Notice No. 10/2019 of November 6, 2019

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PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 131, OF NOVEMBER 6, 2019 NOTICE NO. 10/2019 SUBJECT: FOREIGN EXCHANGE POLICY

• Procedures for Carrying Out Foreign Exchange Operations by Individuals

Given the need for the Bank of Angola to update its rules and procedures in order to confer greater efficiency and flexibility in making payments abroad for foreign exchange operations of current invisibles, goods, and capital, ordered by resident and non-resident individuals; Considering that Notice No. 13/13 of August 6 establishes the rules and procedures to be observed in carrying out foreign exchange operations for current invisibles; In exercise of the competence conferred upon me by the combined provisions of paragraph 2 of Article 28 of Law No. 5/97 of July 27 - Foreign Exchange Law, and Article 40 of Law No. 16/10 of July 15 - Bank of Angola Law, I DETERMINE:

CHAPTER I General Provisions

Article 1. (Object)

CONTINUATION OF NOTICE NO. 10/2019 Page 2 of 13 This Notice establishes the rules and procedures to be observed in purchasing foreign currency for carrying out foreign exchange operations by individuals, namely:

1. Operations of Resident Individuals a) Current Invisible Operations, namely: i. Private operations ordered by individuals for expenses related to travel, unilateral private transfers, including for family support, education, and health; ii. Transfer of resources accumulated by a foreign citizen during their residence in the country under a residence authorization visa, at the end of their stay or completion of mission in the country. b) Goods Import Operations ordered by individuals, of a private nature; c) Capital Operations, namely: i. Acquisition operations for real estate or financial assets abroad; ii. Financing contracted with a Financial Institution abroad for any purpose;
2. Operations of Non-Resident Individuals Under a Work Visa a) Current Invisible Operations, namely: i. Transfer of employment remuneration; ii. Transfer of imported resources to the country; iii. Transfer of capital income; iv. Transfer of accumulated resources during temporary residence in the country, upon cessation of their stay in the country. Article 2.

CONTINUATION OF NOTICE NO. 10/2019 Page 3 of 13 (Scope) The recipients of the provisions contained in this Notice are the parties involved in carrying out foreign exchange operations, namely: a) Individuals ordering the aforementioned operations; b) Intermediary Banking Financial Institutions in the aforementioned operations. Article 3. (Definitions) For the purposes of this Notice, it is understood that: a) Foreign Exchange Coverage: availability in foreign currency intended for the settlement of a foreign exchange operation. b) Financial Institution: Banking or non-banking Financial Institution that, under Law No. 12/2015 of June 17, may exercise foreign exchange trade within its corporate object and has been licensed for this purpose by the Bank of Angola. c) Foreign Exchange Settlement: payment or other form of extinguishment of a foreign exchange obligation. d) Licensing: administrative process by which authorization is granted to the Financial Institution to settle a current invisible operation, which under this Notice is not exempt from prior authorization by the Bank of Angola. e) Foreign Exchange Operation: any act, transaction, or transfer carried out between a resident and non-resident individual, which may result in payment or receipt abroad, or which is simply qualified by law as such. f) Personal Capital Operations: transfers or transactions to and from abroad, relating to gifts, inheritances, legacies, dowries, and loans of exclusively civil nature, as well as the Payment of installments due by insurance companies resulting from direct life insurance contracts, with the exception of pensions and annuities which are classified as current invisible operations;

