Notice No. 01/2011 of May 26

BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

NOTICE NO. 01/2011 of May 26

In accordance with the provisions of the United Nations Convention against Transnational Organized Crime (Palermo Convention) of 2000, approved by the National Assembly through Resolution No. 21/10 of June 22, as well as other conventions that may be approved;

Considering the entry into force of Law No. 12/10 of July 9, which establishes preventive and repressive measures to combat money laundering and terrorist financing;

Considering international best practices in the prevention of money laundering and terrorist financing;

Considering that one of the essential components of the system for preventing and repressing money laundering and terrorist financing consists in the implementation of customer identification procedures [Know Your Customer ("KYC") and Know Your Business ("KYB") policies], and taking into account that these policies imply the establishment of adequate internal controls and procedures that enable banking financial institutions to know their customers;

There being a need for banking financial institutions to carry out identification and due diligence measures [Customer Due Diligence ('CDD')] in order to know their customers, not only regarding their identification, but also, in relation to legal entities, their structure and economic activity, taking into account the type of financial products and services acquired, as well as transactions carried out;

Furthermore, considering that identification and due diligence procedures allow banking financial institutions to identify and mitigate the risks of money laundering and terrorist financing that their clients may represent, and considering that the degree of

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

due diligence depends on the risk of each client, as they require enhanced due diligence measures or simplified due diligence measures;

Taking into account that, in light of the above, it is imperative to define the necessary requirements for establishing business relationships and in the context of occasional transactions, adapting them to the new identification and customer knowledge requirements and business relationship monitoring imposed by reasons of legal certainty and prevention of the use of the financial system for illicit purposes, aiming, in particular, to protect consumers of financial products and services from the fraudulent use of their identity, as well as to safeguard the integrity of said system.

Attentive to the purpose of regulating the requirements that, from a strictly banking perspective, must be met in establishing the business relationship, namely account opening, regardless of the fulfillment of additional obligations, of a fiscal, civil, or other nature, to which institutions are subject.

Under 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 - Law of the National Bank of Angola, conjugated with Article 70 of Law No. 13/05 of September 30 - Law of Financial Institutions;

DETERMINES:

CHAPTER I
General Provisions

Article 1.
Object

This Notice regulates the obligations provided for in Law No. 12/10 of July 9, namely the obligations of identification and due diligence, as well as the establishment of a system for preventing and repressing money laundering and combating terrorist financing, including the creation of the Compliance Officer in the organizational structure of banking financial institutions.

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

Article 2.
Scope

The addressees of the norms contained in this Notice are banking financial institutions under the supervision of the National Bank of Angola.

Article 3.
Definitions

Without prejudice to the definitions established in Article 2 of Law No. 12/10 of July 9 - Law on Combating Money Laundering and Terrorist Financing, for the purposes of this Notice, the following are understood:

1. Correspondent Bank - Financial institution that establishes a partnership agreement with another financial institution for it to represent;
2. Client - natural person, legal entity, or any other legal entity with which the banking financial institution establishes or has established a business relationship or carries out an occasional transaction;
3. Compliance Officer - person responsible for implementing and monitoring the system for preventing and repressing money laundering and combating terrorist financing and their respective internal control mechanisms and procedures, also being responsible for centralizing information and reporting operations susceptible to money laundering and terrorist financing to the Financial Information Unit and other competent authorities;
4. Suspicious Operations - operations susceptible to constituting the crime of money laundering or terrorist financing;
5. Non-profit Organizations - legal entity or organization that is fundamentally dedicated to the creation and/or distribution of funds for non-profit purposes, namely, charity, social solidarity, religious purposes, among others;
6. Politically Exposed Persons (PEPs) - foreign natural persons 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. For the purposes provided for in this law, the following are considered:

a) High-ranking political or public offices:

i) Head of State;

ii) Head of Government;

iii) Members of the Government, namely ministers, vice-ministers, and secretaries of state;

iv) Deputies or members of parliamentary chambers;

v) Magistrates of superior courts and other high-level judicial bodies, whose decisions cannot be appealed, except in exceptional circumstances;

vi) Members of administrative and supervisory bodies of central banks;

vii) Heads of diplomatic missions and consular posts;

viii) High-ranking officers of the Armed Forces and Police;

ix) 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 business and local sectors;

