Instruction No. 03-2016 of April 25 regarding the Angola Payment System and CCAA Settlement Guarantees

INSTRUCTION NO. 03/16 of April 25 SUBJECT: ANGOLA PAYMENT SYSTEM

• Automated Clearing House of Angola (CCAA)
• Guarantees for Settlement of Balances

Given the need to define penalties to be applied for non-compliance with regulations regarding the establishment and use of guarantees for the settlement of balances of the Automated Clearing House of Angola (CCAA) subsystems, in accordance with the transparency principle defined in Law No. 05/05 of July 29, the Angola Payment System Law.

Considering the negative impact resulting from the inability to settle payments due to insufficient guarantee by a participant, both on other participants and on users of the Angola Payment System (SPA).

Taking into account the responsibilities of the Bank of Angola in the stability of the national financial system and in the management of the payment system.

Under the combined provisions of Article 7 of Law No. 5/05 of July 29, the Payment System Law, and Article 51 of Law No. 16/10 of July 15, the Bank of Angola Law.

I DETERMINE:

1. Guarantee below the mandatory minimum 1.1 At the opening of a clearing session, whenever a participant has a guarantee lower than the mandatory minimum calculated in accordance with the provisions of Instruction No. 06/15 of May 26, and complementary regulation, the participant is penalized by the amount calculated according to the following formula:

Vp = Max(x% × (GmP - GrP); Vm),

Where:

• Vp = value of the penalty applicable to participant P,
• Max(x% × (GmP - GrP); Vm) = maximum between ‘x% × (GmP - GrP)’ and Vm,
• x% = multiplier factor,
• GmP = minimum guarantee to which participant P is obliged,
• GrP = actual guarantee constituted by participant P,
• Vm = absolute minimum value for the penalty of any participant in a similar situation.

1.2 The values of the parameters x% and Vm will be defined in a Directive of the Bank of Angola.

2. Reinforcement of guarantee below the mandatory minimum 2.1 In situations where the actual guarantee constituted by the participant is lower than the minimum guarantee, whenever operationally feasible, notably taking into account the operating hours of the SPTR and the existence of available funds in the participant's Settlement Account (CLP), the CCAA operating company is authorized to debit the Settlement Account, crediting the respective Reserve Account for clearing balance settlement (“CCAA Reserve Account”) up to the amount of the minimum guarantee.

2.2 The provisions of the previous paragraph do not exempt the defaulting participant from the penalty provided for in number 1 of this Instruction.

3. Settlement failure 3.1 Whenever a cheque cannot be cleared due to insufficient guarantee provided by the debited Participant, this is subject to the following penalty:

• On the first day the cheque is not cleared – Pc
• On the second day the cheque is not cleared – 2 x Pc

3.2 The value Pc is applicable to each cheque that cannot be cleared and is independent of its issue value, being defined in a Directive of the Bank of Angola.

4. Settlement The settlement of penalties must be carried out daily, with reference to the previous business day, through the Interbank Tariff Clearing file of the Credit Transfers Subsystem, in favor of the Bank of Angola.

5. Re-evaluation By the end of 2016, the Payment System Department must prepare a report on the impact of the measures provided for in this Instruction, referring to the first 6 (six) months of its validity.

6. Doubts and Omissions Doubts and omissions arising from the interpretation and application of this Instruction are resolved by the Payment System Department of the Bank of Angola.

7. Entry into force This Instruction enters into force in the subsystems covered from the date of clearing settlement of April 11, 2016.

PUBLISH Luanda, April 25, 2016 THE GOVERNOR VALTER FILIPE DUARTE DA SILVA