Regulation (NAP) - Rules and Procedures for the Banking Service Tariff

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 1/70
PSBS	22/02/2016	19/02/2016	03/2016

SUBJECT: Rules and Procedures Regarding the Amendment and Disclosure of the Banking Services Tariff

As it is necessary to establish rules and procedures regarding the tariff adopted by banking institutions, which includes guiding principles for charging commissions and charges, interest rates, and applicable conventions;

As it is equally necessary to provide the banking services consumer, at any stage of contracting, with all information likely to condition their choice regarding a specific financial operation, namely clarifying and understanding all associated commissions, expenses, and interest rates;

Considering the regulatory and supervisory authority's action indispensable in analyzing and evaluating institutions regarding transparency and breadth of information, thereby contributing to increased national financial literacy and consequently greater protection of banking institution clients;

Therefore, the Central Bank of São Tomé and Príncipe, using the powers conferred by letters d) and f) of paragraph 2 of Article 8 of its Organic Law – Law No. 8/92, of August 3, determines the following:

Article 1.º
(Scope and Object)
The present Standard applies to all banking institutions, hereinafter designated Institutions, and establishes the requirements they must observe in disclosing to the public commissions, interest rates, and other charges arising from the use of financial products and services.

Article 2.º
(Definitions)
For the purposes of this Standard, it is considered:

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 2/70
PSBS	22/02/2016	19/02/2016	03/2016

a) Automated Teller Machine (ATM): automatic equipment of a payment system network, which allows bank card holders to perform various banking operations without needing to go to counters.

b) Clients: users of the financial products and services offered by Institutions.

c) Commissions: amounts charged by Institutions to their respective clients for the provision of services.

d) Penalties: amounts charged by Institutions to their clients, corresponding to lost profits or damages arising from the client's waiver or non-compliance with contractual terms.

e) Tariff: table containing updated information regarding charges, commissions, rates, and other conditions of financial products and services made available to the public by Institutions.

f) Durable medium: any instrument that allows the consumer to store information addressed specifically to them, so that in the future they can easily access it during a period appropriate for the purposes of the information and allows unaltered reproduction.

g) Nominal Annual Interest Rate (TAN): expressed as a fixed or variable percentage, applied on an annual basis to the amount of credit used, which translates the remuneration of the credit operation and does not include any charges;

h) Effective Annual Total Charge Rate (TAEG): rate expressed as an annual percentage of the total credit amount, which translates the total cost of credit to the client of the credit operation, including interest and all charges of any nature linked to the credit contract or that, having an accessory nature, are necessary for obtaining the credit or for obtaining it under the terms and conditions established, namely required insurance premiums.

i) Intra-bank Transfer: transfers made between accounts within the same institution, even if belonging to different holders.

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 3/70
PSBS	22/02/2016	19/02/2016	03/2016

Article 3.º
(General Principles)

1. The charging of commissions, interest rates, and other charges for service provision by Institutions must be stipulated in the contract signed between the institution and the client or in the prevailing tariff.

2. When charging commissions, rates, and other charges, at any contractual stage, Institutions must observe the following principles:
   a) Transparency of information; b) Good faith; c) Proportionality; d) Reasonableness and e) Appropriateness.

Article 4.º
(Tariff)

1. Institutions must have a complete tariff of the general conditions for all retail financial products and services made available to the public.

2. The information in the tariff must be true, objective, up-to-date, and expressed in clear and accessible language.

3. The tariff consists, according to the range of operations integrating the institution's activity object, of:
   a) Commission and Charges Leaflet; b) Interest Rates Leaflet; c) Other elements.

4. The information referred to in paragraph 1 of this article must allow, namely:
   a) The minimum and maximum value of all commissions chargeable to clients; b) The indicative value of main charges; c) The effective annual total charge rate (TAEG), resulting from credit operations, without prejudice to the publication of the nominal annual rate (TAN);

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 4/70
PSBS	22/02/2016	19/02/2016	03/2016

d) Information associated with interest rates applicable to deposit and credit operations, indexers, and conventions, namely the number of days underlying interest calculation and rounding of the interest rate; e) The value-date and availability dates regarding deposit account movements.

