Notice No. 10/2016 on the Opening, Operation, and Closure of Bank Deposit Accounts

NOTICE NO. 10/2016 SUBJECT: OPENING, MOVEMENT, AND CLOSURE OF BANK DEPOSIT ACCOUNTS

Given the need to align with best practices and international policies regarding the establishment of rules and procedures for the opening, movement, and closure of bank deposit accounts;

In accordance with the combined provisions of item f) of paragraph 1 of Article 21 and item d) of paragraph 1 of Article 51, both of Law No. 16/10 of July 15, the Law of the National Bank of Angola, conjugated with Articles 70, 71, and paragraph 1 of Article 75, all of Law No. 12/15 of June 17, the Law of Bases of Financial Institutions;

I DETERMINE:

Article 1. (Object) This Notice establishes the general terms and conditions for the opening, movement, and closure of bank deposit accounts, hereinafter referred to as deposit accounts.

Article 2. (Scope) This Notice applies to Banking Financial Institutions under the supervision of the National Bank of Angola, hereinafter abbreviated as Institutions.

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Article 3. (Definitions) For the purposes of this Notice, the following are understood:

1. Opening of a bank deposit account: a contract established between the Institutions and clients, concluded by the free decision of both parties.
2. Individual accounts: those that have a single depositor owner, which may be an individual or a legal entity.
3. Collective accounts: those that have more than one owner, consisting of individuals. These accounts, regarding the manner of movement, may be: a) Joint and several accounts: those constituted in the name of several owners and subject to the regime of joint and several liability, in that any of the owners may move the account without needing authorization or intervention from the others, leaving the Institutions exempt from all responsibilities for compliance with orders given by a single owner, including the delivery of all or part of any deposited goods or values or withdrawals, advanced or not, of any deposits, with the depositors being joint and several and jointly and severally liable before the Institutions. b) Joint accounts: those constituted in the name of several owners, subject to the regime of conjunction in which the goods or deposited values can only be moved, in whole or in part, with the intervention or authorization of all owners; and c) Mixed accounts: offer different possibilities of movement, depending on what their owners agree with the Institutions.
4. Closure of a bank deposit account: the process that allows for the paralysis of its movement and the elimination of all business ties linked to it.
5. Movement of a bank deposit account: the set of acts regarding the alteration of a deposit account, embodied in deposits, withdrawals, transfers, and credits.

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6. Durable medium: any instrument that allows clients to store information addressed to them personally, so that they can easily access it in the future, during a period of time adequate for the purposes to which these are destined, and as well as reproduce this information in an integral and unaltered manner.

Article 4. (Duty of identification in the establishment of a business relationship)

1. Institutions must, prior to the opening of bank deposit accounts, act with diligence regarding the verification of documents, with the purpose of obtaining complete and proven identification of the interested parties and their representatives, in accordance with Notice No. 22/2012 of April 25, on the prevention of money laundering and terrorist financing.
2. Without prejudice to the provisions of the previous paragraph, Institutions that present technical conditions associated with biometric means must use them to identify their clients who do not know or cannot sign.
3. Institutions must, at the time of opening bank deposit accounts, request original documents to verify authenticity and make copies thereof for retention in the archive.

Article 5. (General conditions of the contract for opening bank deposit accounts)

1. Institutions must, prior to the opening of bank deposit accounts, make available to their clients or their representatives, an exemplar form containing both the general and particular conditions, if any, within the scope of compliance with the duty of information to which they are subject, as per the Annex of this Notice, which is an integral part thereof.
2. The form referred to in the previous paragraph must be made available in paper, or with the consent of the clients or their representatives, on another durable medium that allows easy access to the information stored therein and its integral and unaltered reproduction.
3. Institutions must also provide proof of the effective availability to the account holders or their representatives of the general and particular conditions governing the account opening contract.
4. Institutions must establish in the bank deposit account opening contract the following elements: a) general and particular conditions regulating the opening, movement, and closure in the form of a contract of adhesion for individuals or legal entities; b) minimum value for opening a bank account for individuals or legal entities; c) terms of validity of the signature taking into account the compliance and authenticity of the document presented for this purpose; d) terms associated with the regime of bank account ownership; e) means of account movement; f) conditions for the application of interest and other charges; g) terms for the provision of the checkbook, loss, and restrictions on the use of checks; h) duty to communicate changes in registration data; i) terms, conditions, and procedures for the closure of deposit accounts; j) effects resulting from the lack of movement of the bank account; k) space for the signature of the bank account holder;

