Notice No. 07/2020 of April 2

PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 41, OF APRIL 2 NOTICE NO. 07/2020 SUBJECT: FINANCIAL SYSTEM

• Expansion of Banking Services
  Given the need to promote the updating of rules and procedures for the hiring and operation of banking agents, aiming to enhance the expansion of the banking network throughout the Country, as well as access to financial products and services for the population, particularly those residing in remote areas, and thereby contribute to increasing financial inclusion levels; In these terms, under the combined provisions of Article 38 of Law No. 12/15, of June 17 – Law of the Bases of Financial Institutions, and of paragraph f) of number 1 of Article 21 and paragraph d) of number 1 of Article 51, both of Law No. 16/10, of July 15 - Law of the National Bank of Angola. I DETERMINE:

CHAPTER I
General Provisions
Article 1.
(Object)
This Notice establishes the specific rules applicable to Banking Financial Institutions that intend to expand their activities throughout the national territory, by hiring a banking correspondent, hereinafter referred to as Banking Agent.

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Article 2.
(Scope)
This Notice applies to all Banking Financial Institutions under the supervision of the National Bank of Angola.

Article 3.
(Definitions)
For the purposes of this Notice, the following shall be understood as:
a) Branch: establishment in the country of a Banking Financial Institution or Non-Banking Financial Institution with headquarters in Angola, which lacks legal personality and directly carries out, in whole or in part, operations inherent to the company's activity or supplementary establishment of the branch in the country, of a Banking Financial Institution or Non-Banking Financial Institution with headquarters abroad. b) Banking Agent: legal entity that represents and provides services inherent to the activity of the Banking Financial Institution in premises not belonging to it, under terms previously agreed upon by the parties. c) Beneficiary: natural or legal person designated in a payment order as the recipient of a funds transfer. d) Client: natural or legal person who uses the products and services of a Financial Institution, whether or not contractually bound to it. e) Commissions: monetary payments due from clients by Financial Institutions as remuneration for services provided by them, within the scope of their activity. f) Credit: act by which a Banking or Non-Banking Financial Institution, acting for consideration, places or promises to place funds at the disposal of a natural or legal person against the promise of this person to return them on the due date, or to incur, in the interest of the same, an obligation by signature, such as a guarantee. g) Expenses: charges borne by Banking Financial Institutions, which are due to them by third parties. h) Business Days: days of the week, excluding Saturdays, Sundays, and holidays, on which Banking Financial Institutions are open to the public for all functions. i) Deposit: contract by which an entity (depositor) entrusts money to a Banking Financial Institution (depository), which gains the right to dispose of it for its business and assumes the responsibility to return an equivalent amount, with or without interest, within the agreed period. j) Firm: name adopted by a Banking Financial Institution, which evidences the exercise of the activity that constitutes its corporate object. k) Contracting Institution: Banking Financial Institution that hires a Banking Agent. l) Banking Financial Institution: also referred to as a bank, a company whose main activity consists of receiving deposits or other refundable funds from the public, in order to apply them on its own account, by granting credit, in accordance with the Law of the Bases of Financial Institutions. m) Brand: Sign or set of nominative, figurative, or emblematic signs that allow distinguishing the products or services of a company from others identical or similar. n) Banking Financial Operations Performed by the Banking Agent: services provided to the public by the Banking Agent outside the headquarters and branches of Banking Financial Institutions, supervised by the National Bank of Angola.

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CHAPTER II
Access and General Conditions of the Banking Agent's Activity
Article 4.
(Responsibilities)

1. The Banking Agent acts on behalf of and under the guidance of the Contracting Institution, which is responsible for all its acts, within the scope of the activities for which it was hired.
2. Without prejudice to the provisions of the preceding paragraph, the Banking Agent must comply with requirements regarding conflict of interest management and the mandatory duty of banking secrecy.
3. The Contracting Institution must guarantee, in particular, the integrity, reliability, security, and confidentiality of transactions carried out, as well as compliance with applicable regulations for the activity carried out through the Banking Agent.