CONTINUATION OF NOTICE NO. 10/2019 Page 4 of 13 g) Resident Individual: as defined in paragraph 1 of Article 4 of Law No. 5/97 of June 27, Foreign Exchange Law, including a foreign citizen individual residing in Angola under a residence fixation visa. h) Non-Resident Individual: as defined in paragraph 2 of Article 4 of Law No. 5/97 of June 27, Foreign Exchange Law. i) Foreign Exchange Registry: collection, electronic processing, and maintenance of essential information regarding a foreign exchange operation, in the Integrated Foreign Exchange Operations System (SINOC). j) Income: receipts from the use of production factors, namely land, labor, and capital. k) Integrated Foreign Exchange Operations System (SINOC): automated information system made available by the Bank of Angola to Financial Institutions for the approval and licensing of foreign exchange contracts and registration of payments and receipts made. l) Transfer for Family Support or Maintenance of Physical Persons: sending of funds by a resident entity, intended for the maintenance of direct relatives who are financially dependent on residents in the country. m) Current Transfers - refer to financial flows sent abroad by private entities, without counterpart of goods, services, financial applications, or investment, namely, transfers for family support, educational, scientific and cultural purposes, health treatment, periodic contributions to professional bodies, as well as other transfers of identical nature. n) Transfers for Educational, Scientific and Cultural Purposes: sending of funds by a resident entity, with the purpose of covering expenses for persons who habitually reside in the country and are abroad fulfilling academic, professional or scientific training programs, including scholarships. The aforementioned transfers, in addition

CONTINUATION OF NOTICE NO. 10/2019 Page 5 of 13 to tuition or school fees, also include accommodation, food, transport and other costs of the same nature. o) Transfers for Health Treatment: sending of funds by a resident entity, intended to cover health treatment expenses abroad, including reimbursement of already incurred expenses, as well as the performance of medical examinations and other medical and laboratory services. p) Travel: expenses related to accommodation, food, and transport during the traveler's stay in the host country, provided that the period of stay is less than one year. Article 4. (Financial Intermediation) The intermediation of foreign exchange operations may only be carried out by a Banking Financial Institution authorized to exercise foreign exchange trade, within the framework of current legislation. Article 5. (Licensing)

1. The operations covered by this Notice, with the exception of those referred to in paragraph 3 of this article, are exempt from licensing by the Bank of Angola, without prejudice to the obligation of their registration as provided in Article 7 of this Notice.
2. Goods import operations carried out by individuals are subject to the regulations on rules and procedures applicable to foreign exchange operations for goods import and export.
3. Capital operations carried out by individuals are subject to prior licensing by the Bank of Angola as provided in this Notice. Article 6.

CONTINUATION OF NOTICE NO. 10/2019 Page 6 of 13 (Responsibility of Financial Institutions in Processing Foreign Exchange Operations)

1. Banking Financial Institutions must ensure, before executing any foreign exchange operation under this Notice or sending the operation to the Bank of Angola for licensing, that they meet all necessary requirements for their realization referred to in foreign exchange legislation and regulations on foreign exchange operations, as well as legislation and regulations on anti-money laundering and combating the financing of terrorism.
2. Banking Financial Institutions may only execute foreign exchange operations upon request by orderers who are their clients and with whom they have regular relations, and whose account opening processes are adequately documented and updated as required by anti-money laundering and combating the financing of terrorism legislation and regulations, in order to allow adequate customer knowledge.
3. In the case of orderers who are non-resident individuals under a work visa, in addition to the provisions of the previous paragraph, there is an additional requirement for their income to be domiciled in the Banking Financial Institution.
4. Whenever the evaluation of operations raises doubts, Financial Institutions must request additional elements and refrain from executing them until satisfactory clarification by the orderer. Article 7. (Registration of Foreign Exchange Operations in SINOC)
5. Financial Institutions must register foreign exchange operations covered by this Notice in the Integrated Foreign Exchange Operations System (SINOC), regardless of their purpose and the currency of the debited account.
6. The procedures for registering operations in SINOC are defined in a specific Guidance document. Article 8.

