Instruction No. 01/2019 of January 3

INSTRUCTION NO. 01/2019 of January 3
ASSUNTO: PAYMENT SYSTEM

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

Given the need to implement risk containment processes in the subsystems of the Automated Clearing House of Angola (CCAA) and to define penalties for non-compliance regarding the establishment and use of guarantees for balance settlement in CCAA subsystems; Considering, equally, 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 Payment System of Angola (SPA); In exercise of the competence conferred upon me under the combined provisions of Article 7.º of Law No. 5/05, dated July 29 – Payment System Law, and Article 51.º of Law No. 16/10, dated July 15 – National Bank of Angola Law; I DETERMINE:

1. Guarantees for Settlement of Debtor Positions
   1.1. The settlement of debtor positions of participants in the subsystems of the Automated Clearing House of Angola (CCAA), corresponding to the sum of their respective clearing balances, must be secured by guarantees.
   1.2. The guarantees are established by each participant, in accordance with the provisions of this Instruction and complementary regulation.
   1.3. The value of guarantees for the Credit Transfer Subsystem (STC), Check Clearing Subsystem (SCC) and Direct Debits Subsystem (SDD) must always be equal to or greater than the maximum amount permitted for debtor positions referred to in point 1.1.
   1.4. The CCAA operator must ensure that payment instructions from the SCC, STC and SDD determining a debtor position greater than the guarantee established by the paying participant are not accepted for clearing.
   1.5. In the Multicaixa (MCX) subsystem, debtor balances greater than the provided guarantee may be admitted; in this case, the participant must fund the settlement account with sufficient funds to settle the amount calculated during clearing. This action must occur by 12:00 hours on the settlement day.
   1.6. To comply with the preceding point, participants whose debtor position exceeds the provided guarantee may fund the settlement account by taking liquidity from the Interbank Money Market (MMI) or through the National Bank of Angola's Liquidity Lending Facilities (Intraday or Overnight).

2. Composition
   2.1. The guarantees consist of funds deposited in a specific reserve account to settle cleared balances in the SPTR.
   2.2. The funds deposited in the SPTR account referred to in the preceding point do not count towards compliance with Mandatory Reserves.

3. Establishment of Guarantees for STC, SCC and MCX
   Each participant must establish a specific guarantee for the STC and SCC, and another specific guarantee for the MCX, both with a value equal to or greater than the result of applying the following formula:

G_min_P = Max(k × A, G_m)
Where:
− G_min_P = minimum guarantee by participant P; − Max(k × A, G_m) = maximum between k × A and G_m; − k = multiplier factor; − A = maximum debtor balance of participant P, in the reference period (to be defined by Directive) resulting from the sum of balances of clearing subsystems covered by the guarantee; − G_m = absolute minimum value for the guarantee of any participant.

4. Establishment of Guarantees for SDD
   Each Participant must establish a specific guarantee for the SDD with a value equal to or greater than the result of applying the following formula:
   G_min_P = Max(k × B, G_m)
   Where:
   − G_min_P = minimum guarantee by participant P; − Max(k × B, G_m) = maximum between k × B and G_m; − k = multiplier factor; − B = maximum debtor balance of participant P in the reference period (to be defined by Directive), resulting from the sum of Direct Debit Instructions (DDI) for each day of the reference period; − G_m = absolute minimum value for the guarantee of any participant.

5. Penalty for Non-Compliance with Establishment and Use of Guarantees
   Upon opening a clearing session, whenever the participant has a guarantee lower than the mandatory minimum, calculated with reference to points 2 and 3 of this Instruction, the participant is penalized by the amount resulting from the following formula:
   V_P = Max (x% × (G_min_P − G_actual_P); V_m)
   Where:
   − V_P = value of the penalty applicable to participant P; − Max (x% × (G_min_P − G_actual_P); V_m) = maximum between ‘x% × (G_min_P − G_actual_P)’ and V_m; − x% = multiplier factor; − G_min_P = minimum guarantee to which participant P is obligated; − G_actual_P = actual guarantee established by participant P; − V_m = absolute minimum value for the penalty of any participant in an identical situation.

6. Reinforcement of Guarantee Lower than Mandatory Minimum
   6.1. In situations where the actual guarantee established by the participant is lower than the minimum, whenever operationally feasible, namely considering the operating hours of the SPTR and the existence of available funds in the participant's settlement account (PSA), the CCAA operator is authorized to debit the PSA, crediting its respective reserve account for clearing balance settlement up to the amount of the minimum guarantee.
   6.2. The provisions of the preceding point do not exempt the non-compliant participant from the penalty provided for in number 5 of this Instruction.

7. Settlement Failure
   7.1. Whenever a check cannot be cleared due to insufficient guarantee provided by the debited participant, it is subject to the following penalty:
   − On the first day the check is not cleared – Pc; − On the second day the check is not cleared – 2 × Pc.
   Where:
   Pc = Value corresponding to the penalty per check; 2xPc = Value corresponding to the penalty per check, multiplied by 2, due to recurrence of non-compliance (second day).
   7.2. The value Pc is applicable to each check that cannot be cleared and is independent of its issuance value, being defined in complementary regulation.

8. Settlement of Penalties
   The settlement of penalties must be carried out daily, with reference to the previous business day, through the Credit Transfer Subsystem (STC) Interbank Fee Clearing file, in favor of the National Bank of Angola.

9. Operational Rules
   9.1. The guarantee management process, namely the communication of minimum values to participants and their use in the clearing process, must be contained in a specific document prepared by the CCAA operator, which is common to subsystems covered by the guarantee and approved by the National Bank of Angola.
   9.2. The provisions of the preceding point do not prejudice references that may be necessary in the Standards and Procedures Manuals of other systems, namely SPTR and SIGMA, due to functionalities they must provide, namely in the creation, valuation, alteration and use of guarantees.
   9.3. The validity period of the guarantee and the reference period to determine the maximum debtor balance of each participant are defined in complementary regulation.
   9.4. The values of parameters k and G_m defined in points 3 and 4 of this Instruction, as well as the values of parameters x% and V_m defined in point 5 of this Instruction, are defined in complementary regulation.

10. Exclusions
    Considering the nature of operations of the Ministry of Finance, namely the payment of public sector salaries and state payments to suppliers, it is not subject to establishing a minimum guarantee, and must process payments based on the provided guarantee, i.e., the values made available in the reserve subaccount - CCAA of the CUT for this purpose.

11. Adaptation of Subsystems
    The CCAA operator must ensure compliance with this Instruction within a maximum period of 30 (thirty) days after its entry into force.

12. Non-Compliance
    Non-compliance with the provisions of this Instruction constitutes an offense provided for and punishable under Law No. 05/05, dated July 29, Payment System Law of Angola.

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

14. Revocation
    Instruction No. 06/15, dated May 26 and Instruction No. 03/16, dated April 25 are revoked, as well as any regulation that contradicts the provisions of this Instruction.

15. Entry into Force
    This Instruction enters into force on the date of its publication.

PUBLISH
Luanda, January 3, 2019
THE GOVERNOR
JOSÉ DE LIMA MASSANO