Article 5.
(Eligible Entities and Hiring Criteria)

1. The Contracting Institution may hire to exercise the activity of Banking Agent, public or private legal entities, that are duly authorized to exercise their main activity, if applicable, namely:
   a) Commercial companies; b) Registration or notary services; c) Private educational institutions; d) Fixed and/or mobile telecommunications operators; e) Postal sector operators; f) Microfinance institutions; g) Credit cooperatives; h) Microcredit companies; i) Non-governmental organizations (NGOs); j) Associations and foundations; k) Payment service companies; and l) Other entities that the National Bank of Angola may specifically authorize.
2. Contracting Institutions are exempt from requiring credit cooperatives and electronic money institutions to comply with the conditions established in Article 7 of this Notice, with the exception of those in paragraph 1, letter b), as well as letters e) and g) of number 3 of the same article.
3. The following are not eligible for the category of Banking Agent:
   a) Natural or legal persons that include members of the public administration, or that exercise professional activity related to companies operating games of chance and fortune; b) Entities whose administrative body or equivalent includes members covered by the provisions of paragraph 2 of Article 7 of this Notice; c) Legal persons that include members of the public administration, or that have been convicted of economic crimes; d) Entities whose exclusive or main object is the provision of Banking Agent services, or whose corporate control is exercised by the Contracting Institution or that are in a control relationship with a common entity; and e) Entities whose corporate control, directly or indirectly, is exercised by an administrator of any companies that are in a group relationship with the Contracting Institution.

Article 6.
(General Requirements)
The Banking Agent must satisfy the following requirements:
a) Exercise agent activities in accordance with the unilateral guidelines of the Contracting Institution, which assumes full responsibility for services provided to clients; b) Exercise agent activities in accordance with current legislation; c) Sign, at the time of hiring, a declaration stating that it has taken knowledge of the legislation pertaining to the respective activity, committing to comply with it; and d) Disclose to the public its status as a service provider for the Contracting Institution, identifying it by the corporate name by which it is known in the market, describing the products and services offered, as well as the Contracting Institution's customer service channels.

Article 7.
(Banking Agent Evaluation Criteria)

1. The Contracting Institution must, prior to hiring, evaluate the entity to be hired as a Banking Agent, to ensure compliance, at a minimum, with the following conditions:
   a) Be exercising an economic activity and possess adequate physical facilities and human resources capable of ensuring the provision of services with security and efficiency; b) Not possess, in the last 3 (three) months, classified credit at maximum as Level E Risk, in accordance with Notice No. 11/2014, of December 17, nor appear in the CIRC registry for reasons of issuing checks without provision; and c) Proof of integrity of owners, managers, partners, and members of the corporate bodies of entities eligible as Banking Agents.
2. Among other relevant circumstances and for the purposes of the provision in paragraph 1, letter c), the following shall be considered indicative of lack of integrity if the person has been or is in the condition of:
   a) Declared, by national or foreign judgment, bankrupt or insolvent, or responsible for the bankruptcy or insolvency of the company dominated by it or of which it was administrator, director, or manager; b) Convicted, in the country or abroad, of crimes of fraudulent bankruptcy, negligent bankruptcy, forgery, theft, robbery, fraud, extortion, breach of trust, usury, exchange fraud, and issuing checks without provision, drug trafficking, money laundering, and other economic crimes; c) Administrator, director, or manager of a company, in the country or abroad, whose bankruptcy or insolvency was prevented, suspended, or avoided by remedial measures or other preventive or suspensive means, provided that the competent authorities recognize their responsibility for that situation; and d) Convicted, in the country or abroad, for practicing infractions of legal or regulatory rules governing the activity of Financial Institutions, the insurance activity, and the securities market, whenever the gravity or recurrence of those infractions justifies it.
3. The entity intending to be hired as a Banking Agent must provide the Contracting Institution, at a minimum, with the following information:
   a) Corporate name or firm; b) Certificate of registration of legal entities or other equivalent document; c) Permit, activity license, valid or equivalent document, issued by competent authority; d) Audited financial statements, pertaining to the previous economic year, when applicable; e) Proof of compliance with tax obligations, issued by the respective tax office, when applicable; f) Criminal record certificate of the persons provided for in paragraph 1, letter d) of this article; g) Address and contact details; h) Proof of possession of financial resources or funds to ensure Banking Agent activities, especially cash deposits and withdrawals, when applicable; and i) Declaration of honor, attesting to the veracity of the information provided.
4. Public Administration bodies and Institutions, namely registration or notary services, educational institutions, and public companies are exempt from complying with the criteria established in paragraphs 1, letters a) and d), and paragraph 3, letters d), f), and h) of this article.

