Notice No. 22/2012 of April 25

NOTICE NO. 22/2012

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 other conventions 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 and the financing of terrorism;

Considering international best practices in the prevention of money laundering and the financing of terrorism;

Considering that one of the essential components of the system for preventing and combating money laundering and financing of terrorism consists in implementing customer identification procedures [Know Your Customer (“KYC”) and Know Your Business (“KYB”)] policies, and taking into account that these policies imply the establishment of adequate internal controls and procedures enabling banking financial institutions to know their customers;

Given the need for banking financial institutions to carry out identification and due diligence measures [Customer Due Diligence (“CDD”)] in order to know their customers, not only regarding their identification but also, with respect to legal entities, their structure and economic activity, taking into account the type of financial products and services acquired, as well as transactions carried out;

Considering further that identification and due diligence procedures enable banking financial institutions to identify and mitigate the money laundering and financing of terrorism risks that their customers may represent, and taking into account that the degree of due diligence depends on each customer's risk profile, as they require enhanced or simplified due diligence measures;

Having regard to the foregoing, it is imperative to define the necessary requirements for establishing business relationships and in the context of occasional transactions, adapting them to new identification and customer knowledge requirements and business relationship monitoring imposed for reasons of legal certainty and prevention of the use of the financial system for illicit purposes, aiming, in particular, to protect consumers of financial products and services from the eventual fraudulent use of their identity, as well as to safeguard the integrity of said system;

With a view to regulating the requirements that, from a strictly banking perspective, must be met in establishing the business relationship, namely account opening, independently of compliance with additional obligations of a fiscal, civil or other nature to which institutions are subject;

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

HEREBY DETERMINES:

CHAPTER I
General Provisions

Article 1.
Subject Matter
Pursuant to Article 36 of Law No. 34/11 of December 12 – Money Laundering and Financing of Terrorism Combat Law – the National Bank of Angola regulates, through this notice, the conditions for exercising the obligations provided in said Law, namely identification and due diligence obligations, as well as the establishment of a money laundering and financing of terrorism prevention system, including the creation of a Compliance Officer in the organizational structure of banking financial institutions.

Article 2.
Scope
The provisions of this notice apply to banking financial institutions under the supervision of the National Bank of Angola.

Article 3.
Definitions
Without prejudice to the definitions established in Article 2 of Law No. 34/11 of December 12 – Money Laundering and Financing of Terrorism Combat Law, for the purposes of this notice, the following are understood:

1. “Correspondent Bank” - A financial institution that establishes a partnership agreement with another financial institution for it to represent;
2. “Customer” - A natural person, legal entity or any other juridical entity with which a banking financial institution establishes or has established a business relationship or carries out an occasional transaction;
3. “Compliance Officer” - The person responsible for implementing the money laundering and financing of terrorism prevention system, including its internal control procedures, and also responsible for centralizing information and reporting operations susceptible to money laundering and financing of terrorism to the Financial Information Unit and other competent authorities;
4. “Suspicious Operations” - Operations that may constitute the crime of money laundering or financing of terrorism;
5. “Non-Profit Organizations” - A legal entity or organization primarily engaged in the creation and/or distribution of non-profit funds, namely for charity, social solidarity, religious purposes, among others;
6. “Private Banking” - Specialized service provided to clients with high net worth by banking financial institutions;
7. “Representative” - Any person or entity with legal powers to act on behalf of another;
8. “Foreign Exchange Resident and Non-Resident”:
   a) foreign exchange resident - the following are considered foreign exchange residents in national territory:
   i. natural persons with habitual residence in the country;
   ii. legal entities with headquarters in the country;
   iii. branches, subsidiaries, agencies or any other forms of representation in the country of legal entities with headquarters abroad;
   iv. funds, institutes and public bodies endowed with administrative and financial autonomy, headquartered in national territory;
   v. Angolan citizen diplomats representing consular or equivalent offices exercising functions abroad, as well as members of their families;
   vi. Angolan citizen natural persons whose absence abroad for a period exceeding 90 days and less than 1 year is due to studies or determined by the exercise of public functions.
   b) foreign exchange non-resident - the following are considered foreign exchange non-residents in national territory:
   i. natural persons with habitual residence abroad;
   ii. legal entities with headquarters abroad;
   iii. natural persons who emigrate;
   iv. natural persons 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 entities with headquarters in the country;
   vi. diplomats, consular representatives or equivalent acting in national territory, as well as members of their families.
   c) for the purposes of paragraph a) in this point, the following are considered habitual residents in national territory:
   i. all Angolan citizens living in Angola;
   ii. all foreign citizens holding a residence card issued under applicable legislation.

CHAPTER II
Identification and Due Diligence Procedures

Section I
Customer Identification

Article 4.
Customer Identification Obligation

1. The identification obligations provided in Article 5 of Law No. 34/11 of December 12 – Money Laundering and Financing of Terrorism Combat Law - must be adopted by banking financial institutions regarding their customers, and where applicable, their respective representatives, beneficial owners, and, if applicable, other participants in the transactions.
2. The aforementioned identification obligations apply not only to new customers of the banking financial institution but may also apply to existing customers, depending on the assessment of money laundering and financing of terrorism risk associated with them.
3. In case of doubts regarding the true identity of the customer, and where applicable, the representative or beneficial owner, which cannot be satisfactorily resolved, the banking financial institution must refuse to carry out any transactions.

