Notice No. 08/2019 of 6 November - Money Exchange Houses Operational Rules

PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 131, OF 6 NOVEMBER 2019 NOTICE NO. 08/2019 SUBJECT: MONEY EXCHANGE HOUSES

• Operational Rules

Given the need to consolidate foreign exchange policy measures, as well as to adjust the regulatory instruments concerning the new exchange regime, in light of the current macroeconomic context, aiming to achieve a market-determined exchange rate regime based on the law of supply and demand for foreign currency; Under the combined provisions of paragraph 2 of Article 28 of Law No. 5/97 of 27 June – Foreign Exchange Law, paragraph 1(d) and (f) of Article 21 and paragraph 1(d) of Article 51, both of Law No. 16/10 of 15 July – Law of the National Bank of Angola, and paragraph 1 of Article 65 of Law No. 12/15 of 17 June – Law of the Bases of Financial Institutions. I DETERMINE:

Article 1.
(Object)
This Notice defines the terms and conditions under which Money Exchange Houses must exercise their activity, observing in this regard the general requirements set forth in Article 104 of Law No. 12/15 of 17 June – Law of the Bases of Financial Institutions.

Article 2.
(Code of Conduct)

1. The management body must ensure the implementation and maintenance of:
   a) An organizational culture based on high standards of ethics, integrity, and professionalism, which must be formalized in a code of conduct applicable to all employees of the institution; b) An effective internal control system, appropriate to the size, nature, and complexity of the money exchange house's activity, aiming to guarantee the achievement of the following objectives:
   i. Efficient and profitable performance of the activity;
   ii. The existence of complete, relevant, reliable, and timely financial and management information to support decision-making and control processes;
   iii. Compliance with applicable legislation and regulation, including that relating to the prevention of money laundering and terrorist financing, as well as internal policies and procedures, including conduct and customer relationship rules, in order to protect its reputation and avoid being subject to sanctions.

Article 3.
(Permitted Activities)

1. The main activity of Money Exchange Houses is the manual and in-person purchase and sale of foreign currency banknotes and traveler's checks for travel purposes.
2. Money Exchange Houses may sell:
   a) Banknotes, traveler's checks, or personalized prepaid cards to resident foreign exchange individuals traveling abroad, up to the limit defined in specific regulation; and, b) Foreign currency banknotes and traveler's checks to non-resident foreign exchange individuals who traveled to Angola for tourism or business purposes, upon return to their countries of origin, to replace values exchanged for national currency and not used, under the terms defined in paragraph 3 of Article 4 of this Notice.
3. Money Exchange Houses may purchase foreign currency banknotes or traveler's checks from:
   a) Resident foreign exchange individuals; b) Individuals who traveled to the country for tourism or business purposes, under the terms defined in paragraph 3 of Article 4 of this Notice; c) Banking Financial Institutions, according to procedures and within limits defined through specific regulation; and, d) Legal entities holding foreign exchange licenses issued by the National Bank of Angola, including tourist accommodation units and travel and tourism agencies, as well as embassies and/or consular representations.
4. Money Exchange Houses may also carry out the following activities:
   a) Provide payment services, including value transfers (sending and receiving) and/or issuance of personalized prepaid cards, subject to express authorization from the National Bank of Angola and in accordance with current legislation; and, b) Provide banking correspondent services, within the scope of current regulation.
5. The sale of foreign currency through the loading of prepaid cards may also be carried out through the conclusion of a service provision contract with a payment card issuing Financial Institution authorized by the National Bank of Angola.
6. Money Exchange Houses that provide payment services, as stipulated in paragraph 4(a), must adjust their share capital to that established in paragraph 1(b) of Article 2 of Notice No. 8/2018 on the Adequacy of Minimum Share Capital and Regulatory Funds of Non-Bank Financial Institutions.

Article 4.
(Procedures for the Sale and Purchase of Foreign Currency)

1. For sale operations of banknotes, traveler's checks, or prepaid card loading to individuals, money exchange houses may accept payments through the following means:
   a) National currency cash; b) Debit or prepaid cards issued by a banking financial institution headquartered in Angola; and, c) Bank check issued in national currency.
2. In sale operations of banknotes, traveler's checks, or prepaid card loading to foreign exchange residents, money exchange houses must comply with the limits set forth in specific regulation.
3. The purchase or sale of foreign currency to individuals traveling to Angola for tourism or business purposes in amounts exceeding USD 5,000.00 (five thousand United States dollars) may only be carried out upon presentation of the original customs declaration of cash entry into the country.
4. The sale of foreign currency to replace currency sold by the visitor during their stay in the country and not used, regardless of the amount, is conditioned upon presentation of proof of the original sale of foreign currency in the country to Money Exchange Houses or Banking Financial Institutions.