Article 5.º
(Tariff Structure)

1. Institutions must adopt the tariff structure and content, as defined in Annexes I and II of this Standard.

2. The method of filling out and procedures to be adopted for disclosing information and reporting the tariff are defined in Annex III of this Standard.

Article 6.º
(Tariff Amendments)

1. Institutions must submit to the Central Bank, at least 10 (ten) business days in advance, a copy of the tariff before its effective publication.

2. The Central Bank may request clarifications it deems appropriate regarding the submitted tariff.

3. Publication is suspended until all clarifications requested by the Central Bank are provided.

4. Institutions are responsible, before the Central Bank and third parties, for the accuracy, truthfulness, and up-to-dateness of information provided in the tariff and its amendments.

5. Tariff amendments must be accompanied by a description of the banking products and services offered to clients, with due identification of commissions, charges, and other conditions subject to modification.

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 5/70
PSBS	22/02/2016	19/02/2016	03/2016

6. The Central Bank's evaluation of the tariff corresponds to a continuous process within its supervision and oversight functions, namely regarding the typification and adequacy of commissions, so validation does not end with the initial tariff analysis or subsequent amendments.

Article 7.º
(Tariff Disclosure)

1. The tariff must be disclosed to the public, at least 30 (thirty) days before its entry into force.

2. Institutions must ensure the tariff is available in all their public service locations, which shall be directly accessible and well identified, drafted in clear and easily understandable language, and ensure updated information is disclosed via an easy and direct consultation device, including electronic means.

3. When made available on the website, the tariff must be complete and up-to-date, in a highly visible location, directly accessible, and easily identifiable, without requiring registration by interested parties.

4. In promoting products and services, banking institutions must refrain from using misleading or abusive advertising.

Article 8.º
(Contractual Information)

1. Tariff disclosure does not prejudice the provision of information and conditions applicable within the marketing and negotiation of a financial product or service, which must be received by the client, in paper or another durable medium, at least 30 (thirty) days prior to the client's commitment to the contract, including cases where Institutions interact with clients through distance communication means.

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 6/70
PSBS	22/02/2016	19/02/2016	03/2016

2. Credit and deposit contracts must specify the conditions applicable to the operation, namely regarding charges, interest rates, exchange rates, and prevailing conventions, including their application method, qualification, and indexer.

3. Whenever permitted by the institution, under legal and contractual terms, to modify agreed conditions on its own initiative, such modification cannot be realized merely by reference to the tariff; Institutions must communicate the content of amendments to their clients, at least 30 (thirty) days prior to the intended application date, without prejudice to compliance with other legal deadlines.

4. Institutions must ensure that information provided under the preceding paragraph allows clients to identify conditions subject to alteration, under penalty of contract termination.

5. Institutions are obliged to provide clients with clear, precise, correct, legible, and up-to-date information on offered banking products and services, their essential characteristics, commissions, and other charges levied on operations, so that at each moment the client has an exact notion of them and can make a decision based on them.

6. All information referred to in the preceding paragraph must:
   a) Be transmitted in Portuguese, unless there is an express agreement between the parties to use another language; b) Allow easy reading by a reader with average visual acuity, through reproduction in "twelve" point letters, using "Arial" font type as reference when provided via paper or other durable medium; and c) Be free of any charges, except in cases where parties agree to charge commissions for providing additional or more frequent information, or transmitting information via communication channels different from those specified in the contract, provided that provision or transmission occurs at the client's request.

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 7/70
PSBS	22/02/2016	19/02/2016	03/2016

7. In cases foreseen in the second part of letter c) of the preceding paragraph, charges must be adequate and correspond to costs actually borne by the institution.

Article 9.º
(Duty of Assistance)

1. Institutions must clarify the client adequately, so as to allow them to evaluate whether the proposed contract adapts to their needs and financial situation, including providing all information stipulated in the previous article, explaining essential product characteristics, as well as describing their specific effects on the client, including consequences of non-payment.

