Notice no. 1/23 of 30 January of National Bank of Angola (NBA) came into force on 31 January, establishing new rules applicable to banking financial institutions regarding the opening, maintenance, operation and closure of accounts of natural and legal persons. Notice No. 1/23 updates the rules applicable to the sector to the evolution of the financial system. This Notice also takes into account the new legal and regulatory requirements on the prevention and fight against money laundering, financing of terrorism and the proliferation of weapons of mass destruction. The previous Notices on these matters (Notice no. 3/09 of 5 June, Notice no. 10/16 of 5 September and Notice no. 2/17 of 3 February) have therefore been revoked.
We highlight the following changes:
1. Which obligations and diligence must banking financial institutions comply with when opening an account?
Banking financial institutions ("banking institutions") shall ensure the collection of all necessary information to identify and characterize the customer and his/her representatives, when applicable, as well as to know the reason for opening the account. They should develop customer files, to be completed by the applicants, for this purpose.
When opening an account, which may be in person or remotely, by the customer or a third party, the banking institution must be able to identify the origin of the deposited funds.
If the deposit is by bank transfer, the depositary institution can only accept such funds if they come from an account opened with a banking institution that complies with identification and diligences measures, and if it is possible to identify the ordering party.
The deposit of funds originating from an account held by a different person can only be accepted on credible justification.
2. Which information must be provided to the account holders by the Banking Institutions?
Banking institutions maintain their duty to provide the general and particular conditions of the contract for opening an account, and must now file evidence of their availability.
The general conditions must include, in addition to those already required by the previous Notices:
(i) communication channels between the banking institution and the customer;
(ii) conditions of debit and credit entries;
(iii) treatment of customer instructions and handling of errors;
(iv) netting of credits;
(v) treatment of personal data;
(vi) conditions for processing costumers’ transfers ordered and received, execution times and value date;
(vii) handling of unauthorised or incorrectly executed operations and the respective responsibilities of the banking institution and the customer.
They must also make available an information sheet, in accordance with existing regulations, on the information duties regarding bank deposits.
3. What procedures have to be implemented by banking institutions?
With the entry into force of the new regime, banking institutions should implement mechanisms in order to:
(i) issue statements of deposit accounts, the first copy free of charge, through the defined communication channels;
(ii) identify the accounts with no movement for 24 months or longer (dormant accounts), and apply restrictions on debit movement to ensure the security of deposits;
(iii) contact the account holder, or any heirs, in order to ensure that the account is maintained, and if there is no activity for 15 years or opposition from the account holder or heirs, close the account.
4. Does Notice No. 1/23 of 30 January establish specific rules for the operation and maintenance of bank accounts?
Yes. Although the operation and maintenance of bank accounts are governed by the general and particular conditions between the customer and the banking institution, this notice sets out specific rules for (i) accounts held by minors, (ii) by deceased persons, (iii) by persons under bankruptcy or insolvency proceedings, and (iv) foreign currency accounts:
(i) Accounts held by minors are operated by their legal representatives, and it is not permitted to contract credits or provide payment instruments, except for a debit card that may be granted to minors over the age of 14. The debit card must be requested by the legal representative who must sign a term of responsibility, limited to previously agreed maximum daily amounts.
(ii) Accounts held by deceased persons should be blocked until the conclusion of the succession process, moment in which the account should be closed. The banking financial institution shall transfer the values within the account according to the succession process. Blocked accounts may only be operated by the heirs upon presentation of the legal documents authorizing the operation, namely death certificate and certificate of inheritance or equivalent document.
(iii) Accounts held by a person in bankruptcy or insolvency proceeding must be blocked, regardless of whether they are single or collective accounts, until instructed by the competent judicial authorities.
(iv) The movement of accounts in foreign currency shall be governed by the legislation and regulations governing foreign exchange operations, and, in principle, bank transfers in foreign currency are only admissible between accounts domiciled at banking institutions in Angola, by foreign exchange residents provided that:
i. they are legal persons in a group relationship;
ii. they are natural persons in a family relationship
iii. the originator and the beneficiary are the same person.
5. Can the bank refuse the account holder's request to close the account?
Yes. The new Notice provides that banking institutions may refuse the request for closure of the bank account by the account holder when:
(i) the holder has outstanding debts towards the banking institution;
(ii) there is a judicial obligation to maintain the account;
(iii) there is a legal impossibility to do so.
6. Can the bank itself close the bank account on its own initiative?
Yes. The new regime currently in force provides the right of the banking institution to proceed with the closure of accounts, for which purpose it should notify the account holder at least 60 days in advance.
It may also proceed to immediate termination on the basis of:
(i) falsity or inaccuracy of the information provided by the customer;
(ii) breach of contractual conditions by the client;
(iii) failure to comply with the requirements of applicable laws and regulations on identification and diligence;
(iv) incompatibility in the client's risk profile;
(v) extinction of a legal person;
(vi) imposition of a judicial or administrative authority.
The closure of the account implies the immediate cancellation of all the means of movement of the account, which must be destroyed or delivered to the banking institution. If the client does not withdraw or transfer the available balance in the account by the date of its closure, nor issue an instruction on the destination to be given to the funds at the time of closure, the bank may transfer the funds to an internal accounting account, until receiving the client's instructions for their transfer or withdrawal.
