Circular Letter No. 01-DCC-2020, August 18, 2020

CIRCULAR LETTER NO. 01/DCC/2020
SUBJECT: Notice 12/2019 - Rules and procedures for foreign exchange operations by individuals Dear Sirs, The National Bank of Angola has noted that some commercial banks are establishing limits for current invisible foreign exchange operations requested by individual clients (travel, family assistance or other unilateral private transfers), based on the purpose of the operation. Contrary to current regulations and negatively affecting confidence in the financial system, the National Bank of Angola hereby clarifies the following:

1. When operations involve the purchase of foreign currency, in accordance with Notice No. 12/2019 of December 2, the amount that may be sold to each client is always dependent on their financial capacity, regardless of the operation's purpose, and subject to an annual limit equivalent to USD 120,000.00 (one hundred and twenty thousand United States dollars) per client, except when it concerns direct payments to education or health service providers, which are subject solely to the client's financial capacity.
2. When determining the foreign currency amount to sell to each of their clients, as well as the currency amount to be made available when it concerns own funds deposited in an account denominated in foreign currency, commercial banks must consider the limit referred to in the preceding paragraph of this letter, as well as the results of the procedures defined in No. 2 of Article 6 of Notice No. 12/2019, regardless of purpose, namely:

• The financial capacity of the account holders, considering their proven income and responsibilities and ensuring the legitimacy of holding funds in national or foreign currency;
• The compatibility of the account holder's financial capacity with the value of the requested operation and operations already carried out during the calendar year by the account holder.

3. In cases of foreign currency sales for travel, the National Bank of Angola recommends the issuance of internationally branded payment cards, reducing risks associated with carrying cash. If cash withdrawal is chosen, commercial banks must ensure its reporting to the Financial Intelligence Unit (FIU), when these exceed the value defined in applicable legislation and regulations.
4. Thus, the client/account holder's financial capacity and the total annual amount of USD 120,000 are the only "limits" that may be applied by commercial banks when selling foreign currency to their clients for covering current invisible private nature foreign exchange operations. The establishment of any other limits, whether based on the purpose or periodicity of the operation, is not permitted.
5. It should be noted that if a commercial bank lacks the capacity to execute foreign currency sales at the value and timeframes requested by its client, it must refuse execution and inform the client in writing, in accordance with Instruction No. 1/2020 of January 10.
   Any additional clarifications that commercial banks deem necessary should be requested from the Foreign Exchange Control Department (DCC) of the National Bank of Angola.
   Luanda, January 21, 2020
   Taxpayer ID: 7401012332