2. When requested to do so, Institutions must prove compliance with obligations stipulated in this article.

Article 10.º
(Commission and Charges Leaflet)
The Commission and Charges Leaflet must contain updated information on all commissions chargeable to clients regarding financial products and services marketed by Institutions, according to the structure defined in Annex I of this Standard.

Article 11.º
(Interest Rates Leaflet)

1. Information in the Interest Rates Leaflet must be updated according to market conditions and allow the public to know rates applied by Institutions in operations they habitually perform, according to the structure defined in Annex II of this Standard.

2. The Interest Rates Leaflet must contain the following information regarding credit and deposit operations:
   a) Nominal interest rate of operations;

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 8/70
PSBS	22/02/2016	19/02/2016	03/2016

b) Indexers used in credit and deposit operations with variable rates, identified by their respective designations; c) Calculation method and rounding of the indexer; d) Interest calculation convention; e) Applicable spread interval for credit operations and TAEG calculated for a representative example.

3. The Interest Rates Leaflet must be sent to the Central Bank within 10 (ten) days after the end of each quarter, referencing the last day of March, June, September, and December of each year.

Article 12.º
(Compliance with Information Duty)

1. In fulfilling obligations established in Article 8, the institution must define the communication method it considers most effective, unless another specific form is agreed with the client.

2. It is up to the Institution to prove compliance with information requirements established in this Standard.

Article 13.º
(Instructions)
The Central Bank may issue instructions deemed appropriate for compliance with the provisions of this Standard.

Article 14.º
(Sanctions)
Non-compliance with this Standard subjects the institution and its responsible parties to sanctions stipulated in Article 42 of Law No. 9/92, of August 3 - Financial Institutions Law, in harmony with the Standard on Supervisory Action and Application of Penalties.

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 9/70
PSBS	22/02/2016	19/02/2016	03/2016

Article 15.º
(Clarification of Doubts)
Doubts arising from the interpretation and application of this Standard shall be submitted in writing to the Central Bank of São Tomé and Príncipe for clarification purposes.

Article 16.º
(Tariff Adjustment)
Institutions are obliged to submit their tariffs to the Central Bank, prepared according to the model in the annex, within 60 days after publication of this Standard.

Article 17.º
(Entry into Force)
This Standard enters into force on the date of its publication.

Central Bank of São Tomé and Príncipe, February 19, 2016.

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 10/70
PSBS	22/02/2016	19/02/2016	03/2016

ANNEX I. Commission and Charges Leaflet

Tariff

(Institution Name)

(Entity Type)

[Consult the Commission and Charges Leaflet] [Consult the Interest Rates Leaflet]

Entry into force date: _ _ - _ _ - _ _

The complete Tariff of [institution designation] contains the Commission and Charges Leaflet (which incorporates minimum and maximum values for all commissions as well as indicative values of main charges) and the Interest Rates Leaflet (which contains information on representative interest rates).

The Tariff can be consulted at the counters and public service locations of [institution designation], and on [institution website].

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 11/70
PSBS	22/02/2016	19/02/2016	03/2016

Commission and Charges Leaflet Annex I

(Institution Name)
Supplementary Information

Particular Clients
DEPOSIT ACCOUNTS
1.1. Deposit on demand
1.2. Other deposit modalities
CREDIT OPERATIONS
2.1. Housing credit and related contracts
2.2. Personal credit
2.3. Auto credit
2.4 Credit line and current accounts
2.5. Bank overdrafts
2.6. Other credits to individuals
CREDIT AND DEBIT CARDS
3.1. Credit cards
3.2. Debit cards
3.3. Other cards
3.4. Card operations
3.5. Other card services
CHEQUES
4.1. Request and delivery of cheque booklets
4.2. Other services with cheques
TRANSFERS
5.1. Transfer orders
5.2. Other services with transfers
COLLECTIONS
6.1. Collection of commercial instruments
6.2. Other services with collections
SERVICE PROVISION
7.1. Purchase and sale of foreign currency notes
7.2. Guarantees provided
7.3. Other services
OPERATIONS WITH FOREIGN COUNTRIES
8.1. Guarantees provided on foreign countries