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

x) Members of the executive bodies of International Law organizations.

b) Close family members:

i) Spouse or persons with whom they are in a de facto union;

ii) Parents, children, and their respective spouses or persons with whom they are in a de facto union.

c) Persons known to have corporate or commercial relations with them:

i) any natural person who is notoriously known as a joint owner with the holder of a political or public office of a legal entity, a center of collective interests without legal personality, or who has close commercial relations with it;

ii) any natural person who is the owner of the share capital or voting rights of a legal entity or of the assets of a center of collective interests without legal personality, who is notoriously known as having the holder of the high political or public office as the sole effective beneficiary.

7. Private Banking - specialized service provided by banking financial institutions to clients with high net worth;
8. Representative - any person or entity with legal powers to act on behalf of another;
9. Foreign Exchange Resident and Non-Resident:

a) foreign exchange resident - foreign exchange residents in national territory are considered:

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

i. natural persons who have their habitual residence in the country;

ii. legal entities with headquarters in the country;

iii. branches, subsidiaries, agencies, or any forms of representation in the country of legal entities with headquarters abroad;

iv. funds, institutes, and public bodies endowed with administrative and financial autonomy, with headquarters in national territory;

v. national citizens, diplomats, consular representatives, or equivalent, exercising functions abroad, as well as members of their families;

vi. national natural persons whose absence abroad for a period greater than 90 days and less than 1 year originates from study reasons or is determined by the exercise of public functions.

b) foreign exchange non-resident - foreign exchange non-residents in national territory are considered:

i. natural persons with habitual residence abroad;

ii. legal entities with headquarters abroad;

iii. natural persons who emigrate;

iv. natural persons who leave the country for a period greater than 1 year;

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

v. branches, subsidiaries, agencies, or any forms of representation in foreign territory, of legal entities with headquarters in the country;

vi. diplomats, consular representatives, or equivalent acting in national territory, as well as members of their families.

CHAPTER II
Identification and Due Diligence Procedures

Section I
Customer Identification

Article 4.
Obligation of Customer Identification

1. The identification obligations provided for in Article 5 of Law No. 12/10 of July 9 - Law on Combating Money Laundering and Terrorist Financing - must be adopted by banking financial institutions regarding their clients, their respective representatives, beneficial owners, and, where applicable, other interveners in the transactions.

2. The aforementioned identification obligations 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.

Article 5.
Establishment of Business Relationship

1. Banking financial institutions must collect and conserve information regarding clients, their representatives, and beneficial owners, before the start of the business relationship, and must request, at minimum, the following elements:

a) Natural Persons:

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

i. full name and signature;

ii. date of birth;

iii. nationality;

iv. full address of residence or, if not possible, any other contacts considered valid by the banking financial institution;

v. profession and employer, if any;

vi. name of the identification document used, identification number, expiration date, and issuing entity;

vii. nature and amount of income;

viii. Tax Identification Number (optional).

b) Legal Entities:

i. full corporate name of the legal entity;

ii. corporate object and business purpose;

iii. headquarters address;

iv. Tax Identification Number (NIF);

v. commercial registry registration number;

vi. identity of holders of participations in the capital and voting rights of the legal entity of value equal to or greater than 20%;

vii. identity of the legal entity's attorneys and respective mandate;

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

c) in accounts held by merchants in their individual name, the respective opening form must contain the Tax Identification Number (NIF), the corporate name, the headquarters, and the corporate object, in addition to the identification elements referred to in item a) of paragraph 1 of this article;

d) in accounts held by condominiums of real estate under horizontal property regime and autonomous patrimony, contracted under general legislation, the regime provided for in item b) of paragraph 1 of this article applies, with the necessary adaptations;

e) in commercial companies in the process of constitution, the opening and movement of accounts is regulated by applicable legislation.

