Law of the National Bank of Angola

36 Pages·2013·0.11 MB·English

Law No. 16/10
Dated July 15
(DR Series I. No. 132)

With the Constitution of the Republic of Angola taking effect, there is an urgent need to adapt
the definition of the responsibilities of the National Bank of Angola, it becoming necessary to fit
the definition of the responsibilities of the National Bank of Angola in the area of participation,
definition of conduct and implementation of the country's monetary and foreign exchange
policy to the new Constitutional-legal framework;

Under the same circumstances, there is also the need to clarify the operational autonomy of
the National Bank of Angola in order to better ensure the preservation of the national currency
and ensure price stability and the national financial system;

Thus,

By mandate of the people, under the combined provisions of subparagraph b) of Article 161
and of paragraph 1 of Article 166, both from the Constitution of the Republic of Angola, the
National Assembly approve the following:

LAW OF THE NATIONAL BANK OF ANGOLA

Chapter I

Nature, Headquarters and purposes

Article 1

(Nature)

The National Bank of Angola is a legal entity of public law, endowed with administrative,
financial and personal autonomy.

Article 2

(Headquarters) 1

The National Bank of Angola has its headquarters in Luanda, and may have branches in other
parts of the country, as well as any form of representation abroad.

Article 3

(Main assignment and other functions)
1. As the central and issuing bank, the National Bank of Angola, ensures the preservation
of the value of the national currency and participates in the definition of the monetary,
financial and foreign exchange policies.

2. Notwithstanding the preceding paragraph, execution, monitoring and control of
monetary, exchange and credit, the management of the payment system and
management of the currency under the economic policy of the country are incumbent
upon the National Bank of Angola.

Chapter II

Capital and Reserves

Article 4

(Capital)

The capital of the National Bank of Angola is 270,000,000,000.00 Kwanzas, (two hundred
and seventy billion Kwanza) and can be increased by incorporation of reserves, deliberated
by the Board of Directors and ratified by the Title Holder of the Executive Branch.

Article 5

(Legal Reserve)

1. The National Bank of Angola shall establish a legal reserve, formed by the transfer of
income from each financial year calculated and distributed in accordance with Article 87 of
this Law.

If necessary, by resolution of the Board of Directors, provisions and other reserves may be
created, to prevent risks of depreciation or losses to which certain types of assets or
operations are particularly subject.

3. In the event of failure of the measures mentioned in the preceding paragraph, the
Executive through the Minister of Finance shall transfer marketable debt securities and
interest bearers which are required to avoid risks and losses considered in the above to the
ownership of the National Bank of Angola.
Chapter III

Monetary Issue

Article 6

(Issuing Bank)

1. The National Bank of Angola has the exclusive right to issue Bank notes and coins which
are legal tender and have purchasing power.

2. The purchasing power of notes is unlimited and that of coins is established in Legal
Diploma.

3. The National Bank of Angola also retains the exclusive right to issue commemorative
coins.

4. The legal arrangement of issue, preservation, destruction and exchange of the currency
shall be governed by its own law.

Article 7

(Printing and minting of notes)

1. The National Bank of Angola shall take the necessary steps for printing notes and minting
of coins and all matters pertaining to them, as well as for the security and safeguarding of
unissued bank notes and coins, and even the custody and destruction, as necessary, of
plates, dies and notes withdrawn from circulation.

2. Until the establishment of the Angola Mint, the National Bank of Angola is authorized to
contract, through a bidding process, foreign companies to print new bank notes of a new
monetary standard.

3. For negotiating with foreign manufacturers of bank notes and coinage, a special
commission for purchases integrated by the National Bank of Angola must be made by the
Chairman of the Executive Branch or whoever it delegates,

Article 8

(Notes and coins in circulation)
1. Notes and coins in circulation are considered those which, in exercising their functions,
are delivered to third parties by the National Bank of Angola and remain in their power
without the term of exchange specified in paragraph 1 of Article 10 of the present Law
having expired.
2. The liability of the National Bank of Angola is limited to the notes and coins in
circulation, notwithstanding paragraph 2 of Article 10 of this Law.

Article 9

(Features of notes and coins)

1. The types of notes, their plates and features as well as the face value of the coins and
their features shall be presented by the Chairman of the Executive Branch for the approval
of the National Assembly, under a motion of the National Bank of Angola.