CONTINUATION OF NOTICE NO. 10/2019 Page 7 of 13 (Foreign Exchange Coverage and Settlement)

1. Foreign exchange coverage for the settlement of operations subject to this Notice must be processed by using the orderer's own foreign currency funds, or by purchasing foreign exchange from the Banking Financial Institution.
2. The orderer's account in national currency in case of purchasing foreign exchange, or the account in foreign currency in case of using the client's own resources, must be debited, as applicable: a) On the date of execution of the payment order abroad; b) On the date of settlement of the credit card balance; c) On the date of loading the prepaid card; d) On the date of delivery of foreign currency cash. Article 9. (Payment Instruments)
3. For foreign exchange operations covered by this Notice, the use of bank transfers, international payment cards, non-negotiable named checks, or other analogous international payment instruments is permitted, and Financial Institutions must make available the payment modalities most suitable for the purpose of the operation.
4. The limits attributed to credit cards or the value of prepaid card reloads must respect what is established in paragraph 1 of Article 10 of this Notice, and when applicable. Article 10. (Annual Limits)
5. The volume of private operations for all purposes, carried out in the same calendar year by resident individuals over 18 years of age, through purchasing foreign currency or using own funds, must not exceed the cumulative amount equivalent to USD 120,000.00 (one hundred and twenty thousand United States dollars), when ordered or made in the name of the same person, regardless of the purpose or payment instrument used.

CONTINUATION OF NOTICE NO. 10/2019 Page 8 of 13 2. The following operations are exempt from the limit defined in paragraph 1 of this article, provided that the client's financial capacity for the requested values is ensured: a) Payment of health, education, and accommodation expenses when payments are made directly to the providers of these services; b) Transfer of accumulated resources by non-resident foreign citizens during their stay in the country, upon cessation of their residence in the country. CHAPTER II Operations Ordered by Resident Individuals Section I Current Invisible Operations

Article 11. (Evaluation of Operations)

1. For the purposes of determining the limit referred to in paragraph 1 of Article 10 of this Notice, Banking Financial Institutions must: a) Determine the client's financial capacity considering proven income and their responsibilities, ensuring the legitimacy of holding the national currency funds used to purchase foreign currency or the clients' own resources in foreign currency; b) Evaluate the compatibility of the value of the requested operation and operations already carried out in the calendar year by the client, with their financial capacity;
2. In case of purchasing foreign currency for health, education, or accommodation expenses paid directly to the respective providers of these services, provided that the client's financial capacity is ensured according to the previous number, the Banking Financial Institution must obtain the invoice or other charging document.

CONTINUATION OF NOTICE NO. 10/2019 Page 9 of 13 3. In case of purchasing foreign currency for transferring resources by non-resident individuals in the country, at the end of their stay, Banking Financial Institutions must evaluate the reasonableness of the value of the requested transfer, considering the level of proven income earned by them during their stay in the country and transfers already made during this period. 4. For carrying out foreign exchange operations subject to this Notice, orderers must request the intervening Financial Institution to purchase foreign currency and/or transfer funds, indicating for this purpose their respective objective. 5. The presentation of supporting documentation is exempted for carrying out private foreign exchange operations, namely for travel expenses, unilateral private transfers, including for family support. Section II Capital Operations

Article 12. (Acquisition of Real Estate or Financial Assets)

1. Licensing requests for the acquisition of real estate or investment in financial assets abroad, regardless of the use of own foreign currency resources or purchasing foreign exchange from a Banking Financial Institution, must be submitted by interested parties to Banking Financial Institutions, for forwarding to the Bank of Angola, accompanied by the following documentation, as applicable: a) Identification of the parties involved; b) Terms and conditions of the acquisition of real estate or investment; c) Document proving available resources in national currency or foreign currency for the acquisition of real estate;

CONTINUATION OF NOTICE NO. 10/2019 Page 10 of 13 d) Declaration by the Banking Financial Institution confirming that the client has no irregular debts registered in the Credit Risk Information Center (CIRC). 2. The licensing of operations does not imply any responsibility or commitment in making foreign exchange resources available for their settlement abroad. Article 13. (Contracting of Financing Abroad)