Article 5.
(Prevention of Money Laundering and Terrorist Financing)

1. For the purposes of preventing money laundering and terrorist financing, Money Exchange Houses must observe the provisions of Notice No. 21/2012 of 25 April.
2. The extension of identification, due diligence, internal control, and training duties must be proportional to the nature, size, and complexity of each Money Exchange House and the activities it pursues, taking into account the characteristics and specific needs of smaller entities.
3. For the purposes of Article 5 of Notice No. 21/2012 of 25 April, Money Exchange Houses must, obligatorily, obtain the following documentation proving the identification of the buyer or seller of foreign currency and their address:
   a) If dealing with a resident foreign exchange individual or a foreign citizen resident:
   i. Valid passport, with entry visa to the destination country whenever applicable, for foreign currency sales, and identity card, residence card, or foreign passport, as applicable, for purchases;
   ii. Passport or border residence identification title, when traveling in border zones where free circulation and visa suspension agreements apply.
   b) If dealing with non-resident foreign exchange individuals who traveled to the country for tourism or business purposes:
   i. Valid foreign passport with Angola entry stamp and proof of foreign currency sale to a Money Exchange House or Banking Financial Institution during their stay in the country; and,
   ii. Official declaration certified by customs of the foreign currency entry into the country, when the value exceeds USD 5,000.00 (five thousand United States dollars).
   c) If dealing with the first transaction with a tourist accommodation unit, travel and tourism agency, as well as embassies and/or consular representations:
   i. Commercial registry certificate issued by the commercial registry office or another public document proving their constitution, namely the publication of statutes in the Official Gazette or notarial certificate of constitution; and,
   ii. Foreign exchange license issued by the National Bank of Angola.
4. Money Exchange Houses must implement procedures deemed necessary to verify and ensure the authenticity and veracity of documents presented by their clients.
5. Money Exchange Houses must implement procedures to evaluate their clients' operations, per client and across various time periods, namely weekly, monthly, semi-annually, and annually, in order to detect situations of exceeding limits or suspicions of money laundering or terrorist financing, and must suspend operations of clients who have exceeded regulatory limits and report suspicious operations, as stipulated in Notice No. 21/2012 of 25 April, always archiving evidence of evaluations and actions taken.

Article 6.
(Exchange Rate and Commissions)

1. In foreign currency purchase and sale operations, the exchange rate to be applied by Money Exchange Houses is freely negotiated.
2. Without prejudice to the preceding paragraph, commissions and any other charges, whether fixed or as a percentage of the operation value, must be charged exclusively in national currency (NC), under the terms defined in specific regulation.
3. Money Exchange Houses must display, in a highly visible and easily accessible location to the public, the exchange rate table applied in purchase and sale operations, as well as the commissions and expenses applicable thereto.

Article 7.
(Issuance of Receipt)
In carrying out foreign currency purchase and sale operations, of any value, Money Exchange Houses must issue receipts, as provided for in Presidential Decree No. 292/18 of 3 December on the Legal Regime of Invoices and Equivalent Documents, additionally stating, as applicable, the purpose of the operation, the exchange rate, the destination country, the identification document number of the individual and their signature, as well as a statement that it is subject to rules on the prevention and combat of money laundering and terrorist financing.

Article 8.
(Registration of Operations)

1. Money Exchange Houses must register daily the purchase and sale operations carried out in the Integrated Foreign Exchange Operations System – SINOC of the National Bank of Angola or in an alternative system to be determined by it.
2. Alternatively and upon justified request to the Department for Supervision of Non-Bank Financial Institutions, Money Exchange Houses may submit monthly reports of foreign exchange operations, detailing all purchases and sales of the institution, according to Annex I, which is an integral part of this Notice.

Article 9.
(Reports to the National Bank of Angola)

1. Money Exchange Houses must submit quarterly balance sheets, informing the institution's overall accounting position.
2. The documents referred to in the preceding paragraphs must be sent in XML format to the SSIF portal or delivered through another computer device, by the 8th (eight) day of the month following the one to which the information refers.
3. Money Exchange Houses must submit daily the exchange rates applied until 10:00 on the following day in XML format to the SSIF portal, according to Annex II, which is an integral part of this Notice.
4. Money Exchange Houses must appoint a qualified spokesperson to answer any questions regarding the information reported to the National Bank of Angola, ensuring the availability of a substitute in case of the designated spokesperson's unavailability.

Article 10.
(Institutional Portal)
Money Exchange Houses must establish an institutional portal freely accessible to the public on the internet, containing at minimum the following information about the institution:
a) Identification of governing bodies; b) Headquarters and counter addresses; c) Financial statements and auditor's report for the last 3 (three) years; d) Code of ethics and conduct; e) Money laundering and terrorist financing prevention policy; f) Exchange rate and commission table; and, g) Products and services offered and access conditions.

Article 11.
(Computer System)

1. The computer system of Money Exchange Houses for registering client operations and those related to their activity must be compatible with the Chart of Accounts for Non-Bank Financial Institutions and allow receipt