2. The notes should bear the date of general issuance and be signed, under seal, by the
Governor.

Article 10

(Exchange of notes and coins)

1. The National Bank of Angola fixes and publicly announces that the deadline whereby
notes of any kind or plates and coins of any denomination which are withdrawn from
circulation should be exchanged.

2. Once such a term that will be fixed in accordance with the preceding paragraph has
lapsed, the notes and coins cease to be legal tender and are put aside from circulation,
but the obligation continues for the National Bank of Angola to receive and pay them
until five years have elapsed.

Article 11

(Deteriorated notes and coins)

1. The notes and coins that, in the act of exchange, are presented, in particular, perforated,
cut, torn or with any printed mark or that show signs of having been used for non-monetary
purposes, may only be accepted by the National Bank of Angola under the terms and
conditions set forth in the following paragraph.
2. The National Bank of Angola determines and makes public the conditions set forth for the
exchange of notes and coins that fall under the conditions referred to in the preceding
paragraph.

Article 12

(Seizure of notes)

1. The National Bank of Angola shall seize all notes and coins suspected of counterfeiting
or forgery or alteration of the face value, which are submitted, drawing up a report
whence includes the identification of notes and of the bearer, as well as grounds for
suspicion .

2. The report referred to in the preceding paragraph shall be referred to the appropriate
authorities for the purposes of the relevant procedure.

3. The National Bank of Angola may resort directly to any authority or agent thereof, for
the purposes specified in this article.

Article 13

(Reproduction or imitations of bank notes)

1. Reproduction or imitation of all or part of Bank notes and coins of the National Bank of
Angola as well as their respective distribution is forbidden.
2. The making of plates, dies or other technical means to carry out the measures referred
to in the preceding paragraph is also prohibited.

3. In duly justified circumstances, especially for educational purposes, the National Bank of
Angola may authorize the reproduction or counterfeiting of notes.

4. Breaches of the provisions of paragraphs 1 and 2 of this Article shall be punished under
the Penal Code.

Article 14

(Refurbishment of notes)

Lawsuit over refurbishment of notes is not allowed.
Article 15

(Destruction of notes)

Only the National Bank of Angola shall be allowed to destroy notes.

Chapter IV -

Functions of the Central Bank

Section I

General Provisions

Article 16

(General Functions)

1. Apart from the direction, execution, monitoring and control of the monetary, financial,
foreign exchange and credit policies under the economic policy of the Executive Branch,
it is incumbent upon the National Bank of Angola to:

a) act as sole Banker of the State;

b) advise the Executive in the monetary, financial and exchange domain;

c) participate with the Executive in the definition, directing, performance, monitoring and
controlling the exchange rate policy and its market;

d) act as an intermediary in international monetary relations of the State;

e) keep watch over the stability of the national financial system, ensuring, for this purpose,
the function of lender of last resort;

f) manage the foreign assets of the country that are entrusted to it, notwithstanding
provisions in special law.

g) participate in the preparation of the annual Executive financial programming of in order
to harmonize the management of foreign exchange reserves and credit to be granted by the
National Bank of Angola with the needs of development and stabilization of the economy.

2. It is also incumbent upon the National Bank of Angola to:
a) guarantee and ensure a system of information, compiling and treatment of monetary,
financial and foreign exchange statistics and other documents in the fields of their activities
in order to serve as an efficient tool for coordination, management and control;

b) draw up and maintain a complete register of the external debt of the country, as well as
carry out its management;

c) draw up the external balance of payments of the country.

ARTICLE 17

(Duty of information)

1. The National Bank of Angola may require any entity, public or private, that, the
information necessary to comply with the provisions of the preceding paragraphs, or for
reasons relating to their powers regarding monetary and foreign exchange policy and
operation of payment systems be provided directly, regulating them, inspecting them
and promoting their effectiveness.

2. Refusal to provide information referred to in the preceding paragraph, as well as their
falsity, is punished, respectively, with penalties for crimes of disobedience and
misrepresentation under the Penal Law.

Article 18

(Issuance of bonds in its name and on its behalf)

The National Bank of Angola may issue bonds in its name and on its behalf, sell them or
trade them with the public.

