Notice No. 12/2012 of April 13

NOTICE NO. 12/2012

Pursuant to the provisions of the United Nations Convention against Transnational Organized Crime (Palermo Convention) of 2000, approved by the National Assembly through Resolution No. 21/10 of June 22, as well as any others that may be approved;

Considering the entry into force of Law No. 34/11 of December 12, which establishes preventive and repressive measures to combat money laundering from illicit proceeds and terrorist financing;

Given the need to implement a system for preventing money laundering and terrorist financing, which includes establishing Customer Due Diligence (“CDD”) procedures and the requirements necessary for establishing business relationships and in the context of occasional transactions, adapting them to new identification and customer knowledge requirements and the monitoring of business relationships by non-bank financial institutions;

Given, likewise, the need to establish adequate controls to effectively mitigate the risk of money laundering and terrorist financing to which they are subject;

Under the combined provisions of item f) of paragraph 1 of Article 21.º and item d) of paragraph 1 of Article 51.º, both of Law No. 16/10 of July 15 - Law of the National Bank of Angola, conjugated with Article 70.º of Law No. 13/05 of September 30 - Law of Financial Institutions;

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I HEREBY ORDER:

CHAPTER I
General Provisions
Article 1.
Subject Matter

Pursuant to the provisions of Article 36.º of Law No. 34/11 of December 12 - Law on Combating Money Laundering and Terrorist Financing - the National Bank of Angola regulates through this notice the conditions for exercising the obligations provided for in the aforementioned Law, namely the identification and due diligence obligations, as well as the establishment of a system for preventing money laundering and terrorist financing, including the creation of the Compliance Officer within the organizational structure of non-bank financial institutions.

Article 2.
Scope

The provisions contained in this notice apply to non-bank financial institutions under the supervision of the National Bank of Angola, in accordance with paragraph 1 of Article 5.º of Law No. 13/05 of September 30 - Law of Financial Institutions:

a) Money exchange houses; b) Credit cooperative societies; c) Financial assignment societies; d) Financial leasing societies; e) Intermediary societies for money or foreign exchange markets; f) Microcredit societies; g) Payment service providers; h) Payment system operators, clearing houses or clearing chambers, in accordance with the Angolan Payments System Law;

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i) Other societies that are qualified as such by Law.

Article 3.
Definitions

Without prejudice to the definitions established in Article 2.º of Law No. 34/11 of December 12, for the purposes of this notice, the following shall be understood as:

1. Agent - an individual or legal person who undertakes to promote, on behalf of another, the conclusion of contracts, in an autonomous, stable manner and for remuneration, and may only conclude contracts if the latter has conferred the necessary powers in writing.

2. Customer - an individual, legal person or any other legal entity with which the financial institution establishes or has established a business relationship or conducts an occasional transaction.

3. Compliance Officer - the person responsible for implementing the system for preventing money laundering and terrorist financing, including the respective internal control procedures, and who is also responsible for centralizing information and reporting transactions susceptible to money laundering and terrorist financing to the Financial Intelligence Unit and other competent authorities.

4. Suspicious transactions - transactions that may constitute the crime of money laundering or terrorist financing.

5. Non-profit organizations - a legal entity or organization that is primarily dedicated to the creation and/or distribution of funds for non-profit purposes, namely charitable, social solidarity, religious, among others.

6. Representative - any person or entity with legal authority to act on behalf of another;

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7. Foreign exchange resident and foreign exchange non-resident:

a) foreign exchange resident - the following shall be considered foreign exchange residents in national territory:
i) individuals who have their habitual residence in the country; ii) legal persons with their registered office in the country; iii) branches, subsidiaries, agencies or any other forms of representation in the country of legal persons with their registered office abroad; iv) funds, institutes and public bodies endowed with administrative and financial autonomy, with their seat in national territory; v) Angolan citizens who are diplomats, consular representatives or equivalent, exercising functions abroad, as well as the members of their families; vi) Angolan nationals whose absence abroad for a period exceeding 90 days and less than 1 year originates from studies or is determined by the exercise of public functions.

b) foreign exchange non-resident - the following shall be considered foreign exchange non-residents in national territory:
i) individuals with habitual residence abroad; ii) legal persons with their registered office abroad; iii) individuals who emigrate; iv) individuals who leave the country for a period exceeding 1 year; v) branches, subsidiaries, agencies or any other forms of representation in foreign territory of legal persons with their registered office in the country;

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vi) diplomats, consular representatives or equivalent acting in national territory, as well as the members of their families.

c) for the purposes of the provision in item a) of this point, the following shall be considered habitual residents in national territory:
i) all Angolan citizens living in Angola; ii) all foreign citizens holding a residence card issued in accordance with applicable legislation.

