Notice 01/2021 (February 12) on the Credit Risk Information Center

PUBLISHED IN THE OFFICIAL GAZETTE, 1ST SERIES, NO. 28, OF FEBRUARY 12 NOTICE NO. 01/2021 SUBJECT: FINANCIAL SYSTEM - Credit Risk Information Center

Whereas it is necessary to expand the entities subject to the obligation of reporting to the Credit Risk Information Center (CIRC) of the Banco Nacional de Angola, and consequently, having access to the information centralized in this center; Pursuant to the competence conferred upon me by item f) of paragraph 1 of Article 51 of Law No. 16/10, dated July 15 - Law of the Banco Nacional de Angola, and by the combined provisions of Article 21 of the same Law and Article 81 of Law No. 12/15, dated June 17 - Basic Law of Financial Institutions. I DETERMINE:

Article 1. (Subject Matter)
This Notice establishes the operating rules of the Credit Risk Information Center, hereinafter referred to as “CIRC”.

Article 2. (Definitions)
For the purposes of this Notice, the following terms are understood as:
a) Guarantor (Avalist): an individual or legal entity that assumes the formal commitment to pay the outstanding amount, should the borrower (debtor) fail to make any payment under the guaranteed credit. b) Client: an individual or legal entity that:
i. Has assumed towards the Institution, as borrower, guarantor (avalist), or surety, an actual or potential credit liability;
ii. Issues checks on an account domiciled at the Institution.
c) Credit Guarantee Fund: a legal entity, endowed with legal personality and administrative and financial autonomy, authorized to provide guarantees and counter-guarantees to other Institutions exercising credit granting and management functions. d) Surety (Guarantor): an individual or legal entity that provides a guarantee or surety regarding the fulfillment of an obligation to be performed by the credit borrower. e) Level of Liability: identifies the capacity in which an individual or legal entity participated in an operation, namely as borrower, guarantor (avalist), or surety. f) Credit Liability: the sum of actual and potential liability, as applicable. g) Actual Credit Liability: the liability of a credit borrower for the value of utilized contracted amounts, or of a guarantor (avalist) or surety when the borrower defaults on paying their liabilities. h) Potential Liability: the liability of a credit borrower, guarantor (avalist), or surety for the unutilized value of a contracted credit representing an obligation on the part of the Institution. i) Credit Risk: risk arising from the default of contractually established financial commitments or of a counterparty in operations.

Article 3. (The Credit Risk Information Center)
The CIRC is a database managed by the Banco Nacional de Angola, with the following objectives:
a) To centralize information on credit liabilities contracted with Institutions or Financial Companies, actual and/or potential, arising from credit operations benefiting individuals, legal entities, or equivalent persons, as borrowers, guarantors (avalists), or sureties; b) To centralize information regarding checks presented without sufficient funds; c) To make available the collected information to national Financial Institutions, for client risk assessment in credit granting or determining financial capacity, attitude, and behavior towards the financial system; d) To provide information for credit risk assessment studies and financial system statistics, which may be disseminated as approved by the Banco Nacional de Angola.

Article 4. (Participating Entities in the CIRC)

1. Participating entities are obligated to report to the Banco Nacional de Angola the information referred to in Article 5 of this Notice.
2. Participating entities are all Institutions and Financial Companies exercising credit granting and/or management functions, namely:
   a) Banking Financial Institutions; b) Non-Banking Financial Institutions, namely:
   i. Credit Cooperatives;
   ii. Financial Assignment Companies;
   iii. Leasing Companies;
   iv. Microcredit Companies;
   v. Microfinance Institutions;
   vi. Payment service providers granting credit under the Payments System Law;
   vii. Credit Guarantee Fund;
   viii. Credit Guarantee Companies.
   c) Companies whose corporate object, under item j) of paragraph 1 of Article 7 of Law No. 12/15, dated June 17, Basic Law of Financial Institutions, is granting credit or providing guarantees, as well as credit recovery and management.
3. For the purposes of the preceding paragraph, the definitions of Banking and Non-Banking Financial Institutions established in Law No. 12/15, dated June 17, Basic Law of Financial Institutions, apply.

Article 5. (Reporting of Information to the Banco Nacional de Angola)
Participating entities must report to the Banco Nacional de Angola, in accordance with the relevant Instruction, the following information:
a) Position of credit operations, actual or potential, and their risks by liabilities assumed by any individual or legal entity, borrowers, guarantors (avalists), or sureties; b) Checks presented without sufficient funds for the second time; c) Guarantees accepted under Notice No. 10/2014, dated December 10, on Guarantees for Prudential Purposes; d) Guarantees and counter-guarantees issued by the Credit Guarantee Fund; e) Guarantees issued by Credit Guarantee Companies; and, f) Other liabilities assumed by Institutions, under item c) of paragraph 1 of Article 4 of this Notice.

Article 6. (Liability for Reported Information)
The information contained in the CIRC is entirely the responsibility of the Participating Entities that provided it, with these entities responsible for making any necessary subsequent alterations or corrections, in accordance with the relevant Instruction.

Article 7. (Provision of Information by the Banco Nacional de Angola)

1. Information centralized in the CIRC may not be used for purposes other than those referred to in Article 3 of this Notice.
2. Information provided by the CIRC to Participating Entities must not contain the name of the Institution that granted the credit.
3. Information provided by the Banco Nacional de Angola for statistical purposes may only be aggregated information, and under no circumstances may the names of borrowers, guarantors (avalists), or sureties be disclosed to entities other than the Participating Entities.
4. Information contained in the CIRC is subject to the duty of confidentiality, under the Data Protection Law.

Article 8. (Access to Information Centralized in the CIRC)

1. The Banco Nacional de Angola makes the information centralized in the CIRC available only to Participating Entities, with these entities responsible for making it available to their clients.
2. The Banco Nacional de Angola defines in specific regulation the terms and conditions for access to CIRC information by Participating Entities, as well as the procedures they must follow in making information available to borrowers, guarantors (avalists), and sureties.
3. Borrowers, guarantors (avalists), and sureties have the right to know what information concerning them is recorded in the CIRC, and accordingly, if they need to obtain information about their registered liabilities, must contact one of the participating entities with which they contracted, guaranteed, or avalized a credit.
4. If they verify inaccuracies in the information recorded in the CIRC concerning them, they must request its correction in writing from the Participating Entity responsible for the incorrect record.

Article 9. (Cost Participation)
The Banco Nacional de Angola may establish in specific regulation the collection of commissions on information provided to Participating Entities.

Article 10. (Penalties)
Violation of the provisions of this Notice is punishable under Law No. 12/15, dated June 17 - Basic Law of Financial Institutions, and other complementary legislation.

Article 11. (Repeal)
All provisions contrary to this Notice are repealed, notably Notice No. 04/2020, dated February 28, on the Credit Information and Risk Center.

Article 12. (Questions and Omissions)
Questions and omissions arising from the interpretation and application of this Notice are resolved by the Banco Nacional de Angola.

Article 13. (Entry into Force)
This Notice enters into force on the date of its publication.

PUBLISH.
Luanda, on February 9, 2021.
THE GOVERNOR JOSÉ DE LIMA MASSANO