Article 19

(Acts and forbidden operations)

The National Bank of Angola is forbidden to:

a) rediscount, within the country, securities from the the trading portfolio of financial
institutions, for a term of less than three months, representing discount operations, bills,
promissory note, invoice statements and other securities of a similar nature;

b) promote the creation of banking and non-banking financial institutions subject to its
jurisdiction or any other companies, as well as participate in the capital of these entities,
except as provided in this charter, consented by special law or by reason of repayment of
credits, but never as a partner with unlimited liability;

c) own real estate, which are not necessary for the performance of its duties or the
furtherance of purposes of a social nature, except when it has obtained them by sale of
donated goods for payment in kind, by auction or by other legal means in carrying out the
obligations or intended to ensure such compliance and shall proceed in such cases, to the
sale of these properties, as soon as possible;

d) carry out insurance risk contracts as an insurer;

e) acquire or dispose of goods, except for repayment of credit or performance of its duties.

Section II

Relations with Financial Institutions

Article 20

(General Duties)

8

In its dealings with financial institutions domiciled in the country It is incumbent on the
National Bank of Angola to:

a) supervise them;

b) ensure their solvency and liquidity;

c) open accounts and accept deposits under the terms and conditions that the Board of
Directors may establish.

Article 21

(Supervision)

1. It is incumbent on the National Bank of Angola, in particular, to ensure oversight of the
financial institutions:

a) assessing applications for establishment of such institutions, as well as their merger or
change of purpose;
b) assess the suitability and fitness of Directors and of these institutions;

c) define the scope of supervision on a consolidated basis, issuing instructions to which the
institutions covered should comply;

d) determine and monitor the fulfillment of all the discreet ratios that these institutions
must observe in order to ensure their liquidity and solvency;

e) Including those set forth in the preceding paragraph; temporarily waive institutions from
the fulfillment of certain obligations, where there is a situation that may affect its normal
operation or that of the regular monetary and financial systems;

f) establish standards for the operation of institutions, in particular regarding its accounting
organization, structures of income and internal control, as well as the information to be
provided to the BNA and the public, and their frequency;

g) maintain the special registrations organized that are subject to special institutions under
its supervision.

2. It is also incumbent on the National Bank of Angola to:

a) conduct inspections of institutions subject to its supervision and to their respective
establishments, and proceed with investigations in any entity or any location where there is
suspicion of malpractice of financial or monetary exchange activities;

b) check all files, books and records and obtain proof of transactions, accounting records,
contracts, agreements and other documents it deems necessary to exercise its oversight
function;

c) establish, under the law, the appropriate procedures for verification of the breaches
committed.

Article 22

(Discount of bills of exchange, promissory notes, purchase and sale of securities)

The National Bank of Angola, under the terms and conditions established by the Board of
Directors may:

a) discount and rediscount bills and promissory notes issued or withdrawn for commercial
purposes, with two or more signatures, one being that of a Bank and maturing within 6 (six)
months from the date of their purchase by the National Bank of Angola;
b) buy and sell government bonds or other securities issued or guaranteed by the State,
which are part of a public issue.

Article 23

(Concession of Loans)

1. The National Bank of Angola may grant loans to financial institutions for a term not
exceeding three months, in the manner that the Board of Directors considers advisable,
guaranteed by:

a) assets that the National Bank of Angola are authorized to buy, sell or trade pursuant to
Article 47 of this Law;

b) the securities referred to in the previous Article;

c) other securities issued or guaranteed by the State that are part of a public issue provided
that they have coverage by the National Treasury;

d) invoice statements, "warrants" and other debt securities of a similar nature.

2. The loans referred to in the preceding paragraph may, exceptionally, be granted based
on other assets or even with a guarantee waiver, provided that in the opinion of the
Board of Directors, liquidity requirements of the borrowing financial banking institution
and the public interest are concerned.

Article 24

(Definition of discount rates, rediscount and lending)

The National Bank of Angola shall fix and publish its discount, rediscount and lending rates,
and may establish differential rates, maximum limits for the various categories of
transactions and maturities

Article 25

(Constitution of reserve requirements)

1. The Board of Directors may require that the financial institutions constitute obligatory
reserves and other responsibilities as may be fixed by them

2. The required reserves are formed by deposits at the National Bank of Angola, at the
percentage determined by the latter.