola, containing information provided by Financial Institutions regarding credit operations, potential liabilities, and their risks, under any modality, benefiting natural or legal persons, whether resident or non-resident.

2. Participating entities - are the entities referred to in Article 2 of this Notice.

3. Potential Liabilities - for the purposes of this Notice, consist of operations in which a financial institution may eventually be bound to obligations of third parties.

4. Effective Liabilities - are the credit liabilities assumed by any natural or legal person towards participating entities.

5. Credit Risk - is the probability that Financial Institutions may suffer losses, on their own account or for third parties, due to the default by their clients and/or guarantors (sureties and/or endorsers) arising from loan contracts, general credits, discounts, provided guarantees, securities, insurance, other financial intermediation transactions, as well as all other financial instruments permitted by Law.

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BANK OF ANGOLA

OFFICE OF THE GOVERNOR

Article 4
(Place of Operation)

The Credit Information and Risk Center is maintained by the Bank of Angola and operates within its premises.

Article 5
(Covered Operations)

Participating entities must provide the Bank of Angola, under terms established by it, with the required information regarding credit operations, unbacked checks, potential liabilities, and their risks, assumed by any natural or legal person, whether resident or non-resident foreign exchange.

Article 6
(Information Collection)

Financial Institutions must provide the Bank of Angola, via electronic communication, with informational elements to be defined by the Bank of Angola in the CIRC Operating Regulations.

Article 7
(Responsibility for Information)

1. The information contained in the Credit Information and Risk Center is entirely the responsibility of the Financial Institutions that provided it, with these institutions exclusively responsible for any eventual alteration or correction.

2. Information provided by the Bank of Angola must be intended exclusively for the requesting institution, and its total or partial transmission to third parties is prohibited, unless these are legally authorized for that purpose.

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BANK OF ANGOLA

OFFICE OF THE GOVERNOR

Article 8
(Use of Information)

1. Subject to the following paragraph, information referred to in this Notice may not be used for purposes other than those of the CIRC, supervision of the institutions subject to it, or statistical preparation, as a complement to the elements referred to in item f) of Article 21 of the Bank of Angola Law, and its dissemination may not, in any case, be conducted in a manner likely to violate bank secrecy protecting the operations in question.

2. Information contained in the CIRC may be used within the framework of cooperation provided for in Article 62 of Law No. 13/05, dated September 30.

Article 9
(Access to Information)

1. Participating Financial Institutions have access to CIRC information via electronic communication established by the Bank of Angola.

2. Natural and legal persons have free access to their own credit information registered in the Credit Information and Risk Center.

3. The Bank of Angola, through a specific instrument, establishes the conditions and terms for accessing CIRC information.

Article 10
(Confidentiality)

1. Information contained in the Credit Information and Risk Center is subject to the duty of secrecy, under the terms of the Law.

2. Information provided by the CIRC to Financial Institutions must not contain the name of the Financial Institution that granted the credit.

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BANK OF ANGOLA

OFFICE OF THE GOVERNOR

Article 11
(Cost Participation)

The Bank of Angola may fix and charge a reciprocal fee for the information it provides to Financial Institutions.

Article 12
(Infringements)

1. Failure to send updated information constitutes an infringement, and participating institutions are barred from accessing CIRC information.

2. In addition to the sanctions provided for in Article 131, items e) and g), of Law No. 13/05, dated September 30, infringements of the provisions of this Notice, its respective regulations, and other complementary instructions are punishable under civil and criminal laws.

Article 13
(Repealing Clause)

All provisions contrary to this Notice are hereby repealed, notably Notice No. 01/10 of October 4.

Article 14
(Entry into Force)

This Notice enters into force 30 (thirty) days after the date of its publication.

PUBLISH

Luanda, October 20, 2010

THE GOVERNOR

(Signature)
JOSÉ DE LIMA MASSANO