Notice No. 01/2017 of February 3: Procedures for Securities Market Investments by Non-Resident Entities

Published in the Official Gazette, 1st Series, No. 21, of February 3

NOTICE NO. 01/2017

SUBJECT: CONDUCT OF INVESTMENTS IN THE SECURITIES MARKET BY NON-RESIDENT FOREIGN EXCHANGE ENTITIES

Considering the need to define procedures regarding the application of resources originating from abroad, intended for the conduct of investments by non-resident foreign exchange entities in the securities market;

Under the combined provisions of Articles 17 and 40 of Law No. 16/10 of July 15, the Law of the Banco Nacional de Angola, and Article 28 of Law 05/97 of June 27, the Foreign Exchange Law.

I DETERMINE:

Article 1.
(Object)
This Notice establishes the procedures for conducting investments, capital transfers, interest, dividends, and other income related to securities transactions by non-resident foreign exchange entities, admitted to trading on the Angola Debt and Securities Exchange (BODIVA) and other regulated markets managed by management companies registered with the Capital Markets Commission (CMC).

Article 2.
(Definitions)
For the purposes of this Notice, the following are considered:
a) Regulated market: any multilateral facility or system located or operating in Angola, where the interests relating to securities and derivative instruments are brought together in an organized manner with a view to concluding transactions on them;

CONTINUATION OF NOTICE NO. 01/2017 Page 2 of 5 b) Securities: (i) shares; (ii) bonds; (iii) units in collective investment undertakings; (iv) rights detached from the securities referred to in items (i), (ii), and (iii), provided that the detachment covers the entire issue or series or is provided for in the issuance deed; (v) other documents representing homogeneous legal situations, provided they are capable of being transferred in a regulated market.

Article 3.
(Requirements for securities)

1. Non-resident foreign exchange individuals or legal entities may only conduct investments, using funds originating from abroad, in securities with no maturity or whose maturity is equal to or greater than one year.
2. The transfer, alienation, or assignment of ownership of securities by non-resident foreign exchange entities may only be made in favor of non-resident foreign exchange entities.
3. The provisions of the preceding paragraph do not apply to cases of transfers resulting from merger, incorporation, demerger, and other corporate changes, as well as cases of hereditary succession, having resident foreign exchange entities as beneficiaries, as well as the liquidation of securities or transfers inherent to public acquisition offers.

Article 4.
(Banking Intermediation)

1. Foreign exchange operations related to the conduct of investments in securities by non-resident foreign exchange entities must be conducted through Banking Financial Institutions authorized to operate in the country and registered in a regulated market or a centralized securities system.
2. The operations referred to in the preceding paragraph do not require prior authorization from the Banco Nacional de Angola, but their registration is mandatory within 48 hours, in the manner to be established in specific regulation.

CONTINUATION OF NOTICE NO. 01/2017 Page 3 of 5
3. The movement of foreign currency related to the investments provided for in this Notice must be registered in specific accounts in the name of the non-resident foreign exchange investor or their non-resident intermediary, and said accounts must serve as support only for operations in the securities market.

Article 5.
(Registration of foreign exchange operations)
For the purposes of the registration provided for in paragraph 2 of the previous article, Banking Financial Institutions must ensure that they hold information allowing for the perfect identification of the investor or the non-resident intermediary, as well as the transactions carried out, and must possess at least the following elements:
a) Full name or corporate name of the investor; b) Tax identification number in the country of origin; c) Complete address in the country of residence or headquarters (country, city, locality); d) Confirmation of transfer of funds abroad, namely, the SWIFT number of the operation and the country of origin or destination of the funds; e) Amount and currency of the transaction, with the respective specification (import of capital, transfer of invested funds, interest or dividends).

Article 6.
(Transfer of invested funds and respective income)

1. The transfer abroad of funds invested under this Notice may be conducted by Banking Financial Institutions, upon presentation of the following elements:
   a) Copy of the Revenue Collection Document (DAR) or proof evidencing the withholding of tax charges inherent to the transaction; b) Proof of alienation of the securities, in accordance with the rules in force in the regulated market.
2. For the transfer of interest, dividends, and other income resulting from the invested funds, the following elements must be presented to the Banking Financial Institutions:
   a) Copy of the Revenue Collection Document (DAR) or proof evidencing the withholding of tax charges inherent to the transaction;

CONTINUATION OF NOTICE NO. 01/2017 Page 4 of 5 b) Certificate of the value to be transferred, namely, coupon, statement, or receipt issued by the Angola Securities Central or the Banking Financial Institution.

Article 7.
(Duty of Verification)

1. Banking Financial Institutions and other intervening entities must ensure compliance with the applicable legislation in force before conducting any requested operation.
2. It is the duty, in particular, of Banking Financial Institutions to verify all material and formal requirements inherent to the operations conducted within the scope of this Notice.

Article 8.
(Duty of Information and Archiving)

1. Banking Financial Institutions are obliged to create an archive containing all information related to the operations they conduct on behalf of non-resident entities, in accordance with the law in force.
2. The non-resident entity must provide its Banking Financial Institutions with all indispensable proof elements for the correct conduct of the operation, when requested.

Article 9.
(Offenses)
Offenses against the provisions of this Notice are punishable under Law No. 5/97 of June 27, the Foreign Exchange Law, and Law No. 12/15 of June 17, the Law of Bases of Financial Institutions.

Article 10.
(Doubts and Omissions)
Doubts and omissions resulting from the interpretation and application of this Notice are resolved by the Banco Nacional de Angola.

CONTINUATION OF NOTICE NO. 01/2017 Page 5 of 5
Article 11.
(Revocation)
Notice No. 4/05 of December 30 is revoked, as well as all other regulation that contradicts the provisions established in this Notice.

Article 12.
(Entry into Force)
This Notice enters into force thirty (30) days after the date of its publication.

PUBLISH.

Luanda, January 16, 2017.

THE GOVERNOR
VALTER FILIPE DUARTE DA SILVA