CHAPTER II
Identification and Due Diligence Procedures
Section I
Customer Identification
Article 4.
Customer Identification Obligation

1. The identification obligations provided for in Article 5.º of Law No. 34/11 of December 12 must be adopted by non-bank financial institutions regarding their customers, their respective representatives, beneficial owners and other participants in transactions, where applicable.

2. The aforementioned identification obligations apply not only to new customers of the non-bank financial institution, but may also apply to existing customers, depending on the assessment of the money laundering and terrorist financing risk associated with them.

3. Whenever the non-bank financial institution has knowledge or a well-founded suspicion that the customer is not acting on their own behalf, it must take adequate measures to identify the person or entity on whose behalf the customer is acting.

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4. In case of doubts regarding the true identity of the customer, and, where applicable, the representative or beneficial owner, which cannot be resolved satisfactorily, it must refuse to carry out any transactions.

Article 5.
Establishment of Business Relationship

1. Non-bank financial institutions must develop clear policies and procedures for customer acceptance;

2. For the purposes of the preceding paragraph, non-bank financial institutions must collect and retain information regarding customers, their representatives and beneficial owners, where applicable, before the start of the business relationship, and must request, at a minimum, the following details:

a) Individuals:
i) full name and signature; ii) date of birth; iii) nationality; iv) full residential address or, if not possible, any contacts considered valid by the non-bank financial institution; v) profession and employer, where applicable; vi) type of identification document used, identification number, expiration date and issuing authority; vii) nature and amount of income, where applicable; viii) Tax Identification Number (optional);

b) Legal persons:
i) full corporate name of the legal person; ii) corporate purpose and business objective;

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iii) registered office address; iv) Tax Identification Number (TIN); v) commercial registry registration number; vi) identity of shareholders holding 20% or more of the capital and voting rights of the legal person; vii) identity of the legal person's attorneys-in-fact and their respective powers of attorney;

c) Regarding sole traders, the establishment of the business relationship must require the Tax Identification Number (TIN), corporate name, registered office and corporate purpose, in addition to the identification details referred to in item a) of paragraph 2 of this article;

d) Regarding condominiums under horizontal property regime and autonomous estates, contracted under general legislation, the regime provided for in item b) of paragraph 2 of this article shall apply, with the necessary adaptations.

3. The verification of the information must be proven by presenting the following valid documents:

a) Individuals:
i) the identification details mentioned in points i), ii) and iii) of item a) of paragraph 2 of this article must be verified as follows:

• by foreign exchange residents by presenting a national ID card or residence card issued by the competent authority, showing photograph, full name, date of birth and nationality;
• by foreign exchange non-residents by presenting a passport, except for Angolan foreign exchange non-residents, who may present a national ID card showing photograph, full name, date of birth and nationality;

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ii) the full residential address, profession, and respective employer where applicable, must be proven through any document, means or procedure considered valid, reliable and sufficient to demonstrate the information provided;

iii) the identification detail mentioned in point viii) of item a) of paragraph 2 of this article must be verified by presenting a Tax Identification Card or equivalent issued by the National Tax Directorate of the Ministry of Finance.

b) Legal persons:
i) regarding resident legal persons, the identification details mentioned in points i), ii), iii) and v) of item b) of paragraph 2 of this article must be verified by presenting a commercial registry certificate issued by the Commercial Registry Office or another public document proving the same, namely a copy of the Official Gazette containing the publication of the bylaws or a notarial deed of incorporation;

ii) regarding non-resident legal persons, the identification details mentioned in points i), ii) and iii) of item b) of paragraph 2 of this article must be verified by presenting proof of commercial registration or another valid public document, duly certified by the competent entities of the country of residence, and authenticated by the Angolan consular representation in the country of origin;

iii) the identification detail mentioned in point iv) of item b) of paragraph 2 of this article must be verified by presenting a Tax Identification Card or equivalent issued by the National Tax Directorate of the Ministry of Finance;

