On 14 April, the Angolan National Bank (BNA) enacted Notices 4/21 and 5/21. Although the scope of these two notices is quite different, they both have a strong impact on the Angolan economy.

I - Notice 4/21

Notice 4/21 revoked Notice 5/18 of July 17 with the purpose of updating the rules and procedures applicable to foreign exchange transactions for the settlement of imports and exports of goods in the Republic of Angola. In this regard, we would highlight the following innovations introduced by this new diploma:

     · Import operations are no longer subject to licensing by the BNA regardless of the relevant settlement period;

     · The maximum period allowed for advance payments in import operations was reduced from 180 (one hundred and eighty) days to 90 (ninety) days;

     · Regardless of the method of payment of the import operations, commercial banks shall only debit the relevant amount in the importer’s bank account when the funds are ready to be transferred abroad, which is contrary to the former regime under which banks should seize the relevant funds upon submission of the transfer request by the importer;

     · This new Notice allows for greater flexibility in goods export operations, introducing important novelties such as the possibility of the exporters to freely dispose the revenues from their export operations, unlike the previous regime which had strict rules in this regard by imposing the sale 50% of the foreign currency and limitations to dispose the remaining 50%.

II - Notice No 5/21

Notice 5/21 updated the rules and procedures on foreign exchange operations carried by resident and non-resident individuals, including current invisible, goods and capital transactions and revoked the well-known Notice 17/20 of 3 August.

In this regard, we would highlight the following changes:

     · Regarding transactions ordered by foreign exchange residents, the maximum annual amount allowed increased from USD 120,000 to USD 250,000;

     · Unlike what was foreseen in the previous Notice, capital operations carried out by foreign exchange residents, including, for example, the acquisition of real estate or securities, no longer depends on the prior authorization from the BNA, except when the aforementioned USD 250,000.00 threshold is exceeded;

     · Specifically regarding transactions ordered by non-residents, this Notice maintains the obligation to open a local bank account in a commercial bank to which their salaries must be transferred to, by the relevant employers, but simplifies the documentation to be presented to local banks for the purpose of repatriation of such funds by waiving the need to (i) present the visa which entitles the relevant individual to carry a paid activity in Angola, (ii) demonstrate that the credits in the relevant employee's bank accounts were directly transferred by the employer (iii) submit proof of payment of the relevant tax obligations. However, the obligation to be paid locally is not applicable to the oil sector which, according to this Notice, will be subject to a specific regulation to be approved (which, in practice, formalizes the moratorium previously granted by the BNA to this sector).

III - Conclusion

In conclusion, both Notice 4/21 and Notice 5/21 represent an extremely important effort by the BNA to simplify, facilitate, promote, and expedite foreign exchange operations which fall within the scope of these new diplomas.