[Consult the Interest Rates Leaflet Annex II]

Complaints | Entry into Force: _ _ - _ _ - _ _ | General Information

Other clients
DEPOSIT ACCOUNTS
9.1. Deposit on demand
9.2. Other deposit modalities
CREDIT OPERATIONS
10.1. Credit lines and current accounts
10.2. Bank overdrafts
10.3. Other credits
CREDIT AND DEBIT CARDS
11.1. Credit cards
11.2. Debit cards
11.3. Other cards
11.4. Card operations
11.5. Other card services
CHEQUES
12.1. Request and delivery of cheque booklets
12.2. Other services with cheques
TRANSFERS
13.1. Transfer orders
13.2. Other services with transfers
COLLECTIONS
14.1. Collection of commercial instruments
14.2. Other services with collections
SERVICE PROVISION
15.1. Purchase and sale of foreign currency notes
15.2. Guarantees provided
15.3. Other services
OPERATIONS WITH FOREIGN COUNTRIES
16.1. Documentary remittances
16.2. Documentary credits
16.3. Guarantees provided on foreign countries
16.4. Other operations on foreign countries

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 12/70
PSBS	22/02/2016	19/02/2016	03/2016

General Information

(Institution Name)
Entry into Force: _ _ - _ _ - _ _

Complaints
To receive and resolve complaints, contact:
(Complaint and customer support service)
[Service Designation]
[Address]
[Phone/fax]
[Email/Website]

Any complaint may also be directed to the Consumer Support Office of the Central Bank of São Tomé and Príncipe:

Central Bank of São Tomé and Príncipe
Consumer Support Office
Independence Square
CP 13 São Tomé
Tel.: 2243 700 extension 136 consumidor@bcstp.st/www.bcstp.st

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 13/70
PSBS	22/02/2016	19/02/2016	03/2016

(Institution Name)
Entry into force:
SUPPLEMENTARY INFORMATION
(INDEX)

Dates - Value

Banking Operations	Value-Date	Availability Date	Observations
Deposits
1. Cash
Counter
[others (if applicable)]
I. On a business day
II. On a non-business day
2. Cheques and other values
Counter
I. on the same institution
II. on another institution (Drawees)
III. on another institution
[others (if applicable)]
Received Transfers
Internal (between accounts of the same institution)
National interbank
I. urgent
II. normal
International
I. urgent
II. normal
[others (if applicable)]
Deposit account movements
[Account description]
Constitution / Reinforcement
Early mobilization
Payment of remunerative interest
[others (if applicable)]
Other Banking Operations
Discount operations
[others (if applicable)]

Legend: D: Day of operation realization/ D+1: Next business day/ D+2: 2nd business day ATM: Automated terminals [Note (X)] [Explanation]

Duty of Information
Value-date: the date from which the transfer or deposit becomes effective, movable by the beneficiary, and any interest calculation on creditor or debtor balances of deposit accounts begins. Availability date: the moment from which the holder can freely proceed to move deposited funds in their deposit account, without being subject to penalties for mobilizing these funds. Business day: the period of the day when the institution is open to the public during normal operating hours (between 8h30 and 15h).

Reviewed	Revocation Data:

Banco Central de S. T. P.	NAP PERMANENT IMPLEMENTATION STANDARD	CODE
		DS 01
PROPOSER(S)	ENTRY INTO FORCE	ISSUANCE DATE	DOC. NO.	PG 14/70
PSBS	22/02/2016	19/02/2016	03/2016

(Institution Name)
Entry into force:

1. DEPOSIT ACCOUNTS (PARTICULARS)
   (INDEX)

1.1 Deposit on Demand

	Commissions and Charges STD		Additional Tax	Other conditions
	Min/Max	Annual Value
[Account Type (if applicable)]
[Identification of accounts and respective conditions d