BNA Order no. 14/2022, which was published in the Official Gazette of 5 July, updates the rules applicable to foreign exchange capital transactions carried out by corporate entities, namely contracts and other legal acts, by means of which rights or obligations are established or transferred between residents and non-residents, including credit operations.
According to the BNA Order no. 14/2022, the above-mentioned operations are now exempt from licensing by the National Bank of Angola ("BNA"), although the banking financial institution (i.e., commercial bank or intermediary) is responsible for validating compliance with the following elements:
- Existence of a complete and updated opening process of the client account, in accordance with the legislation on the Prevention and Combating of Money Laundering of the Financing of Terrorism and Proliferation of Weapons of Mass Destruction;
- Full knowledge of the client by obtaining the following information:
- Financial information.
- Confirmation of the non-existence of debts with the tax authority.
- Confirmation of the non-existence of debts in an irregular situation registered in the Information and Credit Risk Centre.
Financial statements audited or certified by an independent entity registered in the Order of Accountants and Expert Accountants of Angola or approved by the Court of Auditors, when applicable, may also be requested.
In addition, please note that commercial banks should also perform a thorough assessment of the foreign exchange operations requested by their clients, taking into consideration the following elements, among others:
- Level of risk attributed to the Client under the legislation on the prevention of money laundering and combating the financing of terrorism and the proliferation of weapons of mass destruction;
- Nature and extent of the client's business and its consistency with the purpose and value of the operation;
- Legitimacy of the ownership of the funds in local currency used for the purchase of the foreign currency or of the Client's own resources in foreign currency, within the scope of its activity;
- History of foreign exchange operations carried out by the Client and its coherence with the operation to be carried out;
- Nature and extent of the activity of the beneficiary of the operation and its coherence with the purpose and value of the operation, when the nature and value of the operation justifies an evaluation of the beneficiary;
- Documents supporting the operation, their authenticity, validity and adequacy, considering the value and nature of the operation.
Regarding the repatriation of profits and dividends, as well as of disinvestment amounts resulting from investments made by legal entities resident abroad, it should be noted that the same must be transferred to a bank account domiciled in a commercial bank based in Angola, within 60 (sixty) days from the date of payment of the same. The foreign currency credited to this bank account may be moved under the terms of the regulations in force regarding the movement of accounts in foreign currency.
Finally, it should be noted that this BNA Order came into force on 6 July 2022 and revoked BNA Instruction no. 1/03 of 7 February.
António Vicente Marques – Sociedade de Advogados, RL
Luanda, July 2022