Exchange Law

NATIONAL ASSEMBLY

Law No. 5/97 of 27 June

Considering that, as a result of the reorganization of the financial system, it is essential to update principles and rules that have been in force until now and that are outdated, adapting the functioning of financial institutions to the current phase of the country’s economic development.

In this context, the present law aims to review in depth the aforementioned rules to allow and better discipline foreign exchange operations, as well as to establish a basic legal framework and a regulation of foreign exchange trade that takes into account the legitimate interests of the state and other economic entities.

EXCHANGE LAW

CHAPTER I (General Provisions)

ARTICLE 1 (Object)

The present diploma aims to regulate commercial and financial acts and operations with actual or potential repercussions on its balance of payments.

ARTICLE 2 (Scope of application)

It is subject to the provisions of this law and the respective complementary or regulatory diplomas to carry out:

1. a) foreign exchange transactions;
2. b) foreign exchange trading.

ARTICLE 3 (Exchange Authority)

The National Bank of Angola is the foreign exchange authority of the Republic of Angola and may delegate its powers to other entities about specific activities.

ARTICLE 4 (Exchange residence)

1. For the purposes of this diploma, the following are considered residents in the national territory:
2. a) natural persons who have their habitual residence in the country;
3. b) legal persons headquartered in the country;
4. c) subsidiaries, branches, agencies or any form of representation in the country of legal persons with headquarters abroad;
5. d) funds, institutes and public bodies endowed with administrative and financial autonomy, with headquarters in national territory;
6. e) national citizens who are diplomats, consular representatives or others, exercising their functions abroad, as well as the members of their respective families;
7. j) national natural persons whose absence abroad, for more than 90 days and less than 1 year, is due to studies or is determined by the exercise of public functions.
8. For the purposes of this diploma, the following are considered non-residents:
9. a) natural persons with habitual residence abroad;
10. b) natural persons based abroad;
11. c) natural persons who emigrate;
12. d) natural persons who are absent from the country for a period exceeding one year;
13. e) subsidiaries, branches, agencies or any form of representation in foreign territory of legal persons based in the country;
14. f) diplomats, consular representatives or the like, acting in national territory, as well as members of their respective families.
15. It is incumbent upon the National Bank of Angola to decide, in special cases, doubts about the status of residents of a given entity.

 

CHAPTER II (Exchange Transactions)

ARTICLE 5 (Definition)

Foreign exchange operations are considered:

1. a) the acquisition or sale of gold coined, in coin in any unworked form;
2. b) the acquisition or disposal of foreign currency;
3. c) opening and movement in the country. by residents or non-residents, from accounts in foreign currency;
4. d) the opening and movement in the Country, by non-residents, of accounts in national currency;
5. e) the settlement of any transactions in commodities, current Invisibles or capital.

ARTICLE 6. (Concept of foreign currency)

For the provisions of this diploma and the legislation that complements or regulates it, foreign currency is considered to be banknotes and coins that are legal tender in the countries of the issue and any other means of payment abroad expressed in currency or a unit of account used. in international clearings or payments.

ARTICLE 7. (Mandatory intermediation)

Foreign exchange transactions can only be conducted through a financial institution that is authorized to conduct foreign exchange trading.

ARTICLE 8 (Compensation)

The total or partial settlement of goods, non-current or capital transactions depends on a special authorization from the National Bank of Angola, by offsetting credits or debits arising from transactions of the same or different nature.

ARTICLE 9 (Opening and handling of accounts)

1. Foreign exchange residents are authorized to open and operate accounts in foreign currency with financial institutions domiciled in the national territory.
2. Individuals residing in foreign exchange may open and operate accounts in foreign currency with financial institutions and domiciled abroad.
3. Foreign exchange non-residents may open and operate accounts in national or foreign currency with financial institutions domiciled in the national territory.
4. The National Bank of Angola shall define the terms and conditions under which foreign exchange residents and non-residents may hold the accounts referred to in paragraphs 1 and 3 of this article.