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iv) the identification details mentioned in point vi) of item b) of paragraph 2 of this article must be proven by presenting the Minutes of the Constituent General Assembly as well as the minutes of any alteration to the shareholder or partner structure;

v) the identification detail mentioned in point vii) of item b) of paragraph 2 of this article must be proven by a written declaration issued by the legal person itself, containing the names of the members of the management body, attorneys-in-fact and representatives.

c) In the establishment of a business relationship on behalf of minors who, due to their age, do not hold any of the documents referred to in item a) of paragraph 3 of this article, the proof of the minor's identification details must be carried out by presenting a personal registration certificate if a foreign exchange resident, or an equivalent public document if a foreign exchange non-resident, to be presented by whoever demonstrates legitimacy as their legal representative for the establishment of the business relationship, and their respective identity must be verified at the start of the business relationship.

Article 6.
Timing of Identity Verification

1. Non-bank financial institutions must identify customers, and where applicable, legal representatives or beneficial owners, and take reasonable measures to verify their identity, before the establishment of the business relationship or when occasional transactions are carried out;

2. Institutions may complete identification and verification procedures after the establishment of the business relationship or occasional transaction, provided that:
   a) the risk of money laundering and terrorist financing is low;

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b) the procedures occur in the shortest possible time; c) it is essential not to interrupt the normal course of business, under the following circumstances, namely:
i) transactions are carried out without the physical presence of the customer; ii) transactions involve securities; d) the financial institution adopts a system for preventing money laundering and terrorist financing that includes the conditions under which late verification may occur, namely:
i) limitation of the number, type and/or value of transactions to be carried out prior to identity verification; ii) enhanced monitoring of the business relationship between the moment of its establishment and the identity verification; e) the contrary does not result from legal or regulatory provision.

Article 7.
Occasional Transactions

1. The non-bank financial institution must collect and retain information whenever, in person or remotely, a customer intends to carry out occasional transactions whose amount is equal to or exceeds, in national currency, the equivalent of USD 15,000.00 (fifteen thousand United States Dollars), regardless of whether the transaction is carried out through a single operation or through several operations that appear to be related.

2. The obligations mentioned in paragraph 1 of this article do not apply when the transaction occurs within the framework of a business relationship that the non-bank financial institution already maintains with its customers.

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3. At a minimum, the following identification details mentioned in paragraph 2 of Article 5.º and their respective supporting documents contained in paragraph 3 of the same article of this notice must be required from the person or entity intending to carry out the transaction and, where applicable, their representatives and beneficial owners, namely:

a) individuals: details provided for in points i), ii), iii) and vi) of item a) of paragraph 2 of Article 5.º; b) legal persons: details provided for in points i), iv), vi) and vii) of item b) of paragraph 2 of Article 5.º; c) sole traders: details provided for in items a) and b) of this article; d) condominiums under horizontal property regime and autonomous estates: details provided for in item b) of this article.

4. If occasional transactions are requested on behalf of minors who, due to their age, do not hold any of the documents referred to in item a) of paragraph 2 of Article 5.º of this notice, the proof of the minor's identification details must be carried out by presenting a personal registration certificate if a foreign exchange resident, or an equivalent public document if a foreign exchange non-resident, to be presented by whoever demonstrates legitimacy as their legal representative to carry out the occasional transaction, and their respective identity must be verified at the time of carrying out the occasional transaction.

Article 8.
Remittance Service Providers

Without prejudice to the provisions of paragraph 1 of Article 7.º of this notice, remittance service providers must identify their customers, legal representatives and beneficial owners, and verify their respective identity, in accordance with Article 5.º of Law No. 34/11 of December 12, and in accordance with Article 4.º and paragraphs 3 and 4 of Article 7.º of this notice, regardless of the amount involved in the occasional transaction.