Article 5.
Establishment of Business Relationship

1. Banking financial institutions must collect and conserve information regarding customers, their representatives and beneficial owners before the start of the business relationship, requesting at minimum the following elements:
   a) Natural persons:
   i. full name and signature;
   ii. date of birth;
   iii. nationality;
   iv. complete residential address or, if not possible, any other contacts considered valid by the banking financial institution;
   v. profession and employer, where applicable;
   vi. name of the identification document used, identification number, expiry date and issuing authority;
   vii. nature and amount of income;
   viii. Tax Identification Number (optional).
   b) Legal entities:
   i. full corporate name;
   ii. corporate object and business purpose;
   iii. headquarters address;
   iv. Tax Identification Number (TIN);
   v. commercial registry number;
   vi. identity of shareholders holding 20% or more of the capital and voting rights;
   vii. identity of corporate attorneys/proxies and their respective mandates;
   c) Regarding individual traders, the elements necessary to initiate the business relationship include the Tax Identification Number (TIN), corporate name, headquarters and corporate object, in addition to the identification elements referred to in paragraph a) of paragraph 1 of this article; d) Regarding condominiums under horizontal property regime and autonomous patrimony, contracted under general legislation, the regime provided in paragraph b) of paragraph 1 of this article applies with necessary adaptations; e) In commercial companies in the process of incorporation, account opening and operations are regulated by applicable legislation.
2. The verification of information must be proven through the presentation of the following valid documents:
   a) Natural persons:
   The identification elements mentioned in points i), ii) and iii), paragraph a) of paragraph 1, must be verified as follows:
   • by foreign exchange residents upon presentation of the identity card or residence card issued by the competent authority, showing photograph, full name, date of birth and nationality;
   • by foreign exchange non-residents upon presentation of the passport, except for Angolan nationality non-residents who may present an identity card showing photograph, full name, date of birth and nationality.
     i. the complete residential address, profession, respective employer when existing, must be proven through any document, means or procedure considered valid, appropriate and sufficient to demonstrate the provided information;
     ii. the identification element mentioned in point viii) of paragraph a) of paragraph 1 must be verified through presentation of the Tax Identification Card or equivalent issued by the National Directorate of Taxes of the Ministry of Finance.
     b) Legal entities:
     i. regarding resident legal entities, the identification elements mentioned in points i), ii), iii) and v) of paragraph b) of paragraph 1 must be verified through presentation of the commercial registry certificate issued by the Commercial Registry Office or another public document proving it, namely a copy of the Official Gazette containing the publication of the statutes or notarial deed certificate;
     ii. regarding non-resident legal entities, the identification elements mentioned in points i), ii) and iii) of paragraph b) of paragraph 1 must be verified through presentation of a commercial registry certificate or other valid public document, duly certified by the competent authorities of the country of residence, and authenticated by the Angolan consular representation in the country of origin;
     iii. the identification element mentioned in point iv) of paragraph b) of paragraph 1 must be verified through presentation of the Tax Identification Card or equivalent issued by the National Directorate of Taxes of the Ministry of Finance;
     iv. the identification elements mentioned in point vi) of paragraph b) of paragraph 1 must be proven through presentation of the Minutes of the Constituent General Assembly as well as the minutes of amendment to the shareholder or partner structure;
     v. the identification element mentioned in point vii) of paragraph b) of paragraph 1 must be proven through a written declaration issued by the legal entity itself, containing the names of management body holders, attorneys and representatives.
     c) In establishing a business relationship on behalf of minors who, due to their age, do not hold any of the documents referred to in paragraph a) of paragraph 2, the verification of their identification elements must be carried out by presenting a personal ID card if foreign exchange resident, or an equivalent public document if foreign exchange non-resident, to be presented by someone demonstrating legitimacy as their legal representative for establishing the business relationship, and their identity must be verified upon commencement of the business relationship.

Article 6.
Timing of Identity Verification
Without prejudice to the preceding article, the verification of identity by banking financial institutions may be carried out after the start of the business relationship, provided that:
a) the money laundering and financing of terrorism risk is reduced; b) it occurs in the shortest possible time; c) it is essential not to interrupt normal business conduct, under the following circumstances, namely:
i. transactions carried out without the physical presence of the customer;
ii. securities transactions.
d) the banking financial institution adopts a money laundering and financing of terrorism prevention system that includes the conditions under which post-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 its establishment and identity verification.
e) the contrary does not result from legal or regulatory provision.

