Restructuring

Regulatory investigations can occur in the following situations:

By the BNA:

• In carrying out its supervisory functions, it is the responsibility of the supervisory body to monitor the activity of financial institutions under its responsibility supervision and promote risk assessment and control, as well as well as the sufficiency of own funds to support these risks.
• When customers submit complaints based on non-compliance with rules governing the activity.
• In case of suspicion of the laws mentioned in topic I.
• In case of violation of the laws mentioned in topic I.

Additionally, the CMC continuously monitors the entities subject to its supervision. The CMC can carry out regulatory investigations:

• when investor protection is at stake;
• to prevent systemic risk; and
• to prevent and reprimand of actions contrary to the law or regulation.

For committing infringements/infractions, the regulatory penalties to be applied consist of warnings, fines and fines for particularly serious infringements. For example:

• AOA50 million and AOA150,000 to AOA150 million, depending on whether it is applied to a natural or legal person.
• AOA300,000 to AOA150 million and AOA500,000 to AOA500 million, depending on whether the natural or legal person is applied.

Some examples of infractions are: the exercise of the activity in disregard of the rules on registration with the supervisory body; the violation of the rules on subscription or payment of the capital stock, as to the term, amount and form of representation; the omission of information and communications due to the respective supervisory body, within the time limits established and the provision of information incomplete.

In addition to the above-mentioned fines, ancillary sanctions may be imposed on the offender, such as: seizure and confiscation of the object of the offence, including its economic product; disqualification from exercising corporate positions and management functions in financial institutions, for a period of six months to three years, in certain cases provided for by law or three months to one year, in others, also provided for by law.

The court is not bound by the assessment of the fact as a misdemeanor and may, ex officio or at the request of the Public Prosecutor's Office, convert the case into a criminal case.

If such a situation occurs, the court should apply the regime established in the Criminal Code and complementary legislation to the crime in question. This may vary from case to case and punishments may include prison sentences and criminal fines.

However, there are certain criminal offences for which the law already provides for the criminal institute to apply, such as the illegal activity of receiving deposits and other repayable funds, for which the law provides that those who carry out activities consisting of receiving deposits or other repayable funds from the public, on their own account or on behalf of others, without the necessary authorization, shall be punished by imprisonment of up to five years.

Notwithstanding this provision, the regime established in the Criminal Code and complementary legislation shall always apply.