Regulatory Alerts2022-02-03
Circular Letter No. 01/DCF/2022, dated February 3
The National Bank of Angola requires Banking Financial Institutions to suspend client operations and promptly notify judicial authorities when suspecting Ponzi, Pyramid, or Multi-Level Marketing schemes. Responding to consumer complaints about high-profit investment solutions held in domestic bank accounts, the directive mandates immediate written notification of suspicion factors to clients and ensures legal compliance within existing regulatory limits. This measure safeguards legitimate client expectations by establishing clear procedural obligations for financial institutions handling potentially fraudulent investment structures.
CIRCULAR LETTER NO. 01/DCF/2022 SUBJECT: FINANCIAL SYSTEM
- Procedures to be adopted in case of suspicion of Ponzi, Pyramid, Multi-Level Marketing or other analogous schemes Whereas, in accordance with the combined provisions of Articles 128 and 129 of Law No. 14/21, dated May 19 – the General Regime of Financial Institutions Law, and Article 4(a) of Notice No. 12/16, dated September 5, regarding the protection of consumers of financial products and services, Banking Financial Institutions must equip their organizations with the necessary technical means to deliver their services under appropriate quality and efficiency conditions, acting with prudence and diligence, mindful of the entrusted interests, so as not to frustrate the legitimate expectations of their clients; Whereas, likewise, the National Bank of Angola has received inquiries and complaints from consumers of financial products and services regarding alleged investment solutions promising substantial profits, involving bank deposit accounts domiciled at Financial Institutions in the national market; Given the need to observe the principle of legality in procedures adopted by financial institutions in operations constituting Ponzi, Pyramid, Multi-Level Marketing or other analogous schemes, the National Bank of Angola determines that, within the limits imposed by current regulations, Banking Financial Institutions must: a) Refrain from executing client operations whenever there is suspicion that they involve Ponzi, Pyramid, Multi-Level Marketing or other analogous schemes; b) Immediately inform the client in writing of the factors giving rise to suspicion that lead to non-execution of the operation;
c) Promptly notify the competent judicial authorities to initiate the corresponding proceedings. For additional clarification, Commercial Banks must contact the National Bank of Angola via the electronic address dcf@bna.ao. This Circular Letter enters into force on the date of its publication. Luanda, February 3, 2022. FINANCIAL CONDUCT DEPARTMENT
Osvaldo Pedro dos Santos Director