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l) printed copy of the bank account opening contract, after its formalization; m) advance provision of an informative technical sheet, which must contain the main characteristics of the contract, in accordance with the Notice on duties of information regarding bank deposits.

Article 6. (Identification of workers) Institutions must ensure that the signature of their workers and the date on which they proceed to the opening, updating, verification of accounts, and confirmation of the elements displayed by clients or their representatives are duly registered in internal supports.

Article 7. (Update of registration of owners and their representatives)

1. Institutions must always proceed to the verification of existing bank deposit accounts, based on criteria of materiality and risk, namely: a) specific characteristics of each account, its respective owner, and the business relationship; b) identification of accounts that require the update of documents; c) identification of accounts with fields not filled in or poorly filled in.
2. Institutions must provide, in the general conditions of account opening contracts, the obligation of their clients to communicate to them any changes verified in the identification elements.

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Article 8. (Modality, forms of movement, and modification of bank deposit accounts)

1. Institutions may proceed to the opening of accounts capable of being moved individually or collectively, whereby: a) the individual account is moved only by its owner or representative; b) the collective account is moved according to the modalities agreed upon: i. a joint and several collective account can be moved by any of its owners, individually; ii. a joint collective account can only be moved by all of its owners; and iii. a mixed collective account allows for various possibilities of movement, always depending on what its owners agree with the Institutions.
2. Institutions must allow accounts held by minors, interdicted persons, or incapacitated persons to be moved by their legal representatives, except when it concerns donations that have movement restrictions provided for, including those of legal representatives.
3. At the time of withdrawal of funds deposited in bank deposit accounts, Institutions should only require from the account holders the identification elements referred to in Article 4 of this Notice.
4. Institutions must not move accounts without the authorization of the owners or their representatives, in accordance with the contracted movement rules.
5. Institutions must provide in the contract that the initially contracted account movement conditions may be modified at the initiative of the owner, provided it is requested in writing.

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6. Without prejudice to the provisions of the previous paragraphs, Institutions must not require account holders to provide any means of payment for the withdrawal of their funds.
7. At the time of deposit of funds by third parties, Institutions must require the presentation of the identification elements referred to in Article 4 of this Notice, as well as the justification of the origin of the funds, in accordance with Notice No. 22/2012 of April 25, on the prevention of money laundering and terrorist financing.

Article 9. (Restrictions on account movement)

1. Institutions must not allow movements in the bank deposit account of owners or their representatives until the identification elements are proven, in conformity with the provisions of Article 4 of this Notice.
2. Without prejudice to the provisions of the previous paragraph, Institutions must only prevent the movement of a bank deposit account when formally communicated in the following situations: a) by the death of at least one of the owners; b) by decision and instruction of the Supervisory Body; c) by decision of judicial authorities, which determine embargo, inventory, attachment, or seizure; and d) by freezing of funds, in accordance with the law.

Article 10. (Accounts held by deceased persons)

1. Whenever Institutions become aware, officially or through public disclosure, of the death of their client, they must take the necessary precautionary measures to protect the deposited funds.

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2. Institutions must provide heirs with information regarding the statement, balance, and any existing charges on the accounts of deceased owners, provided they prove their status as heirs before the Institution, by presenting the death certificate and the deed of qualification of heirs or an official letter from the court where the head of the household is appointed.
3. Without prejudice to the provisions of the previous paragraph, Institutions must not authorize any movements in the accounts unless the heirs prove their qualification by presenting legal documents.
4. Institutions must close individual accounts held by deceased persons, except in cases where the deceased person is a co-owner of a collective account or while the succession process is not concluded.
5. Once the procedures mentioned in the previous paragraphs of this article are verified, accounts held by deceased persons must be closed, in accordance with the terms and conditions set forth in Article 11 of this Notice.

