Notice No. 17/2020 of August 3

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PUBLISHED IN THE OFFICIAL GAZETTE, 1ST SERIES, NO. 117, OF AUGUST 3 NOTICE NO. 17/2020 SUBJECT: EXCHANGE RATE POLICY

• Rules and Procedures for the Execution of Foreign Exchange Operations by Individuals

Given the need to update and clarify the rules and procedures for making payments abroad for foreign exchange operations involving current invisibles, goods, and capital transactions ordered by resident and non-resident individuals; In the exercise of the powers conferred upon me by the combined provisions of paragraph 2 of Article 28 of Law No. 5/97, dated July 27 – Exchange Rate Law, and Articles 40 and 51 of Law No. 16/10, dated July 15 – Law of the National Bank of Angola. I HEREBY DETERMINE:

CHAPTER I General Provisions

Article 1. (Subject Matter) The present Notice establishes the rules and procedures to be observed in carrying out foreign exchange operations for purchasing foreign currency or transferring own funds in foreign currency by individuals, namely:

1. Operations of Resident Foreign Exchange Operators a) Current Invisible Operations, namely: i. Private operations ordered by individuals for travel expenses, unilateral private transfers, including family support, education, and health; ii. Transfer of imported or accumulated resources 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 of real estate or financial assets abroad; ii. Financing contracted with a foreign financial institution for any purpose.
2. Operations of Non-Resident Foreign Exchange Operators i. Transfer of employment remuneration; ii. Transfer of imported resources to the country; iii. Transfer of capital income.

Article 2. (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) Financial institutions acting as intermediaries in these operations.

Article 3. (Definitions) For the purposes of this Notice, the following terms are understood as: a) Foreign Exchange Operation: the sale of foreign currency to a client or the debit of a client's account with own funds in foreign currency, to cover an operation involving current invisibles as defined in this Notice. b) Resident Foreign Exchange Operator: as defined in paragraph 1 of Article 4 of Law No. 5/97 dated June 27, Exchange Rate Law, including an individual foreign citizen residing in Angola under a residence visa. c) Non-Resident Foreign Exchange Operator: as defined in paragraph 2 of Article 4 of Law No. 5/97 dated June 27, Exchange Rate Law, including non-resident foreign workers who exercise a remunerated activity in the country. d) Personal Capital Operations: transfers or transactions to and from abroad, relating to (i) donations, dowries, and loans of exclusively civil nature, (ii) payment of amounts due by insurance companies resulting from direct life insurance contracts, excluding pensions and annuities. e) Current Transfers: financial flows sent abroad by private entities, without counterpart 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 the same nature. f) Transfer for Family Support or Maintenance of Natural Persons: sending of funds by a resident foreign exchange entity, intended for the maintenance of direct relatives who are financially dependent on residents in the country. g) Transfers for Educational, Scientific and Cultural Purposes: sending of funds by a resident foreign exchange entity, to cover expenses for persons who habitually reside in the country and are abroad fulfilling academic, professional or scientific training programs, including scholarships. These transfers, in addition to tuition fees, also include accommodation, food, transport and other similar costs. h) Transfers for Health Treatment: sending of funds by a resident foreign exchange 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. i) Travel: expenses related to accommodation, food, and transport during the traveler's stay in the host country, provided that the period of residence is less than one year.

Article 4. (Financial Intermediation) The intermediation of foreign exchange operations may only be carried out by a Financial Institution authorized to conduct foreign exchange trading, within the framework of current legislation.

Article 5. (Licensing)

1. The operations covered by this Notice, except those referred to in paragraph 3 of this article, are exempt from licensing by the National 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 National Bank of Angola, as provided in this Notice.

Article 6. (Responsibility of Financial Institutions in Processing Foreign Exchange Operations)

1. Financial institutions must ensure, before executing any foreign exchange operation under this Notice or sending it to the National Bank of Angola for licensing, that they meet all necessary requirements for execution referred to in foreign exchange legislation and regulations, as well as anti-money laundering and counter-terrorist financing legislation and regulations.
2. Financial institutions may only execute foreign exchange operations: a) Upon request by clients whose account opening processes are adequately documented and updated, as required by current legislation and regulations; b) After determining the ordering party's financial capacity, considering proven income and responsibilities, ensuring the legitimacy of possession of national currency funds used to purchase foreign currency or own foreign currency resources; c) If the total value of the requested operation and operations already executed in the civil year by the ordering party is compatible with their financial capacity.
3. Whenever operation evaluation raises doubts, Financial institutions must request additional information and refrain from executing them until satisfactory clarification by the ordering party.

Article 7. (Registration of Foreign Exchange Operations in SINOC)

1. 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.
2. Procedures for registering operations in SINOC are defined in a specific Instruction Manual.

Article 8. (Exchange Coverage and Settlement)

1. Exchange coverage for settling the operations subject to this Notice must be processed by using the ordering party's own foreign currency funds or by purchasing foreign exchange from the Financial Institution.
2. The ordering party's national currency account, in case of purchasing foreign exchange, or the foreign currency account, in case of using the client's own resources, must be debited as follows: a) On the date of executing the payment order abroad; b) On the date of settling the credit card balance; c) On the date of loading the prepaid card; d) On the date of delivering foreign currency cash.

Article 9. (Payment Instruments)

1. 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.
2. In purchasing foreign currency by clients for travel purposes, Banking Financial Institutions may provide cash, respecting the current limits on cash entry and exit from the country defined in specific regulations.