 

CHAPTER III (Exchange Trading)

ARTICLE 10. (Exercise of foreign exchange trading)

1. Foreign exchange trading is defined as the habitual performance of foreign exchange operations on one’s accounts or on behalf of others.
2. The exercise of commerce depends on special authorization from the National Bank of Angola under the terms of the applicable legislation.

ARTICLE 11. (Special cases)

The National Bank of Angola may authorize entities linked to tourism, in particular hotel companies, travel and tourism agencies and duty-free shops, to carry out, under the terms and conditions established by it, operations to purchase foreign banknotes, traveler’s checks and other means payment to their customers.

ARTICLE 12. (Duty to provide information)

Entities authorized to trade in foreign exchange must send information, statistics, or any other elements requested to the National Bank of Angola in accordance with the latter’s instructions and within the established deadlines.

CHAPTER IV (Import, Export and Re-export of Gold, Currency and Securities)

ARTICLE 13. (Operations in gold)

1. The import, export and re-export of gold coined, in bars or other unworked forms are the exclusive responsibility of the National Bank of Angola.
2. It is subject to the authorization of the National Bank of Angola, under the conditions and terms determined by it, the international transit, in the Country, of gold coined, in bars or other forms not working.

ARTICLE 14. (Import, export and re-export of currency)

1. The import, export or re-export of banknotes and metallic coins with legal currency in the country or abroad, as well as travelers’ checks and other means of payment, may be carried out only by institutions authorized to carry out the exchange trade and with special authorization of the National Bank of Angola or under its terms and conditions.
2. The provisions of the previous number apply to the export of national currency out of circulation.

ARTICLE 15. (Import, export or re-export of securities)

The import, export or re-export of securities, such as shares or bonds, is carried out in accord with applicable legislation.

ARTICLE 16 (Control)

Customs only carry out the customs clearance of packages containing gold, coined or not, legal currency notes and metallic coins, travelers’ checks and other means of payment, as well as bank credit instruments, provided that the corresponding import authorization is presented to them, export or re-export issued by the National Bank of Angola.

ARTICLE 17. (Conjuncture measures)

In the case of a crisis or difficulty in the balance of payments, as well as financial market disturbances, the National Bank of Angola may, after notifying the Government, impose restrictions or other conditions on the operations authorized by this law.

 

CHAPTER V (Supplementary Diplomas)

ARTICLE 18. (Commodity, invisible and capital transactions)

The general principles to which the import, export and re-export operations of goods must comply are defined by decree, as well as current and capital invisible operations.

 

CHAPTER VI (Infractions and Sanctions)

ARTICLE 19. (Transgressions)

Under the terms of this law, they are considered punishable transgressions

1. a) foreign exchange trading, in violation of the provisions of article 10 of this law;
2. b) carrying out operations in violation of the provisions of articles 7 to 9 and 13 to 15 of this law;
3. c) a contravention of the provisions of the diplomas referred to in article 18 of this law.

ARTICLE 20 (Sanctions)

1. The transgression stated in subparagraph a) of the previous article of the present law is punishable with a fine of KZ: 300.00 to KZ: 40 000.00.
2. The transgressions specified in paragraphs b) and c) of the previous article of this law are punished with a fine of KZ; 600.00 to KZR: 1Q0 00Q.00.
3. The sanctions outlined in the preceding numbers are graduated based on the value of the operation as well as the objective and subjective gravity of the infraction, without regard to the provisions of the following article of this law.
4. The National Bank of Angola may propose to the Government that the penalties be changed whenever there is a change in exchange rates or when it deems it necessary and opportune.

ARTICLE 21. (Graduation of sanctions)

1. The amount of the fine shall never be less than the economic benefit achieved by the offending agent.
2. When the agent convicted of an exchange offence commits, before 2 years have elapsed from the conviction, another exchange offence, the minimum and maximum limits of the applicable fine are double those provided for in article 20 of this law.
3. The application of the sanctions provided for in this diploma does not prejudice criminal, disciplinary or civil liability, as provided for in other legal or regulatory precepts.