Article 8.
(Permitted Activities)
It is permitted for the Banking Agent, under the terms of this Notice, to carry out the following activities:
a) Reception and forwarding of requests for opening and closing bank accounts; b) Intra-bank and inter-bank transfers; c) Capture of deposits for savings and other applications previously defined by the Contracting Institution; d) Cash deposits and withdrawals, within the limits established by the Contracting Institution, taking into account the risk profile associated with the volume of transactions and the security conditions of the Banking Agent; e) Payment of services; f) Loan disbursement; g) Reception of loan repayments; h) Provision of bank account balances; i) Provision of account statements, with minimum information defined by the Banking Financial Institution; j) Reception and forwarding of proposals regarding credit operations of the Contracting Institution; k) Reception and forwarding of requests for issuance and replacement of debit, credit, and prepaid cards; l) Reception and sending of domestic remittances; and, m) others that the National Bank of Angola may authorize.

Article 9.
(Prohibited Activities)
It is prohibited for the Banking Agent, under this Notice, to carry out the following activities:
a) Carrying out overdraft debit operations; b) Credit advances to be made available by the Financial Institution; c) Carrying out foreign exchange operations; d) Providing any type of guarantee in credit contract operations; e) Issuing, in its favor, obligations related to intermediated operations; f) Charging any fees, commissions, or services related to the provision of services that have not been previously agreed upon with the Contracting Financial Institution; g) Using in its corporate name, expressions that suggest activities typical of Banking Financial Institutions, namely “bank”, “banker”, “of credit”, “of deposits”, “financial leasing” or other similar ones that denote the exercise of activity typical of Financial Institutions; h) Subcontracting others to exercise the activity of Banking Agent; i) Other activities prohibited by current legislation within the Angolan financial system.

Article 10.
(Technology Used and Monitoring of the Banking Agent's Activities)

1. The Contracting Institution must ensure that transactions carried out by the Banking Agent occur in a system compatible with that of the Contracting Institution and allows for data security and integrity, as well as its audit.
2. Whenever possible, the Banking Agent's transactions should occur in real time.
3. The Contracting Institution must guarantee that the Banking Agent has an adequate technological system compatible with that used by payment and clearing system operators, which allows identifying and monitoring the transactions provided for in Article 16 of this Notice.
4. The Contracting Institution may provide Automated Teller Machines (ATMs) to the Banking Agent, provided that the following conditions are cumulatively observed:
   a) Specific contract between the parties; b) Management, security, and protection conditions for ATMs, ensuring their proper functioning and use by clients; and c) Capacity for the Banking Agent to execute support services for the ATM.
5. The Contracting Institution must designate the nearest support and monitoring bank branch for the Banking Agent's activities.

CHAPTER III
Hiring of the Banking Agent
Article 11.
(Minimum Contract Clauses and Remuneration of the Banking Agent)

1. The activities carried out by the Banking Agent, provided for in Article 8 of this Notice, must be defined in a written contract, duly executed with the Contracting Institution.
2. The contract referred to in the preceding paragraph must contain, at a minimum, clauses on the following aspects:
   a) The activities to be carried out by the Banking Agent; b) The rights and obligations of the parties; c) The remuneration of the Banking Agent, including the agreed fixing conditions; d) The account number of the Banking Agent domiciled at the Contracting Institution used for payment of remuneration for services rendered; e) A statement that the provision of services by the Banking Agent is subject to the rules of this Notice and other applicable legislation. f) The Contracting Institutions, as well as the reference that the National Bank of Angola must be granted total and timely access to internal control systems, documents, reports, archives, and the Banking Agent's employees, whenever necessary; g) A statement that the owner, manager, administrator, partner, or equivalent of the Banking Agent must not perform management functions, make management decisions, or act or appear to act in a manner equivalent to that of a management member or employee of the Contracting Institution; h) The obligation of the agent to ensure the protection of records, data, documents, or processes relevant to the operations carried out, establishing, for this purpose, the duty to transfer them to the Contracting Institution at regular intervals previously specified; i) A statement that all information and data collected by the Banking Agent regarding the services provided, relating to clients and/or the Contracting Institution, is the property of the Contracting Institution and that all documents received in the context of the Banking Agent service provision must be delivered to it; j) The obligation of the Contracting Institution to ensure the collection, at the Banking Agent's establishment, of documents proving transactions carried out in excess cash, within a reasonable timeframe, considering the risk profile and location of the Banking Agent and the volume of transactions carried out; k) The specification that the Banking Agent and its employees are bound by the secrecy duty established by law, regarding operations carried out with clients on behalf of the Contracting Institution; l) The appropriate limits of the cash amount to be maintained by the Banking Agent, as well as the limits for payments and receipts per client; m) The indication of prohibited activities for the Banking Agent, namely:
   i. Charging any fees, commissions, or charges related to the exercise of activities not provided for in the Contracting Institution's fee schedule, which must be prepared in accordance with the commission and other charges regime submitted to the National Bank of Angola;
   ii. Making unauthorized advances on behalf of the Contracting Institution;
   iii. Carrying out foreign exchange operations;
   iv. Providing guarantees in credit operations; and
   v. Subdelegating or subcontracting a Banking Agent.
   n) The conditions for altering service terms and circumstances of non-compliance; and o) The causes or situations for contract termination, as well as their consequences, under this Notice.
3. The Contracting Institution must keep a copy of the contract executed with each Banking Agent for a minimum period of 10 (ten) years.
4. The Contracting Institution must adopt a Banking Agent remuneration policy, compatible with the risk management policy, so as not to incentivize behaviors that increase risk exposure in the short, medium, and long-term strategies adopted by the institution.

