Regulation (NAP) - Request for Exchange Coverage

Central Bank of S.T.P.	P A P <br> PERMANENT APPLICATION STANDARD (NAP)	CODE <br> RD 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC. NO.	PAGE
POG	22/02/2010	19/02/2010	05/2010	1/2

Subject: REQUEST FOR EXCHANGE COVERAGE

Considering that, in accordance with NAP 16/2009, exchange coverage requests will be fully satisfied provided that the required conditions are met;

Considering the need to establish a procedural framework regarding exchange coverage and, through this means, promote efficiency and speed in managing exchange coverage requests submitted to the Central Bank;

Desiring the standardization of documentation that serves as the basis for the timely processing of requests;

The Central Bank of São Tomé and Príncipe, in the exercise of its powers attributed by Articles 31, 32, and 34 of its Organic Law and in conjunction with Article 1 of Decree-Law No. 32/99, determines the following:

Article 1.
Subject Matter

This Permanent Application Standard applies to all financial institutions duly authorized to conduct banking activities;

Article 2.
Request for Exchange Coverage

1. The exchange coverage request by any financial institution must be submitted in writing, in Portuguese and signed by at least two duly accredited officers of the institution.
2. Exchange coverage requests must be formulated in the currencies of the transaction.
3. Exchange coverage requests must comply with the provisions of Article 3 of this NAP.

Article 3.
Request Documentation

The exchange coverage request must be supported by the following information:
a. Name and type of institution; b. Listing of the amounts for imports and other elements to which the foreign exchange is destined;
c. Supporting documents for the transaction, as established by the Central Bank;
d. Date of the client's request and the date on which the transaction must be executed.

Central Bank of S.T.P.	P A P <br> PERMANENT APPLICATION STANDARD (NAP)	CODE <br> RD 09
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC. NO.	PAGE
POG	22/02/2010	19/02/2010	24/2009 <br> 05/2010	2/2

Article 4.
Supporting Documents

a. Proforma invoices; b. Final invoices;
c. Other adequate supporting documents;

Article 5.
Processing

1. Exchange coverage requests must be submitted to the Central Bank of São Tomé and Príncipe no later than 11:00 AM on the second working day of the week and are formulated, primarily, based on requests from the immediately preceding week.
2. The requests referred to in the preceding paragraph are processed on the third working day of the week, observing the provisions of this NAP.
3. During the processing of coverage requests, consideration is given to the reporting of the requesting institution's exchange position, in accordance with NAP 14/2009 regarding the immediately preceding week, as well as previous statistics.
4. Requests that do not comply with the provisions of this NAP will not be processed.

Article 6.
Penalties for Non-Compliance

Financial institutions that fail to observe the provisions of this NAP are subject to penalties stipulated in NAP No. 14/2009, within the scope of infringement of the duty to provide reliable information to the Central Bank.

Article 7.
Entry into Force

This Permanent Application Standard enters into force under the legal terms.

Central Bank of São Tomé and Príncipe in S. Tomé, on February 19, 2010.