1. Licensing requests for contracting financing with a Financial Institution abroad for any purpose must be submitted by interested parties to national Banking Financial Institutions, for forwarding to the Bank of Angola, accompanied by the following: a) A technical form to be defined by the Bank of Angola, containing the following information: i. Identification of the parties; ii. Objective of the operation and application to be given to the funds; iii. Global value and scheme for use and repayments (date, amounts, and currencies); iv. Proposed financial conditions (interest rates, commissions, and other charges); v. Terms and conditions of possible guarantees or other associated operations; vi. Document proving income or payment means for the buyer, sufficient to ensure debt service; vii. Any other elements considered relevant for the evaluation of the operation.

CONTINUATION OF NOTICE NO. 10/2019 Page 11 of 13 b) A declaration by the Banking Financial Institution confirming that the client has no irregular debts registered in the Central de Informação de Risco de Crédito (CIRC). Article 14. (Personal Capital Operations)

1. The receipt of funds from abroad, namely gifts, inheritances, and legacies, destined to resident individuals may be freely carried out by Banking Financial Institutions, being only subject to registration in accordance with Article 7 of this Notice.
2. Resident individuals may purchase foreign currency from Banking Financial Institutions to carry out payments related to capital amortization and settlement of interest and associated expenses without prior authorization from the Bank of Angola, provided that these are carried out in accordance with the terms and conditions of the credit, loan, or financing contract authorized by the Bank of Angola. CHAPTER III Operations Ordered by Non-Resident Individuals

Article 15. (Current Invisible Operations)

1. Non-resident foreign citizens are permitted to purchase foreign currency and transfer abroad, legally earned revenues resulting from their salaries and other remunerations linked to their contracts, when deposited by the resident contracting entity, in non-resident accounts, upon presentation of documentation proving the contractual link, and these operations must be carried out in the institution where the salary is domiciled.
2. In the foreign currency purchase operations referred to in the previous paragraph, Banking Financial Institutions must verify the validity of the work visa, the income value through the employment contract duly approved by the supervising ministry, compliance with tax obligations, coherence between documents, and that credits in workers' accounts result from direct transfers by the employer.
3. The transfer referred to in paragraph 1 of this article may be executed by debiting the worker's bank account or the employer's account.
4. In case of purchasing foreign currency for transferring income by non-resident foreign workers, at the end of their stay, Banking Financial Institutions must evaluate the reasonableness of the value of the requested transfer considering the level of proven income earned by them during their stay in the country and transfers already made during this period, as well as confirm that the client has no tax debts nor irregular bank debts registered, respectively, in the General Tax Authority or in the Central de Informação de Risco de Crédito (CIRC).
5. Foreign currency financial resources declared upon entry into the country by non-resident individuals may be freely repatriated.
6. Income transfer operations, namely interest on bank deposits and financial assets as well as dividends, are governed by specific regulations. CHAPTER IV Final Provisions

Article 16. (Penalties) Violations of the provisions established in this Notice are punished in accordance with Law No. 5/97 of June 27 - Foreign Exchange Law, and Law No. 12/2015 of June 17 - Basic Law of Financial Institutions. Article 18. (Doubts and Omissions)

CONTINUATION OF NOTICE NO. 10/2019 Page 13 of 13 The Bank of Angola is responsible for clarifying doubts and omissions arising in the interpretation and application of this Notice. Article 19. (Repealing Norm) The articles of Notice No. 13/13 and its Annex, of August 6, and Guidance No. 1/03, of February 7 that contradict the provisions of this Notice are repealed, as well as Guidance No. 06/2018 of June 19, Directive No. 15/DSP/2011, and all other normative provisions that contradict what is established in this Notice. Article 20. (Entry into Force) This Notice enters into force 60 (sixty) days after the date of its publication. PUBLISH. Luanda, November 6, 2019. THE GOVERNOR JOSÉ DE LIMA MASSANO