Notice No. 02/2017 of February 3: Foreign Exchange Regulation - Opening and Operation of Deposit Accounts Held by Non-Resident Exchange Entities

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

NOTICE NO. 02/2017

SUBJECT: FOREIGN EXCHANGE REGULATION

• Opening and operation of deposit accounts held by non-resident exchange entities

Considering the current foreign exchange framework, it is necessary to update the rules for opening and operating deposit accounts held by non-resident exchange entities and foreign currency accounts treated as such; Pursuant to the combined provisions of paragraph 4 of Article 9 of Law No. 5/97 of June 27, the Foreign Exchange Law, and Article 40 of Law No. 16/10 of July 15, the Bank of Angola Law.

I DETERMINE:

Article 1.
(Object and Scope)

1. This Notice establishes the rules applicable to the opening and operation of deposit accounts domiciled with national Banking Financial Institutions, held by non-resident exchange entities, denominated in national and foreign currency.
2. For the purposes of this Notice, accounts treated as those held by non-resident exchange entities are considered to be deposit accounts held by resident exchange entities denominated in foreign currency, provided they are funded exclusively by funds from Banking Financial Institutions domiciled abroad, received after the date of entry into force of this instrument.
3. This Notice is not applicable to accounts opened and held by entities covered by Law No. 2/12 of January 13, the Law on the foreign exchange regime applicable to the oil sector, as well as other situations provided for in specific regulation.

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Article 2.
(General Provisions)

1. Natural and legal persons who are non-resident exchange entities may hold and operate accounts in national and foreign currency at Banking Financial Institutions domiciled in Angola, in accordance with the terms defined in Articles 3 and 4 of this Notice.
2. Natural and legal persons who are resident exchange entities wishing to transfer to the country funds deposited at Banking Financial Institutions domiciled abroad may open and operate accounts in foreign currency at Banking Financial Institutions domiciled in Angola, in accordance with the terms defined in Article 4 of this Notice.
3. Natural and legal persons who are resident exchange entities may maintain, simultaneously, separate accounts denominated in foreign currency in accordance with the terms defined in Article 4 of this Notice and in accordance with the provisions of Notice No. 3/09 of June 5.
4. In the opening and operation of accounts, the legal and regulatory requirements in force on the matter must be observed, including those relating to the prevention of money laundering and terrorist financing.

Article 3.
(Operation of national currency accounts held by non-resident exchange entities) National currency accounts held by non-resident exchange entities may only be operated in the following manner:
a) to credit
i. conversion of foreign currency from abroad or from accounts held by non-resident exchange entities in foreign currency;
ii. revenues from economic activity legally exercised in the Country;
iii. remuneration from investments made with the Banking Financial Institution.
b) to debit

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i. domestic transfers;
ii. payment of checks issued against the account;
iii. use of debit cards within national territory;
iv. payment of any charges associated with account maintenance or fund operation.

Article 4.
(Operation of foreign currency accounts)
Foreign currency accounts held by non-resident exchange entities or resident exchange entities covered by this Notice may only be operated in the following manner:
a) to credit
i. funds from outside the country;
ii. remuneration from investments made with the Banking Financial Institution.
b) to debit
i. foreign exchange operations for the purpose of payment to resident exchange entities in national currency;
ii. issuance of payment orders or transfer abroad;
iii. interbank transfers in foreign currency to accounts held by collective resident exchange entities with which a group relationship is maintained;
iv. use of international electronic payment cards or any other payment instruments accepted in the international market within the limit of available balances;
v. payment of any charges associated with account maintenance or fund operation.

Article 5.
(Authorization for service provision)

1. The provision of banking financial services to the entities referred to in paragraphs 2 and 3 of Article 2 of this Notice is subject to specific authorization by the Bank of Angola.
2. In its evaluation, the Bank of Angola must consider, among other factors, the operational capacity of the Banking Financial Institutions and the

CONTINUATION OF NOTICE NO. 02/2017 Page 4 of 4 adequacy of the procedures implemented for the prevention and repression of money laundering and terrorist financing.

Article 6.
(Registration)

1. The operation of foreign currency accounts, subject to this Notice, dispenses with prior licensing with the Bank of Angola, preserving, meanwhile, the obligation to register foreign exchange operations in the specific applications made available by it.
2. The deposit accounts referred to in Articles 3 and 4 of this Notice must have their own nomenclature in the books of authorized Banking Financial Institutions.

Article 7.
(Offenses)
Offenses against the provisions of this Notice are punishable under the terms of the Foreign Exchange Law and the Basic Law of Financial Institutions.

Article 8.
(Doubts and Omissions)
Doubts and omissions resulting from the interpretation and application of this Notice are resolved by the Bank of Angola.

Article 9.
(Revocation)
This Notice revokes paragraph 1 of Article 3 of Notice No. 3/09 of June 5.

Article 10.
(Entry into force)
This Notice enters into force on the date of its publication.

PUBLISH.
Luanda, January 16, 2017.
THE GOVERNOR
VALTER FILIPE DUARTE DA SILVA