Notice No. 09/2018 of November 29

Published in the Official Gazette, I series, No. 180, of November 29, 2018 NOTICE NO. 09/2018 SUBJECT: EXCHANGE OFFICES

• Operational Rules
  Considering the need to align the operational rules of exchange offices, with a view to promoting transparency and security in the foreign exchange market; Under the combined provisions of paragraph f) of number 1 of Article 21.º and paragraph d) of number 1 of Article 51.º, both of Law No. 16/10, of July 15 - National Bank of Angola Law, combined with Articles 64.º and 90.º of Law No. 12/2015, of June 17 - Basic Law of Financial Institutions. DETERMINO:
  Article 1.º
  (Object)
  This Notice defines the terms and conditions under which Exchange Offices must exercise their activity, observing for this purpose the general requirements set out in Article 104.º of Law No. 12/15, of June 17 - Basic Law of Financial Institutions.
  Article 2.º
  (Conduct Rules)

1. The governing 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, adequate to the size, nature and complexity of the Exchange Office's activity, which guarantees compliance with the following objectives:
   i. An efficient and profitable performance of the activity;
   ii. The existence of complete, relevant, reliable and timely financial and management information, which supports decision-making and control processes;
   iii. Compliance with applicable legislation and regulation, including those relating to the prevention of money laundering and terrorist financing, as well as internal policies and procedures, including conduct rules and customer relationship rules, in order to protect its reputation and avoid being subject to sanctions.

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Article 3.º
(Permitted Activities)

1. Exchange offices have as their main activity the performance of manual and face-to-face foreign currency banknote and traveler's check purchase and sale operations, for travel purposes.
2. Exchange offices may sell:
   a) Banknotes, traveler's checks or personalized prepaid cards to resident individuals traveling abroad, up to the limit defined in specific regulation; b) Foreign currency banknotes and traveler's checks to non-resident individuals who traveled to Angola for tourism or business purposes, upon returning to their countries of origin, to replenish values exchanged into national currency and not used, under the terms defined in number 3 of Article 4.º of this Notice.
3. Exchange offices may purchase foreign currency banknotes or traveler's checks from:
   a) Resident individuals or resident foreign citizens; b) Individuals who traveled to the country for tourism or business purposes, under the terms defined in number 3 of Article 4.º of this Notice; c) Banking Financial Institutions, according to procedures and within limits defined through specific regulation; and d) Legal entities holding exchange licenses issued by the National Bank of Angola, including tourist accommodation units and travel and tourism agencies.
4. Exchange offices may also exercise the following activities:
   a) Provide payment services, including value transfers (sending and receiving) and/or issuance of personalized prepaid cards, subject to express authorization by the National Bank of Angola and in accordance with current legislation; b) Provide banking correspondent services, within the scope of current regulation.
5. The sale of foreign currency through loading prepaid cards may also be carried out by concluding a service provision contract with a Payment Card Issuing Financial Institution authorized by the National Bank of Angola.
6. Exchange offices providing payment services as set out in paragraph a) of number 4 must align their share capital to that established in paragraph b) of number 1 of Article 2.º of Notice No. 8/2018 on the Minimum Share Capital and Regulatory Funds of Non-Banking Financial Institutions.