2. The verification of the information must be proven, by presenting the following valid documents:

a) Natural Persons:

i. the identification elements mentioned in points i), ii), and iii), item a) of paragraph 1 of this article must be verified as follows:

• by foreign exchange residents by presenting the identity card or resident card issued by the competent authority, containing photograph, full name, date of birth, and nationality;

• by foreign exchange non-residents by presenting the passport, except for foreign exchange non-residents of Angolan nationality by presenting an identity card, containing photograph, full name, date of birth, and nationality.

ii. the full address of residence, the profession, the respective employer when it exists, must be proven through any document, means,

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

or diligence considered valid, suitable, and sufficient to demonstrate the information provided;

iii. the identification element mentioned in point viii) of item a) of paragraph 1 of this article must be verified by presenting the tax identification card or equivalent issued by the National Directorate of Taxes of the Ministry of Finance.

b) Legal Entities:

i. regarding resident legal entities, the identification elements mentioned in points i), ii), iii), and v) of item b) of paragraph 1 of this article, must be verified by presenting the commercial registry certificate issued by the Commercial Registry Office or another public document proving it, namely the copy of the Official Gazette containing the publication of the statutes or notarial certificate of the deed of constitution;

ii. regarding non-resident legal entities, the identification elements mentioned in points i), ii), and iii) of item b) of paragraph 1 of this article, must be verified by presenting proof of commercial registration or another valid public document, duly certified by the competent entities of the country of residence, and authenticated by the Angolan consular representation in the country of origin;

iii. the identification element mentioned in point iv) of item b) of paragraph 1 of this article must be verified by presenting the Tax

Identification Card or equivalent issued by the National Directorate of Taxes of the Ministry of Finance;

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

iv. the identification elements mentioned in point vi) of item b) of paragraph 1 of this article, must be proven by presenting the Minutes of the Constituent General Assembly as well as the minutes of alteration to the shareholder or partner structure;

v. the identification element mentioned in point vii) of item b) of paragraph 1 of this article must be proven by a written declaration issued by the legal entity itself, containing the names of the holders of the management body, attorneys, and representatives.

c) in establishing the business relationship in the name of minors who, due to their age, are not holders of any of the documents referred to in item a) of paragraph 2 of this article, the proof of the respective identification elements of the minor must be carried out by exhibiting a personal card or, in the case of non-nationals, an equivalent public document, to be presented by whoever demonstrates legitimacy to contract the opening of the account. Additionally, the identity of the legal representative of the minor must be verified when establishing the business relationship.

Article 6.
Moment of Identity Verification

Without prejudice to the provisions of the previous article, the verification of the identity of the client, representative, or beneficial owner by banking financial institutions may be carried out after the start of the business relationship, provided that:

a) the risk of money laundering and terrorist financing is reduced;

b) it occurs in the shortest possible time;

c) it is essential not to interrupt the normal course of business, in the following circumstances, namely:

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

i. transactions carried out without the physical presence of the client;

ii. securities transactions.

d) the financial institution adopts a risk management process that defines the conditions under which late verification may occur, including:

i. limitation of the number, type, and/or value of transactions to be carried out at a time prior to identity verification;

ii. enhanced monitoring of the business relationship between the moment of its establishment and the identity verification.

e) the contrary does not result from legal or regulatory provision.

Article 7.
Occasional Transactions

1. The banking financial institution must collect and conserve information whenever, in person or remotely, a client intends to carry out occasional transactions whose amount, in national currency, is equivalent to more than USD 15,000.00 (fifteen thousand United States Dollars), regardless of whether the transaction is carried out through a single operation or through several operations that appear to be related.

2. The obligations mentioned in paragraph 1 of this article are not applicable when the transaction occurs within the scope of a business relationship that the banking financial institution already maintains with its clients.