Article 11. (Minimum information requirements at the time of closure of bank deposit accounts)

1. Institutions must, annually, conduct research to analyze all accounts without movement for a period equal to or greater than 5 (five) years.
2. Institutions must communicate to the owners or representatives of the accounts referred to in the previous paragraph: a) that the account has been without movement for more than 5 (five) years; b) that the owner(s) or their representatives may, upon express order, proceed with the closure of the account.

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3. Institutions must communicate to the owners or their representatives that the closure of collective accounts requires the signature of all owners.
4. For the purposes of closure under the previous paragraphs, owners must deliver to the Institution all means of payment in their possession, such as debit or credit cards, checkbooks, or declare to the Institution that all means of payment are unusable.
5. Institutions must communicate in writing to the owners or their representatives that once all procedures referred to in the previous paragraphs have been complied with, as well as all rights and duties constituted thereon regularized, the account should be closed by the Institution within a maximum period of 30 (thirty) days.
6. Without prejudice to the provisions of the previous paragraphs, Institutions must close accounts that are not moved within a period of 15 (fifteen) years, and the values deposited therein must revert to the Angolan State, in accordance with Decree No. 187/70 of April 30.

Article 12. (Conditions for closure of bank deposit accounts)

1. Institutions must proceed with the closure of accounts whenever requested by the owners of bank deposit accounts or their representatives, the effects of which take place 30 (thirty) days after the request.
2. Institutions may proceed with the closure of accounts when there is a breach of contractual conditions by the owners or representatives, the effects of which take place 60 (sixty) days after its denunciation.

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3. Without prejudice to the provisions of the previous paragraph, Institutions may close accounts whenever it is found that the provisions of Notice No. 22/12 of April 25, on the prevention of money laundering and terrorist financing, have not been observed, observing all legal procedures.
4. Institutions must authorize the written renunciation of the ownership of collective accounts whenever requested.
5. Institutions must close accounts whenever there is an order from a competent judicial or administrative authority.
6. Institutions must make available to owners of deposit accounts or their representatives, a specific form for account closure, which must contain, at a minimum, fields for the signature and the period referred to in paragraphs 1 and 2 of this article.

Article 13. (Closure of bank deposit accounts with balance)

1. Institutions must proceed with the closure of accounts with a balance, when requested, in accordance with the provisions of Article 11 of this Notice.
2. Whenever Institutions find the existence of funds in the account, they must return them to their owners, representatives, or legitimate heirs in accordance with the provisions of Article 10 of this Notice.
3. For the purpose of the previous paragraph, Institutions are expressly authorized to declare the early maturity of any liabilities that the account holders have before the Institution and whose payments are domiciled in the account to be closed, thus allowing the compensation of these liabilities with the funds to be returned to the holders.
4. Without prejudice to the provisions of the previous paragraph, Institutions may refuse the closure of accounts whenever there are contractual obligations linked to them.

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5. Institutions and owners reserve the right to activate the competent judicial mechanisms for the resolution of disputes in the event of non-observance of the provisions in paragraphs 1 and 2 of this article.

Article 14. (Reporting of information on closed bank deposit accounts) Institutions must submit to the National Bank of Angola information regarding bank deposit accounts identified as having no movements and closed in accordance with the provisions of Article 12 of this Notice.

Article 15. (Transitional Provision) Institutions must comply with the provisions of this Notice within 120 (one hundred and twenty) days after its publication.

Article 16. (Offenses) Non-observance of the provisions of this Notice is punishable in accordance with the Law of Bases of Financial Institutions.

Article 17. (Doubts and Omissions) Doubts and omissions resulting from the interpretation and application of this Notice are resolved by the National Bank of Angola.

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Article 18. (Revocation) All regulation contrary to the provisions of this Notice is hereby revoked.

Article 19. (Entry into Force) This Notice enters into force on the date of its publication.