ARTICLE 22. (Liability of legal persons and managers)

1. Legal persons and companies, even if irregularly constituted and associations without legal personality, are jointly and severally liable for the payment of the fine and legal additions in which their directors, employees or representatives were sanctioned, for the practice offences punishable under the terms of the present law.

 

2. Holders of the administrative bodies of legal persons, even if irregularly constituted, and of associations without legal personality that may do so, if they have not opposed the practice of the infraction, are individually and subsidiarity liable for the payment of the fine and legal additions, even if have been dissolved or entered into liquidation.

ARTICLE 23 (Accessory sanctions)

The transgression provided in subparagraph a) of Article 19 of this law, as well as the transgression provided in subparagraph b) of the same article, if in this case there has been a recurrence, as defined in paragraph 2 of the previous article, may still be punished with:

1. a) Loss of assets used or obtained through illegal activity in favor of the State:
2. b) temporary or permanent disqualification from corporate or management functions in any institution subject to the supervision of the National Bank of Angola.
3. c) prohibition from carrying out foreign exchange operations for up to 3 years.

ARTICLE 24. (Prescription of transgressions)

1. The procedure for foreign exchange transgression expires 5 years after the infraction has been committed.
2. Fines and ancillary sanctions expire within the same period, counted from the date of the final conviction.

ARTICLE 25. (Instruction and process)

1. It is the responsibility of the National Bank of Angola to investigate foreign exchange violations and instruct the appropriate processes, as well as to conduct inspections of any entities in order to seize assets used or obtained through illicit activity.
2. Police authorities and other public entities or services must collaborate with the National Bank of Angola.
3. The Governor of the National Bank of Angola is responsible for enforcing the fines and other sanctions outlined in this statute.
4. The decision rendered under the terms of the previous number is subject to appeal under the general terms of the law.

ARTICLE 26. (Destination of fines)

The fines’ proceeds are returned to the state.

ARTICLE 27. (Coercive collection of fines)

1 The regulatory provisions of tax executions apply to the collection of fines if there is no appeal and they are not paid voluntarily.

2. The copy of the decision to apply the fine serves as the basis for the execution and is sent to the appropriate tax.
3. In the event of an appeal or a conviction: final, the regulatory provisions of the fine enforcement process to be instituted by the Public Prosecutor’s Office in the respective court shall apply to a fine collection.

 

CHAPTER VII (Final and Transitory Provisions)

ARTICLE 28. (Regulation)

1. The regulations required by this law must be prepared by the Government on a proposal from the National Bank of Angola, within 90 days from the date of its publication.
2. In general, The National bank of Angola is responsible for defining the regulatory principles and procedures to be followed in foreign exchange operations, as well as publishing or transmitting the technical and other instructions necessary for the proper implementation of the legal regime for the same operations.
3. The instructions referred to in the previous number come into force from the date of publication or transmission, unless otherwise stated.
4. This law applies to all foreign investments that are not specifically regulated by another law.

ARTICLE 29 (Revocation)

1. All legislation contrary to the provisions of this law, particularly the Law no. 9` R, of 2 July, is hereby revoked.
2. However, as long as they are not replaced by others, the complementary rules and regulations in force, in everything that does not contradict the present diploma, remain in force.

ARTICLE 30. (Doubts and omissions)

The doubts and omissions that arise in the interpretation and application of this law are resolved by the National Assembly.

ARTICLE 31. (Entry into force)

This law enters into force on the date of its publication.

Seen and approved by the National Assembly, in Luanda, on 19 February 1997.

The President of the National Assembly

Roberto António Victor Francisco de Almeida.

Enacted on 23 April 1997. To be published.

The President of the Republic

Jose Eduardo dos Santos.