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

1. For sale operations involving banknotes, traveler's checks or prepaid card loading to individuals, Exchange offices may accept payments through the following means:
   a) Cash in national currency; 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 involving banknotes, traveler's checks or prepaid card loading to resident individuals, Exchange offices must comply with the limits set out in current regulation.
3. The purchase or sale of foreign currency to individuals traveling to Angola for tourism or business purposes with a value 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 for replenishment of currency sold to visitors during their stay in the country and not used, regardless of value, is conditioned upon presentation of proof of the original sale of foreign currency in the country to Exchange offices or Banking Financial Institutions.
   Article 5.º
   (Prevention of Money Laundering and Terrorist Financing)
5. The provisions of Notice No. 21/2012, of April 25, including those set out in Article 8.º of said Notice, shall apply to Exchange offices.
6. The extension of identification duties, due diligence, internal control and training must be proportional to the nature, size and complexity of each Exchange office and its activities, taking into account the characteristics and specific needs of smaller entities.
7. Exchange offices are prohibited from performing acts that may result in their involvement in any money laundering or terrorist financing operation and must ensure the adoption of all necessary measures to prevent such involvement.
8. For the purposes established in Article 5.º of Notice No. 21/2012, of April 25, Exchange offices must obligatorily obtain the following supporting documentation confirming the identification of the buyer or seller of foreign currency and their address:
   a) Regarding resident individuals or resident foreign citizens:
   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 identification title, when traveling in border areas subject to Free Movement and Visa Suspension Agreements.
   b) Regarding non-resident individuals who traveled to the country for tourism or business:
   i. Valid foreign passport with entry stamp in Angola and proof of foreign currency sale during their stay at an Exchange office or Banking Financial Institution;
   ii. Official declaration certified by Customs regarding the entry of foreign currency into the country, when the value exceeds USD 5,000.00 (five thousand United States dollars).
   c) Regarding the first transaction with a tourist accommodation unit or travel and tourism agency:
   i. Commercial registry certificate issued by the Commercial Registry Office or other public document confirming its establishment, namely the publication of statutes in the Official Gazette or notarial deed certificate;
   ii. Exchange license issued by the National Bank of Angola.
9. Exchange offices must implement procedures deemed necessary to verify and ensure the authenticity and veracity of documents presented by their clients.
10. Exchange offices must implement procedures to evaluate client operations, per client and across multiple 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, suspending operations of clients who have exceeded regulatory limits and reporting suspicious operations as set out in Notice No. 21/2012, archiving evidence of evaluations and actions taken.
    Article 6.º
    (Exchange Rate and Commissions)
11. For the purposes of this Notice, Exchange offices, in foreign currency purchase and sale operations, may practice a freely negotiated exchange rate with their clients, subject to the limit set in the following number.
12. The exchange rates and commissions, including expenses and other charges, charged by Exchange offices in sales to their clients must not exceed 10% (ten percent) on the reference exchange rate published on the National Bank of Angola's institutional portal.
13. Exchange offices must display, in a highly visible and easily accessible location to the public, the exchange rate table practiced in purchase and sale operations, as well as the commissions and expenses applicable thereto.
    Article 7.º
    (Issuance of Receipt)
    In carrying out foreign currency purchase and sale operations, regardless of value, Exchange offices must issue receipts as provided for in Presidential Decree No. 149/13 of October 1, 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 mention that it is subject to Money Laundering and Terrorist Financing Combating rules.
    Article 8.º
    (Recording of Operations)
14. Exchange offices must record daily the purchase and sale operations carried out in the Integrated Foreign Exchange Operations System – SINOC of the National Bank of Angola or an alternative system to be determined by it.
15. Alternatively and upon reasoned request to the Department of Supervision of Non-Banking Financial Institutions, Exchange offices may submit monthly Foreign Exchange Operation Statements, reporting all detailed purchases and sales of the institution according to Annex I, which is an integral part of this Notice.
    Article 9.º
    (Reports to the National Bank of Angola)
16. Exchange offices must submit quarterly a trial balance, informing their overall accounting position.
17. The documents referred to in the preceding numbers 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 information period.
18. Exchange offices must submit daily, until 10:00 AM the following day, the practiced exchange rates in XML format to the SSIF portal, according to Annex III, which is an integral part of this Notice.
19. Exchange offices must appoint a qualified interlocutor to answer potential questions regarding information reported to the National Bank of Angola, ensuring the availability of a substitute in case of the designated interlocutor's impediment.
    Article 10.º
    (Institutional Portal)
    Exchange offices must establish an institutional portal freely accessible to the public on the internet, which contains at minimum the following information about the institution:
    a) Identification of governing bodies; b) Head office and counter addresses; c) Financial statements and auditor's report for the last 3 years; d) Code of ethics and conduct; e) Money laundering prevention and terrorist financing policy; f) Exchange rate and commission table; g) Products and services offered and access conditions.