PUBLISH Luanda, on July 18, 2016

THE GOVERNOR VALTER FILIPE DUARTE DA SILVA

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ANNEX Bank Account Opening Form

I. Collection of information related to clients The identification obligations below apply not only to new clients of the Banking Financial Institution, but may also apply to existing clients, depending on the assessment of Money Laundering and Terrorist Financing risk associated with them.

In this sense, the delimited fields are the minimum required by current regulation, and Banking Financial Institutions may request additional information they consider relevant to reinforce the client profile.

Banking Financial Institutions must collect and conserve all records related to clients for a minimum period of 10 (ten) years. Furthermore, they must ensure that records are available in a timely manner, so that the competent authority can consult them if deemed necessary.1

In case of doubts regarding the true identity of the client and, if applicable, the representative or the beneficial owner, which cannot be resolved satisfactorily, the Banking Financial Institution must refuse to carry out any operations.

1 As per Article 20 of Notice No. 22/12 of April 25, on the prevention of money laundering and terrorist financing.

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1. Identification of individuals Full Name. Signature. Date of Birth. Nationality. Complete residential address or, if not possible, any other contacts considered valid. Profession and employer, if applicable. Name of the identification document used. Identification Number. Expiry date of the identification document. Issuing entity of the identification document. Nature and amount of income. Tax Identification Number (optional). Foreign individuals who hold or have held within the last year, positions of a political or public nature, as well as close family members and persons who are known to have close corporate or commercial relations with them. (Answer: Yes, and the position(s) held and/or name(s) of the member(s)/ or No). 2

2 Considered as: i. High positions of a political or public nature:

1. Head of State;
2. Head of Government;
3. Members of the Government, namely ministers, Secretaries of State, and Vice-Ministers;
4. Deputies or members of parliamentary chambers;
5. Magistrates of superior courts and other high-level judicial bodies, whose decisions cannot be subject to appeal, except in exceptional circumstances;
6. Members of administrative and supervisory bodies of central banks;
7. Heads of diplomatic missions and consular posts;
8. High-ranking officers of the Armed Forces and Police;
9. Members of the administrative and supervisory bodies of public companies and joint-stock companies with exclusive or majority public capital, public institutes, public foundations, public establishments, regardless of their designation, including the management bodies of companies integrated into the business and local sectors;
10. Members of the executive bodies of International Law organizations. ii. Close family members:
11. Spouse or persons with whom they are living in a de facto union;
12. Parents, children, and their respective spouses or persons with whom they are living in a de facto union. iii. Persons known to have corporate or commercial relations with them:
13. Any individual who is notoriously known as a joint owner with the holder of a political or public position of a legal entity, a center of collective interests without legal personality, or who has close commercial relations with it;

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1.1. Identification of sole traders – in addition to the above information, the following must also be filled in: Complete Business Name. Headquarters Address. Tax Identification Number (NIF). Business Object.

2. Identification of legal entities – also applies to condominiums of real estate under horizontal property regime and autonomous patrimony Complete Business Name. Business object and purpose of the business. Headquarters Address. Tax Identification Number (NIF). Commercial registration number. Identity of holders of participations in the capital and voting rights of the legal entity of value equal to or greater than 20%.3 Identity of the legal entity's attorneys and their respective mandate.

2.1. Non-profit organization – in addition to the above information, the following must also be filled in: Geographical location. Organizational Structure. Nature of donations and volunteering. Nature of funds and expenses, including basic information of beneficiaries.

3. Charitable institutions without legal personality, church bodies, or places of worship Full Name. Address. Number of the document proving legalization by state authorities. Nature and object of the organization's activities. Names of all managers or equivalent. Names or classes of beneficiaries.

4. Beneficial Owner Full Name. Signature. Date of Birth. Nationality. Complete residential address or, if not possible, any other contacts considered valid. Profession and employer, if applicable. Name of the identification document used. Identification Number. Expiry date of the identification document. Issuing entity of the identification document. Nature and amount

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2. Any individual who is the owner of the social capital or voting rights of a legal entity or of the patrimony of a center of collective interests without legal personality, who is notoriously known as having the holder of a high political or public position as the sole beneficial owner. 3 This field should be completed by also filling in the beneficial owner section.