Article 10. (Annual Limits)

1. The value of private operations for all purposes carried out in the same civil year by resident foreign exchange individuals over 18 years old, through purchasing foreign currency or using own foreign currency funds, must not exceed the cumulative amount equivalent to USD 120,000.00 (One Hundred and Twenty Thousand United States Dollars), when ordered by the same person, regardless of the payment instrument used.
2. The limits assigned to international brand payment cards must respect the provisions of the preceding paragraph of this article.
3. The following operations are exempt from the limit defined in paragraph 1 of this article: a) Payment of health, education, and accommodation expenses when made directly to service providers; b) Transfer of resources accumulated by foreign citizens residing as foreign exchange operators during their stay in the country, upon cessation of their residence; c) Transfer of imported resources to the country and declared upon entry by foreign citizens residing as foreign exchange operators.
4. The National Bank of Angola may exceptionally authorize duly justified requests for foreign exchange operations with values exceeding the limit defined in paragraph 1 of this article, requiring clients to submit supporting operation documentation to their Banking Financial Institution for subsequent forwarding to the National Bank of Angola.

CHAPTER II Operations Ordered by Resident Foreign Exchange Operators

Section I Current Invisible Operations

Article 11. (Submission of Documentation)

1. For the execution of private operations established in paragraph 1 of Article 10 of this Notice, namely for travel expenses and unilateral private transfers including family support, the submission of supporting documentation is waived, except for operations referred to in paragraph 2 of this article.
2. In the case of purchasing foreign currency or transferring own foreign currency resources for health, education, and accommodation expenses paid directly to the respective service providers, the Banking Financial Institution must obtain an invoice or other billing document.
3. For carrying out the foreign exchange operations referred to in paragraph 1 of this article, ordering parties must indicate to the Banking Financial Institution the underlying purpose for statistical purposes.

Section II Capital Operations

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

1. Licensing requests for acquiring real estate or investing in financial assets abroad, regardless of using own foreign currency funds or purchasing foreign exchange, must be submitted by interested parties to Banking Financial Institutions for forwarding to the National Bank of Angola, accompanied by the following documentation, as applicable: a) Identification of parties involved; b) Terms and conditions of acquiring the real estate or investment; c) Document proving available funds in national or foreign currency for acquiring the real estate or investment; d) Declaration from the Banking Financial Institution confirming that the client has no irregular debts registered in the Credit Risk Information Central (CIRC).
2. Licensing of operations does not imply any responsibility or commitment in providing foreign exchange resources for their settlement abroad.

Article 13. (Contracting Financing Abroad)

1. Licensing requests and respective documentation for contracting financing from a Financial Institution abroad for any purpose must be submitted by interested parties to national Banking Financial Institutions.
2. For licensing purposes, national Banking Financial Institutions must forward to the National Bank of Angola the following: a) A technical form to be defined by the National Bank of Angola, containing: i. Identification of parties; ii. Objective of the operation and application of funds; iii. Global value and scheme for utilization and repayments (date, amounts, currencies); iv. Proposed financial conditions (interest rates, commissions, and other charges); v. Terms and conditions of any guarantees or associated operations; vi. Any other elements considered relevant for operation assessment. b) Document proving income or payment means of the buyer, sufficient to ensure debt service; c) A declaration from the Banking Financial Institution confirming that the client has no irregular debts registered in the Credit Risk Information Central (CIRC).
3. Resident foreign exchange operators may purchase foreign currency from Banking Financial Institutions to make payments related to capital amortization and settlement of interest and associated expenses without prior authorization from the National Bank of Angola, provided they are executed in accordance with the terms and conditions of the credit, loan, or financing contract authorized by the National Bank of Angola.

Article 14. (Personal Capital Operations) Donations, inheritances, and bequests destined to resident foreign exchange operators may be freely transferred and deposited in Banking Financial Institutions domiciled in the country, subject only to registration under Article 7 of this Notice.

CHAPTER III Operations Ordered by Non-Resident Foreign Exchange Operators

Article 15. (Current Invisible Operations)

1. Non-resident foreign workers who exercise a remunerated activity in the country must obligatorily open a non-resident foreign exchange account at a Banking Financial Institution headquartered in Angola, where their income shall be domiciled.
2. The aforementioned workers may purchase foreign currency and transfer their legally earned income abroad under a work contract, doing so at any time with any frequency higher than the receipt of income.
3. In purchasing foreign currency operations referred to in the preceding paragraph, Banking Financial Institutions must verify: a) The existence of a visa allowing the exercise of a remunerated activity and its validity; b) The existence of a work contract duly approved by the supervising ministry and its validity period; c) That account credits for workers result from direct transfers from the employer entity; d) That values the worker intends to transfer are coherent with income earned under the work contract; e) Compliance with tax obligations.
4. Capital 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 under Law No. 5/97 dated June 27 - Exchange Rate Law, and Law No. 12/2015 dated June 17 - Framework Law of Financial Institutions.

Article 17. (Doubts and Omissions) The National Bank of Angola is responsible for clarifying doubts and omissions arising in the interpretation and application of this Notice.

Article 18. (Repealing Provision) Notice No. 12/2019 of December 2, and all other normative provisions contrary to what is established in this Notice are repealed.

Article 19. (Entry into Force) This Notice enters into force 30 days after the date of its publication. PUBLISHED. Luanda, July 28, 2020. THE GOVERNOR JOSÉ DE LIMA MASSANO