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Article 11.º
(Information System)

1. The information system of Exchange offices for recording client operations and those related to their activity must be compatible with the Financial Institutions' Chart of Accounts and allow receipt issuance to have direct reflection in their accounting.
2. The information system must enable obtaining operation information per client, for a specific time period, from all counters of the same Exchange office, for regulatory limit control and prevention of money laundering and terrorist financing.
   Article 12.º
   (Accounting)
3. Exchange offices must carry out accounting registration of their operations, in accordance with the current Financial Institutions' Chart of Accounts, adapting the headings to attend to these operations, in the format defined by the National Bank of Angola, according to Annex II, which is an integral part of this Notice.
4. Exchange offices must submit to the National Bank of Angola annually, the financial statements for the fiscal year by April 30 (thirty) of the following year.
5. Exchange offices must publish annually the financial statements for the fiscal year, in a major circulation newspaper and on their institutional portal by April 30 (thirty) of the following year.
   Article 13.º
   (External Audit)
6. Exchange offices must submit their financial statements annually to external audit, carried out by an independent auditor.
7. The independent auditor must issue an audit report, which must be sent to the National Bank of Angola together with the financial statements as referred to in number 2 of Article 12.º of this Notice.
8. For the purposes of this article, the independent auditor may be a duly authorized audit firm, certified accountant or chartered accountant duly registered with the Order of Accountants and Certified Accountants.
   Article 14.º
   (Duty of Archiving)
9. Documents requested in foreign currency purchase and sale operations under any modality must be photocopied by Exchange offices and attached to receipts confirming the operation, for archiving purposes.
10. Exchange offices must maintain in physical or digitized archive copies of documents and elements relating to their operations for 10 (ten) years, separated by agencies.
11. The information archiving system described in the preceding number must ensure protection, confidentiality and retrieval of said information.
    Article 15.º
    (Sanctions)
    Non-compliance with the provisions established in this Notice constitutes offenses provided for and punishable, under Law No. 12/15, of June 17, Basic Law of Financial Institutions.
    Article 16.º
    (Doubts and Omissions)
    Doubts and omissions resulting from the interpretation and application of this Notice are resolved by the National Bank of Angola.
    Article 17.º
    (Revocation Clause)
    All provisions contrary to this Notice are revoked, including Instrutivo No. 21/2016, of September 06, on Operational Rules of Exchange Offices and Instrutivo No. 2/2012 of April 20, which regulates obligations set out in Notice 21/12, of April 25 specifically for Exchange Offices.
    Article 18.º
    (Entry into Force)
    This Notice enters into force 30 days after the date of its publication.
    PUBLISHED.
    Luanda, November 16, 2018.
    THE GOVERNOR
    JOSÉ DE LIMA MASSANO

ANNEX I
EXCHANGE OFFICES
FOREIGN EXCHANGE OPERATIONS STATEMENT – (Monthly Position – Submission to BNA) NAME OF EXCHANGE OFFICE Monthly PURCHASES OF FOREIGN CURRENCIES FROM BANKING FINANCIAL INSTITUTIONS Selling Bank / Currency Symbol | Value in ME | Average Exchange Rate* | Equivalent in Kwanzas TOTAL TOTAL OWN FUNDS (Capital + Reserves + Results) PURCHASE LIMIT (25% OF Own Funds) EXCESS/DEFICIT

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ANNEX II
CHART OF ACCOUNTS

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ANNEX III
Exchange rate table to be in force on day xxx of xx of xx DAILY EXCHANGE RATE PRACTICED STATEMENT Exchange Rate | CURRENCIES | ABBREVIATIONS | BUY | SELL POUND STERLING | GBP US DOLLAR | USD EURO | EUR REAL | BRL SWISS FRANC | CHF CANADIAN DOLLAR | CAD CHINESE YEN | JPY SOUTH AFRICAN RAND | ZAR NAMIBIAN DOLLAR | NAD OTHERS

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