Regulatory Alerts2019-07-04
Instruction No. 06/2019 of July 5 – Financial System: Kwanza Banknote Deposit and Withdrawal Operations
The Banco Nacional de Angola issued Instruction No. 06/2019 to standardize the operating hours, rules, and procedures for cash deposit and withdrawal operations at its strongrooms, regional delegations, and authorized custody services. The directive mandates that banks conduct a maximum of three weekly deposits and withdrawals between 8:30 and 13:30, utilizing standardized packaging of ten thousand notes each, while requiring advance electronic notification via a dedicated portal. It further establishes strict labeling, packaging, and condition-based classification (fit, unfit, deteriorated) for banknotes, revokes previous conflicting regulations, and takes effect thirty days after publication.
INSTRUCTION NO. 06/2019 of July 5 SUBJECT: FINANCIAL SYSTEM
- Kwanza Banknote Deposit and Withdrawal Operations Considering the need to align the rules and procedures inherent to deposit, withdrawal, and circulation of the national currency, under Articles 6 and 7 of Law No. 16/10 of July 15, the Law of the Banco Nacional de Angola; In exercise of the authority conferred upon me by Article 51 of Law No. 16/10 of July 15, the Law of the Banco Nacional de Angola. I HEREBY DETERMINE:
- Object This Instruction defines the operating hours, rules, and conditions under which deposits and withdrawals of banknotes and metallic coins may be carried out at the Strongrooms of the Banco Nacional de Angola (BNA), specifically in Luanda province, its Regional Delegations, as well as at authorized Value Custody services.
- Scope This Instruction applies to Banking Financial Institutions authorized to perform deposit and withdrawal operations of cash at the Strongrooms of the Banco Nacional de Angola, hereinafter abbreviated as Banks.
- General Rules 3.1. The Banco Nacional de Angola ensures Banks the deposit and withdrawal of cash at its Strongrooms in Luanda,
CONTINUATION OF INSTRUCTION NO. 06/2019 Page 2 of 6 Regional Delegations, and institutions providing Value Custody services. 3.2. Cash deposit and withdrawal operations may be carried out under the following conditions: a) Banks are permitted to perform, weekly, a maximum limit of 3 (three) deposits and 3 (three) withdrawals; b) During operating hours from 8:30 to 13:30, without interruption; c) Via packaging containing values to be deposited by Banks, which must contain 10 (ten) bundles of one thousand notes each, corresponding to 10,000.00 (ten thousand) banknotes of equal face value; d) For deposit purposes at the headquarters of the Banco Nacional de Angola, a minimum of 10 (ten) packages is permitted, each containing 10,000.00 (ten thousand) notes. e) For Regional Delegations and Value Custody Service Institutions, the minimum quantity is 2 (two) packages of 10,000.00 (ten thousand) notes. 3.3. Deposit and withdrawal operations must be communicated via the Banco Nacional de Angola's Advance Notice Management Portal, at least 24 hours in advance of the scheduled date. 3.4. The communication and management of deposit orders (DO) and withdrawal orders (WO) for cash at the Banco Nacional de Angola must be carried out by Banks through the Advance Notice Management Portal, provided for this purpose, and must comply with the following functionalities: a) Communication of deposit and withdrawal orders for cash (DO and WO); b) Inquiry into the status of cash deposit and withdrawal operations; c) Inquiry into regularization operations;
CONTINUATION OF INSTRUCTION NO. 06/2019 Page 3 of 6 d) Management of mandates; and, e) Management of treasury operations, under any agreements concluded between the Banco Nacional de Angola and custodial institutions. 4. Procedures to be Observed in Carrying Out Cash Deposit and Withdrawal Operations 4.1 Deposit Operations: 4.1.1. Banknotes may be deposited at the Strongrooms of the Banco Nacional de Angola on all business days, according to the following operational rules: a) Banknotes included in deposits must have legal tender status in the country and must be presented face-up and aligned, packaged, labeled, and segregated by denomination and condition of use. b) Banknotes delivered for deposit must be separated according to their condition of use, as follows: i. Fit; ii. Unfit; and, iii. Deteriorated. 4.1.2. For the purposes of this Instruction, it is understood that: a) Fit banknotes: considered suitable for circulation after manual verification of authenticity and quality, or by equipment, whose fitness has been recognized by the Banco Nacional de Angola; b) Unfit banknotes: considered unsuitable for circulation after manual verification of authenticity and quality or by equipment, whose unfitness has been recognized by the Banco Nacional de Angola; c) Deteriorated banknotes: considered unsuitable due to their state of degradation, which cannot be processed by high-speed sorting equipment, normally appearing incomplete or composed of fragments of the same note, whether reconstituted or not. 4.1.3. Deposits of deteriorated banknotes must be carried out separately, observing the provisions in subpoint 4.1.1 for this purpose. 4.1.4. Deposits are only accepted under conditions where the declared values correspond to the amounts delivered and the referenced banknotes have legal tender status in the country. 4.1.5. The regularization of differences identified during the physical verification of deposits, arising from missing or excess notes, counterfeits, or forgeries, is carried out in accordance with the rules defined in point 6.3 of this Instruction. 4.1.6. The Banco Nacional de Angola is responsible for the settlement of received values through a document specifically designated for this purpose. 4.1.7. In case of irregularities detected upon receipt of volumes, if not rectified in a timely manner, the Banco Nacional de Angola may return part or all of the volumes, according to the distribution of deposit orders, within the established schedule for value deposits. 4.2 Withdrawal Operations 4.2.1 Cash may be withdrawn at the Strongrooms of the Banco Nacional de Angola, according to the following operational rules: a) Banknotes included in withdrawals are delivered face-up and aligned, packaged, labeled, and separated by denomination, as per section 4 of this Instruction;
CONTINUATION OF INSTRUCTION NO. 06/2019 Page 5 of 6 b) The Banco Nacional de Angola observes, whenever possible, the requested denomination structure for withdrawals, and may exceptionally alter this structure while ensuring satisfaction of the total requested value. 5. Reference Unit for Establishing Deposit and Withdrawal Orders for Kwanza Banknotes 5.1. The Banco Nacional de Angola establishes as the reference unit for establishing deposit and withdrawal orders ten bundles of one thousand notes each, corresponding to 10,000.00 (ten thousand) banknotes. 5.2. Deposit orders observe, in addition to denomination discrimination, the separation of banknotes according to their condition of use, as provided in point 3.2 of this Instruction. 5.3. Fit banknotes must be presented separately, in compliance with the reference units indicated above. 5.4. Unfit banknotes must be presented separately, in compliance with the reference units indicated above. 6. Labeling and Packaging Rules for Deposits 6.1. Labels on reference units destined for the Banco Nacional de Angola must identify the Bank, using the Bank's own identification colors to allow recognition, or by placing a barcode. 6.2. The labels referred to in the previous point must bear the symbol of the sending Bank, with a differentiated color according to the condition of use of banknotes delivered for deposit, as follows: a) Green color for banknotes considered fit; b) Red color for banknotes considered unfit and deteriorated. 6.3. Each bundle of one thousand notes must be bound with a sturdy band, containing inside sets of one hundred banknotes, properly strapped and packaged, ensuring their inviolability.