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Article 9.
Mechanisms for Identifying the Beneficial Owner

Pursuant to the provisions of paragraph 1 of Article 5.º of this notice, appropriate means of identifying the beneficial owner must include:

a) authenticated document confirming the identity of the beneficial owner; b) copy of the trust agreement or partnership agreement, or other equivalent document; c) Minutes of the Constituent General Assembly as well as the minutes of any alteration to the shareholder or partner structure; d) other reliable information that is publicly available and that the non-bank financial institution considers relevant.

Section II
Due Diligence Duties
Article 10.
Duty of Continuous Monitoring

1. Within the framework of the obligation provided for in item d) of Article 7.º of Law No. 34/11 of December 12, for the purposes of continuous monitoring of the business relationship, depending on the customer's risk assessment, the following information must be requested regarding the customer:

a) nature and details of the business, occupation or employment; b) record of changes of domicile; c) origin of the funds to be used in the business relationship; d) origin of initial and ongoing income; e) the various relationships between signatories and their respective beneficial owners.

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2. The non-bank financial institution, whenever it deems necessary, may request additional information from customers, based on the transactions carried out by them and the risk assessment performed, such as the Annual Report and Accounts, among others.

3. The senior management of non-bank financial institutions must be aware of the profile of the institution's high-risk customers.

Article 11.
Monitoring of Repeated Transactions

1. Within the framework of the obligation provided for in item d) of Article 7.º of Law No. 34/11 of December 12, non-bank financial institutions must monitor the execution of repeated transactions by customers, in order to identify those who attempted to split a high-value operation into several smaller, less conspicuous operations;

2. Under the provisions of the preceding paragraph, non-bank financial institutions must examine, among others, the following indicators:

a) the number of transactions carried out by the same customer, in a repetitive or concentrated manner over a 6-month period; b) transactions are carried out by the same customer over a 6-month period, and are usually carried out for the same amount or in the same currency; c) the number of customers who make value transfers to the same beneficiary.

Article 12.
Execution of Obligations by Third Parties

1. Pursuant to the provisions of Article 22.º of Law No. 34/11 of December 12, non-bank financial institutions are authorized to allow the execution of identification and due diligence obligations for customers by intermediaries or third parties to comply with the requirements of Article 5.º and items a), b) c) of Article 7.º, of Law No. 34/11 of

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December 12 or to capture business, provided that the following requirements are met:

a) non-bank financial institutions that resort to a third party must immediately obtain information on the requirements provided for in Article 5.º and items a), b) and c) of Article 7.º of Law No. 34/11 of December 12, as well as on Article 4.º and paragraph 1 of Article 5.º of this Notice; b) non-bank financial institutions must take adequate measures to ensure that copies of the documentation relating to the identification and due diligence requirements provided for in Article 5.º and items a), b) c) of Article 7.º, of Law No. 34/11 of December 12, as well as in paragraph 2 of Article 5.º of this notice, are made available in a timely manner; c) non-bank financial institutions must carry out and reduce to writing the measures taken to ensure that the third party is a regulated and supervised entity in matters of preventing money laundering and terrorist financing; d) non-bank financial institutions must reduce to writing the results of the verification carried out on the third party, regarding the measures implemented to effectively comply with the obligations provided for in Articles 5.º and 7.º of Law No. 34/11 of December 12.

2. For the purposes of this article, a third party is considered a financial institution in accordance with the provisions of paragraph 1 of Article 3.º of Law No. 34/11 of December 12, except money exchange houses and payment service providers, that is not headquartered in countries that do not apply or apply insufficiently the international requirements in matters of money laundering and terrorist financing.

3. This article does not apply to outsourcing or agency contracts.

Article 13.
Agents

1. Agents acting on behalf of non-bank financial institutions must carry out the customer identification and due diligence measures established in Article 5.º and items a), b) and c) of Article 7.º of Law No. 34/11 of December 12 and Articles 5.º and 7.º of this notice.

2. Agents must make available, whenever requested by the non-bank financial institution, the documentation obtained during the execution of the measures provided for in the preceding paragraph, as well as any other documentation deemed relevant.

3. Without prejudice to the provisions of the preceding paragraph, non-bank financial institutions must ensure compliance with legal and regulatory obligations by agents, and are legally responsible for any breach thereof.

4. Non-bank financial institutions