Article 12.
(Non-Exclusivity of Contract)

1. The contract executed between the Contracting Institution and the Banking Agent must not be exclusive.
2. A Banking Agent may provide services to several Contracting Institutions, provided that the service contracts are separate.
3. In the event of a Banking Agent being hired by several Contracting Institutions, these must ensure that the agent demonstrates the capacity to manage transactions from different Institutions.

Article 13.
(Contract Termination)
The Banking Agent contract may be terminated by the initiative of the parties or for any of the following reasons:
a) Systematic non-compliance with the obligations of one of the parties or that compromises the essence or maintenance of the legal relationship between the parties; b) Cessation of the main activity of the Banking Agent; c) Dissolution of the Contracting Institution or the Banking Agent; d) Death of the owner of the institution subject to the contract; e) Conviction of the owner of the institution subject to the contract, in the country or abroad, of economic crimes; f) Change or closure of the establishment without prior written consent of the Contracting Institution; and g) By free initiative of the parties, with 30 (thirty) days' prior notice.

CHAPTER IV
Activity of the Banking Agent
Article 14.
(Duty to Inform the Public)

1. Contracting Institutions must ensure the availability to the public, in all branches, on their websites, and at the Banking Agent's establishments, in a highly visible, directly accessible, and easily identifiable location:
   a) The updated list of their Banking Agents, including name, address, and phone number or any other means of communication; b) Products and services provided by the Banking Agent; and c) The free telephone contact, email, and other complaint mechanisms of the Contracting Institution, inside the establishment in a visible location, for the purpose of filing complaints with the Contracting Institution and/or the National Bank of Angola.
2. The Contracting Institution must also:
   a) Have prior knowledge of the change or closure of the Banking Agent's establishment, with a minimum advance notice of 30 (thirty) days; and b) Ensure that the Banking Agent informs the public about the change or closure of its establishment, with a minimum advance notice of 30 (thirty) days from the date of its occurrence.

Article 15.
(Identification of the Banking Agent)

1. The Banking Agent, in addition to identifying the company's brand, must visually indicate the Banking Financial Institution for which it provides services.
2. The Banking Financial Institution must make available to clients the name, address, phone number, or any other means of communication of the hired Banking Agent, as well as information about the products and services for which it is qualified to provide.
3. The Banking Financial Institution must also make available to its clients the contact and phone number or any other means of communication for complaints regarding services provided by its Banking Agent.

Article 16.
(Control Procedures)
The Contracting Institution must:
a) Establish a control and security system that contemplates the assignment of responsibilities and clear internal control policies, to mitigate the risks inherent to Banking Financial Operations carried out by the Banking Agent; b) Use transaction verification methods to promote adherence to these services and allow verification of operations carried out by the Banking Agent; c) Have effective mechanisms to differentiate operations carried out under the contract executed with the Banking Agent and operations it carries out within the scope of its corporate object; d) Ensure that the execution of operations carried out by the Banking Agent is performed in accordance with its procedures; e) Guarantee the integrity of client information registered by the Banking Ban