3. At minimum, the following identification elements mentioned in paragraph 1 of Article 5 and their respective proof documents contained in paragraph 2 of the same article of this Notice must be required from the person or entity intending to carry out the

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

transaction, and where applicable to their representatives and beneficial owners, namely:

a) natural persons: elements provided for in item a), i), ii), iii), and vi) of paragraph 1 of Article 5;

b) legal entities: elements provided for in item b), i), iv), vi), and vii) of paragraph 1 of Article 5;

c) merchants in individual name: elements provided for in items a) and b) of this article;

d) condominiums of real estate under horizontal property regime and autonomous patrimony: elements provided for in item b) of this article.

4. If the carrying out of an occasional transaction in the name of minors who, due to their age, are not holders of any of the documents referred to in item a) of paragraph 2 of Article 5 of this Notice is requested, the proof of the respective identification elements of the minor must be carried out by exhibiting a personal card or, in the case of non-nationals, an equivalent public document, to be presented by whoever demonstrates legitimacy to contract the opening of the account. Additionally, the identity of the legal representative of the minor must be verified when carrying out the occasional transaction.

Article 8.
Mechanisms for Identifying the Beneficial Owner

In accordance with the provisions of paragraph 1 of Article 5 of this Notice, the appropriate means of determining the identity of the beneficial owner include, namely:

a) authenticated document confirming the identity of the beneficial owner;

b) copy of the trust agreement or partnership agreement, or other equivalent document;

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

c) minutes of the Constituent General Assembly as well as the minutes of alteration to the shareholder or partner structure;

d) other reliable information, which is publicly available and which the banking financial institution considers relevant.

Section II
Duties of Due Diligence

Article 9.
Duty of Continuous Monitoring

1. Within the scope of the obligation provided for in item c) of Article 7 of Law No. 12/10 of July 9, for the purposes of continuous monitoring of the business relationship, depending on the client's risk assessment, the following information must be requested:

a) nature and details of the business, occupation, or employment;

b) record of changes of domicile;

c) origin of the funds to be used in the business relationship;

d) origin of initial and continuous income;

e) the various relationships between signatories and their respective beneficial owners.

2. The banking financial institution, whenever it deems necessary, may request additional information from clients, in light of the transactions carried out by them and the risk assessment performed, such as the Annual Report and Accounts, among others.

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BANCO NACIONAL DE ANGOLA

GOVERNOR'S OFFICE

Section III
Duties of Simplified Due Diligence

Article 10.
Simplified Due Diligence Procedures

1. In accordance with the terms of paragraph 2 of Article 9 of Law No. 12/10 of July 9, banking financial institutions must collect sufficient information to verify if the client falls into one of the following categories:

a) The State, or a public law legal entity, of any nature, integrated into central, provincial, or local administration;

b) authority or public body subject to transparent accounting practice and subject to supervision;

c) entity that provides postal services.

2. Banking financial institutions must demonstrate to the National Bank of Angola, if it so deems, the verification of the inclusion of clients in the aforementioned categories.

3. The banking financial institution must define criteria to determine if the collected information is sufficient to verify that the client falls into one of the aforementioned categories or professions, namely, the existence of publicly available information that confirms their identity.

Section IV
Duties of Enhanced Due Diligence

Article 11.
Politically Exposed Persons

In addition to the identification and due diligence duties provided for in the previous Sections of this Chapter and in accordance with the provisions of paragraphs 1, 2, 4, and 5 of Article 10 of Law No. 12/10 of July 9, banking financial institutions must ensure that:

a) information regarding processes and procedures for identification related to PEPs is communicated to banking financial institution employees for whom it is relevant;

b) the aforementioned processes and procedures are part of the training program for the prevention of money laundering and terrorist financing of banking financial institutions;

c) due diligence procedures are adapted to each concrete case, taking into account a risk-based assessment of the services or products acquired, individual circumstances, origin and amount of the client's funds;

d) the establishment of business relationships with PEPs depends on the prior authorization of the management body of the banking financial institution.

Article 12.
Correspondent Banking

1. In addition to the identification and due diligence duties provided for in the previous Sections of this Chapter and in accordance with the provisions of paragraphs 1 and 2 of Article 10 and Article 23 of Law No. 12/10 of July 9, the Correspondent Bank must define measures of d

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