Notice No. 20/2012 of April 25

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NOTICE NO. 20/2012 of April 12 Whereas it is incumbent upon the National Bank of Angola (BNA) to define the regulation applicable to foreign exchange operations provided for in Law No. 2/12 of January 13, 2012, the Law on the Foreign Exchange Regime Applicable to the Oil Sector. Whereas it is also the responsibility of the National Bank of Angola to define a schedule for the gradual implementation of that provided in paragraph 2 of Article 6 of said Law. In the exercise of the competence attributed to me under the combined provisions of Article 3 of Law 5/97 of June 27, Foreign Exchange Law, and Articles 17 and 40 of Law No. 16/10 of July 15, the National Bank of Angola Law; I HEREBY DETERMINE: Article 1 (Definitions) For the purposes of this Notice, the definitions set forth in Articles 3 and 4 of Law No. 2/12 of January 13 shall apply. Article 2 (Subject Matter) This Notice establishes the procedures and mechanisms to be adopted in foreign exchange operations inherent to crude oil and natural gas exploration, appraisal, development, and production activities, as provided by Law No. 2/12 of January 13, and defines a schedule for their gradual implementation. Article 3 (Accounts of the National Concessionaire and Investor Companies)

1. The amounts referred to in paragraph 1 of Article 8 of Law No. 2/12 of January 13, on the foreign exchange regime applicable to the oil sector, must be deposited in specific foreign currency accounts at domestic banking financial institutions, effective May 13, 2013.
2. The National Concessionaire and investor companies, national and foreign, must make payments for the supply of goods and services mandatorily through domestic currency and foreign currency accounts opened at domestic banking financial institutions, effective October 1, 2012.
3. Contracts for the supply of goods and services concluded by the National Concessionaire and investor companies, national and foreign, with domestic exchange residents must be settled in the national currency, mandatorily, effective July 1, 2013. Article 4 (Operator's Accounts)
4. The Operator must, in its own name and on behalf of the entities bearing expenses inherent to oil operations, make payments for goods and services supplied mandatorily through domestic currency and foreign currency accounts opened at domestic banking financial institutions.
5. Payments for goods and services supplied to domestic exchange residents must be made, through the operator's accounts held at domestic banking financial institutions, to the supplier entities' accounts at banking financial institutions domiciled in Angola, effective October 1, 2012.
6. The payments referred to in the preceding paragraph must be settled in the national currency effective July 1, 2013.
7. Payments for goods and services supplied to non-domestic exchange residents must be made through the operator's accounts held at domestic banking financial institutions effective October 1, 2013.

Article 5 (Foreign Currency) The foreign currency to be made available by the National Concessionaire and investor companies, national and foreign, to the Angolan financial system must correspond to freely convertible international currencies. Article 6 (Exchange Rate)

1. The exchange rate applied by the BNA in foreign currency purchase operations is the primary market reference buying exchange rate in effect on the transaction date, which is published daily on its website.

2. The exchange rate applied in foreign currency purchase and sale operations by banking financial institutions domiciled in Angola is freely negotiated between the parties. Article 7 (Registration of Foreign Exchange Operations)

3. Foreign exchange operations carried out by the National Concessionaire and investor companies, national and foreign, without prior authorization from the National Bank of Angola, pursuant to Articles 6, 7, and 10 of Law No. 2/12 of January 13, are subject to registration at the BNA in accordance with Articles 9 and 17 of said Law.

4. To comply with the preceding paragraph of this article, banking financial institutions must, on behalf of the National Concessionaire and investor companies, national and foreign, register foreign exchange operations in the Integrated Foreign Exchange Operations System of the National Bank of Angola (SINOC), according to its respective regulations.

5. The initial registration of foreign exchange operations carried out by the National Concessionaire and national investor companies subject to prior authorization from the National Bank of Angola under Law No. 2/12 of January 13, 2012, must be carried out immediately following the granting of authorization by the BNA.

6. The National Concessionaire and national investor companies are required to submit monthly, by the fifth business day of the following month, electronically in Excel format, to the National Bank of Angola/Foreign Exchange Control Department information on the position and flows of foreign currency guarantee accounts, including disbursements and repayments of external debt service, according to the model in Annex I to this Notice, which is an integral part thereof. They are also required to submit quarterly, by the tenth business day of the first month of the following quarter, information on external investment operations, according to the model in Annex II to this Notice, which is an integral part thereof.

7. Without prejudice to the preceding paragraph of this article, banking financial institutions must register these foreign exchange operations in the Integrated Foreign Exchange Operations System of the National Bank of Angola (SINOC), according to their respective regulations.

8. The Operator, on behalf of the entities bearing expenses inherent to oil operations, must submit quarterly, electronically in Excel format, to the National Bank of Angola/Foreign Exchange Control Department, by the tenth business day of the first month of the following quarter, a detailed list of all contracts concluded with non-domestic exchange residents, specifying at least the contracted entity, subject matter, amount, currency, destination country of financial resources, and contract validity period, according to the model in Annex III to this Notice, which is an integral part thereof.

9. While foreign currency payments to domestic exchange residents are permitted and occur, the Operator must also submit quarterly, to the National Bank of Angola/Foreign Exchange Control Department, by the tenth business day of the first month of the following quarter, a list of all contracts concluded with foreign currency payments to domestic exchange residents, with the details indicated in the preceding paragraph and according to the model in Annex III of this Notice. Article 8 (Effective Date Schedule)

10. All foreign exchange operations, whose effective date is not expressly provided for in this Notice, are mandatorily implemented by October 1, 2013.

11. Notwithstanding the implementation dates set forth in Articles 3 and 4 of this Notice, the National Concessionaire and investors, national and foreign, may advance the execution of said acts.

12. For the purposes of the preceding paragraph, the act provided for in paragraph 1 of Article 3 of this Notice is exempted. Article 9 (Offenses) Offenses against the provisions of this Notice are punishable in accordance with Law No. 5/97 - Foreign Exchange Law, of June 27, and Law No. 13/05 - Financial Institutions Law, of September 30. Article 10 (Questions and Omissions) Questions and omissions resulting from the interpretation and application of this Notice are resolved by the National Bank of Angola. Article 11 (Entry into Force) This Notice enters into force on May 12, 2012. PUBLISHED Luanda, April 12, 2012 THE GOVERNOR JOSÉ DE LIMA MASSANO Published in the Official Gazette, First Series – No. 78, of April 25, 2012

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