Article 7.
Occasional Transactions

1. The banking financial institution must collect and conserve information whenever, in person or remotely, a customer intends to carry out occasional transactions whose amount exceeds USD 15,000.00 (fifteen thousand United States Dollars), regardless of whether the transaction is carried out through a single operation or several operations that appear related.
2. The obligations mentioned in paragraph 1 of this article do not apply when the transaction occurs within a business relationship that the banking financial institution already maintains with its customers.
3. At minimum, the following identification elements mentioned in paragraph 1 of Article 5 and their respective supporting documents contained in paragraph 2 of the same article must be requested from the person or entity intending to carry out the transaction, and where applicable, their representatives and beneficial owners, namely:
   a) natural persons: elements provided in paragraph a), i), ii), iii) and vi) of paragraph 1 of Article 5; b) legal entities: elements provided in paragraph b), i), iv), vi) and vii) of paragraph 1 of Article 5; c) individual traders: elements provided in paragraph a) of this article; d) condominiums under horizontal property regime and autonomous patrimony: elements provided in paragraph 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 paragraph a) of paragraph 2 of Article 5, the verification of their identification elements must be carried out by presenting a personal ID card if foreign exchange resident, or an equivalent public document if non-resident, to be presented by someone demonstrating legitimacy as their legal representative to carry out the occasional transaction, and their identity must be verified upon carrying out the occasional transaction.

Article 8.
Mechanisms for Identifying the Beneficial Owner

1. The banking financial institution must require from the beneficial owner the same elements and supporting identification documents it would require from the customer, under paragraph a) of paragraph 1 and paragraph a) of paragraph 2 of Article 5.
2. Appropriate means for determining the identity of the beneficial owner must include, namely:
   a) authenticated document confirming the identity of the beneficial owner; b) copy of the fiduciary agreement or partnership agreement, or other equivalent document; c) minutes of the Constituent General Assembly as well as minutes of amendment to the shareholder or partner structure; d) other reliable information, publicly available and considered relevant by the banking financial institution.

Section II
Due Diligence Duties

Article 9.
Duty of Continuous Monitoring

1. Within the obligation provided in paragraph d) of Article 7 of Law No. 34/11 of December 12, for the purposes of continuous monitoring of the business relationship, and depending on the assessment of money laundering and financing of terrorism risk, the following information must be requested:
   a) nature and details of the business, occupation or employment; b) record of changes in domicile; c) origin of funds to be used in the business relationship; d) origin of initial and continuous income; e) various relationships between signatories and their respective beneficial owners.
2. The banking financial institution, whenever it considers 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.

Article 10.
Performance of Obligations by Third Parties

1. Pursuant to Article 22 of Law No. 34/11 of December 12, banking financial institutions are authorized to allow the performance of identification and due diligence obligations regarding customers by intermediaries or third parties to comply with the requirements of Article 5 and paragraphs a), b) c) of Article 7, of Law No. 34/11 of December 12 or to capture business, provided the following requirements are met:
   a) banking financial institutions that resort to a third party must immediately obtain information on the requirements provided in Article 5 and paragraphs a), b) and c) of Article 7, of Law No. 34/11 of December 12, as well as Article 4 and paragraph 1 of Article 5 of this Notice. b) banking financial institutions must take adequate measures to ensure that copies of the documentation regarding identification and due diligence requirements provided in Article 5 and paragraphs a), b) c) of Article 7, of Law No. 34/11 of December 12, as well as paragraph 2 of Article 5 of this notice, are made available in a timely manner; c) banking financial institutions must record and reduce to writing the measures taken to ensure that the third party is a regulated and supervised entity in matters of money laundering and financing of terrorism prevention; d) banking financial institutions must record in writing the results of the verification carried out on the third party, regarding the measures implemented to effectively fulfill the obligations provided in Articles 5 and 7 of Law No. 34/11 of December 12.
2. For the purposes of this article, a third party is considered a financial institution under paragraph 1 of Article 3 of Law No. 34/11 of December 12, except exchange houses and payment service providers, which are not located in countries that do not apply or insufficiently apply international requirements regarding money laundering and financing of terrorism.
3. This article does not apply to outsourcing or agency contracts.

Section III
Simplified Due Diligence Duties

Article 11.
Simplified Due Diligence Procedures

1. According to Article 9 of Law No. 34/11 of December 12, banking financial institutions must collect sufficient information to verify whether the customer falls into one of the following categories:
   a) The State, or a legal entity of public law, of any nature, integrated into central or local administration; b) Authority or public body subject to transparent accounting practices and subject to audit/oversight;
2. Banking financial institutions must demonstrate to the National Bank of Angola, if it so deems necessary, the verification that customers fall into the aforementioned categories.
3. The banking financial institution must define criteria to determine if the collected information is sufficient to verify that the customer falls into one of the aforementioned categories or professions, namely, the existence of publicly available information confirming their identity.

Section IV
Enhanced Due Diligence Duties

Article 12.
Politically Exposed Persons
In addition to the identification and due diligence duties provided in the preceding Sections of this Chapter and according to paragraphs 1, 2, 3 and 5 of Article 10 of Law No. 34/11 of December 12, banking financial institutions must ensure that:
a) information regarding identification processes related to PEPs is communicated to the institution's employees for whom it is relevant; b) the processes referred to in the preceding paragraph are part of the training program for money laundering and financing of terrorism prevention of banking financial institutions; c) due diligence procedures are adapted to each specific case, taking into account a risk-based assessment of the acquired services or products, individual circumstances, origin and