Notice No. 04/2020 of 28 February

PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 22, OF 28 FEBRUARY NOTICE NO. 04/2020 SUBJECT: FINANCIAL SYSTEM

• Credit and Risk Information Center (CIRC)

Whereas it is necessary to centralize information regarding credit risk and ensure an effective operating system for the Credit and Risk Information Center (CIRC), granting it greater reliability and consequent incentive for its use by Financial Institutions and their clients; Pursuant to the combined provisions of Article 21 of Law No. 16/10, dated July 15 – National Bank of Angola Law, and Article 81 of Law No. 12/15, dated June 17 – Financial Institutions Framework Law; In the exercise of the competence conferred by paragraph f) of number 1 of Article 51 of Law No. 16/10, dated July 15 – National Bank of Angola Law;

I HEREBY DETERMINE:

Article 1.
(Subject Matter)

1. The Credit and Risk Information Center (CIRC) service aims to manage, control, and monitor the submission of information provided by Financial Institutions regarding credit operations.
2. The Credit and Risk Information Center shall:
   a) Centralize and disseminate information regarding credit operations, represented by actual and potential liabilities assumed towards Financial Institutions and their clients;

CONTINUATION OF NOTICE NO. 04/2020 Page 2 of 6 b) Centralize and disseminate information regarding checks presented without sufficient funds; c) Provide information to assist in risk assessment for credit granting by institutions; and, d) Serve as custodian of the information referred to in paragraphs a) and b), thereby contributing to credit risk assessment studies and statistics.

Article 2.
(Scope)

1. This Notice applies to all Institutions exercising credit granting and management functions, namely:
   a) Banking Financial Institutions; b) Non-Banking Financial Institutions, specifically:
   i. Credit cooperatives;
   ii. Factoring companies;
   iii. Leasing companies;
   iv. Microcredit companies;
   v. Microfinance institutions;
   vi. Credit guarantee fund; and,
   vii. Credit guarantee companies.
   c) Companies whose corporate purpose is the recovery and management of credit, pursuant to paragraph j) of number 1 of Article 7 of Law No. 12/2015, dated June 17, Financial Institutions Framework Law.
2. For the purposes of the preceding number, definitions and criteria for Banking and Non-Banking Financial Institutions apply, as established by Law No. 12/15 of June 17, Financial Institutions Framework Law.
3. Branches in Angola of Institutions with headquarters abroad are also subject to the scope of this Notice.

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Article 3.
(Definitions)
Without prejudice to the definitions established in Law No. 12/15 of June 17, Financial Institutions Framework Law, for the purposes of this Notice, the following are understood as:
a) Credit and Risk Information Center (CIRC): an information system managed by the National Bank of Angola, consisting of:
i. Information received from Institutions regarding actual and potential liabilities arising from credit operations;
ii. Information received from Institutions regarding checks presented at Institutions without sufficient funds, for the second time; and,
iii. A set of services related to their processing and dissemination.
b) Credit Guarantee Fund: a legal entity with juridical personality and administrative and financial autonomy, authorized to provide guarantees and counter-guarantees to other Institutions exercising guarantee, granting, and management functions. c) Actual Credit Liability: a credit client's liability in the situation where contracted amounts have been utilized. d) Potential Liability: a credit client's liability in the situation where contracted amounts have not yet been utilized, representing commitments by the institution. e) Credit Risk: risk arising from the default of contractually established financial commitments or by a counterparty in operations.

Article 4.
(Place of Operation)

1. The CIRC is managed by the National Bank of Angola and operates within its facilities.

CONTINUATION OF NOTICE NO. 04/2020 Page 4 of 6
2. Access to the CIRC Service Counter is regulated by specific legislation.

Article 5.
(Covered Operations)

1. Pursuant to the Instruction on Information Submission to CIRC, Institutions must provide the National Bank of Angola with the following information:
   a) Balances of credit operations, actual or potential, and their risks by liabilities assumed by any natural or legal person; b) Checks presented without sufficient funds, for the second time; c) Guarantees accepted pursuant to 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 guarantees.
2. For the purposes of paragraph 1, Institutions must use the appropriate electronic channel, as established in the Instruction on Information Submission to CIRC.

Article 6.
(Liability for Information)

1. The information contained in the CIRC is entirely the responsibility of the Institutions that provided it, with these institutions responsible for any eventual alteration or correction.
2. Information provided by the National Bank of Angola must be destined exclusively to the requesting Institution, with total or partial transmission to third parties prohibited, unless legally authorized for this purpose.

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Article 7.
(Duty of Confidentiality)

1. Subject to the preceding paragraph, information referred to in this Notice cannot be used for purposes other than those of the CIRC, supervision of Institutions by the National Bank of Angola, or statistical preparation, under penalty that dissemination for other purposes may be considered a breach of the duty of confidentiality and subject to sanctions under Article 82 of the Financial Institutions Framework Law.
2. Information contained in the CIRC may be used within the framework of cooperation provided for in the Financial Institutions Framework Law, subject to Articles 79 and 80 of said Law.
3. Information contained in the CIRC is subject to the duty of confidentiality, as per the Law.
4. Information provided by the CIRC to Institutions must not contain the name of the Institution that granted the credit.

Article 8.
(Access to Information)

1. Institutions have access to CIRC information via electronic communication established by the National Bank of Angola.
2. Natural or legal persons have free access to their own credit and check information without sufficient funds, registered in the CIRC.
3. The National Bank of Angola, through specific legislation, establishes the conditions and terms for accessing CIRC information.

Article 9.
(Cost Participation)
The National Bank of Angola may fix and charge a reciprocal fee for the information it provides to Institutions.

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Article 10.
(Sanctions)

1. Failure to submit updated information, as well as the submission of incorrect information, constitutes an offense, with Institutions consequently barred from accessing CIRC information.
2. In addition to sanctions provided for in the Financial Institutions Framework Law, offenses under this Notice and complementary legislation are punishable under Civil and Penal Laws.

Article 11.
(Repeal)
All provisions contrary to this Notice are repealed, notably Notice No. 02/2010, dated November 18, on the Credit and Risk Information Center.

Article 12.
(Doubts and Omissions)
Doubts and omissions resulting from the interpretation and application of this Notice are resolved by the National Bank of Angola.

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

PUBLISH
Luanda, on February 21, 2020.
THE GOVERNOR
JOSÉ DE LIMA MASSANO