Banco Nacional de Angola (BNA - National Bank of Angola) has adjusted the limits for exchange operations on imports of goods on letter of credit (L/C) and advance payment terms.

Importers can freely negotiate the payment terms for importing goods on other payment terms.

New limits

The limits are now set at 10 per cent of the total transaction value under L/C terms while advance payments or advances of up to US$50,000 can be made.

For advanced payments or advances of a value higher than those defined, the exporter must present an irrevocable bank guarantee of good performance of the same value, issued by a foreign bank recognised by the importer's bank.

The limits expressed in US dollars apply to equivalent amounts in any other foreign currencies.

AML/CFT warning

The notice specifically warns banks and financial institutions that before carrying out any foreign exchange transaction for the payment of imports they must ensure strict compliance with the requirements of Angola's anti-money laundering and counter financing of terrorism regulations.

The BNA also warns that financial institutions are subject to penalties for any violations of the new notice.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.