Financial Crime World

ANGOLA ADOPTS NEW LAW TO BOOST PAYMENT SYSTEM SECURITY AND EFFICIENCY

Luanda - The Angolan government has approved a new law aimed at strengthening the country’s payment system and improving its efficiency. Law No. 40/20, published on December 16, replaces Law No. 5/05 of July 29.

Key Features of the New Law

  • Adapts the legal framework to the actual volume of transactions in the Angolan market and between Angolan and international markets.
  • Evolves financial products to promote greater safety, effectiveness, and reliability.
  • Defines procedures for operating the payment system.

Data Protection

  • Permits treatment of personal data by payment service providers when necessary to prevent or detect fraud related to services.
  • Providers may only access personal data that are necessary to provide services and must obtain express consent from users.

Dispute Resolution

  • Establishes rules for dispute resolution between payment service providers and users, as well as between providers and the Angolan National Bank.
  • A three-step procedure is established for disputes between providers and the bank:
    • Attempt to reach a consensus through mediation
    • Arbitration
  • Providers are obligated to permit users access to alternative dispute resolution methods.

Duties of Information

  • Payment service providers must transmit relevant information in an easily comprehensible, clear, and simple way.
  • Providers have the burden of proof concerning the fulfillment of these duties.

User-Provider Disputes

  • Users may obtain operation rectification if they communicate the occurrence to the provider within a 13-month period after the operation date.
  • Providers are obligated to permit users access to alternative dispute resolution methods.

Payment Service User Termination Contracts

  • Allows users to terminate their contract unilaterally at any time unless a notice period is specified in the contract.
  • In cases where the contract has been in force for less than six months, there are no costs associated with termination.

Goals of the New Law

  • Enhance economic growth
  • Ensure that economic agents have the best conditions regarding the payment system

Implementation Timeline

  • The law will come into effect on a date to be determined by the Angolan National Bank.
  • Providers are obligated to adapt their contracts in force to the new legislation within a six-month period.
  • Amendments shall be informed to users and are considered accepted if users do not notify opposition to the new conditions within two months after receipt of information.

Author

Duarte Marques da Cruz, partner at Portuguese law firm MC&A, specialized in international business advisory with a special focus on Lusophone markets.