Effective Risk Management Model Crucial for Anti-Money Laundering Compliance
Angola has implemented a robust anti-money laundering (AML) framework that requires financial institutions and businesses to adopt effective risk management models to prevent money laundering, terrorism financing, and proliferation of weapons of mass destruction. A recent analysis by experts reveals the importance of these measures in detecting and reporting suspicious transactions.
Reporting Large Currency Transactions
Subject entities must report to the Financial Intelligence Unit (UIF) all transactions involving physical currency exceeding USD 15,000 or more. Additionally, reports are required for transactions involving:
- Low-value banknotes exchanged for high-value banknotes
- Different currencies
- Cheques
- Traveller’s cheques
- Securities
- Non-deposited amounts
Suspicious Transaction Reporting
Besides reporting large currency transactions, subject entities must also report suspicious transactions to the UIF, regardless of the amount involved. These reports can be submitted via:
- Hard copy documents
- Other means indicated by the UIF
Customer Identification and Due Diligence
Financial institutions and businesses are required to conduct customer identification and due diligence to verify the identity of:
- Natural persons
- Legal entities
- Trusts
- Other legal arrangements
This includes:
- Identifying ultimate beneficiaries
- Obtaining information on clients’ business and risk profile
- Maintaining continued monitoring of business relationships
Special or Enhanced Due Diligence Requirements
Enhanced due diligence requirements apply in cases where clients are involved in high-risk activities, such as:
- Operations with politically exposed persons
- Shell banks
- Distant transactions
Prohibition on Correspondent Relationships with Shell Banks
Angolan banks and payment service providers are prohibited from establishing correspondent relationships with shell banks. They must also avoid engaging in correspondent relationships with financial institutions that allow accounts to be used by shell banks.
Information Sharing Mechanisms
Subject entities are obligated to promptly provide information requested by:
- The UIF
- Supervisory authorities
- Judicial authorities
However, there is currently no mechanism for facilitating information sharing between financial institutions and other businesses subject to AML controls.
Beneficial Ownership and Control Information
While a Central Beneficiary Register does not exist in Angola, it is crucial that accurate information about beneficial ownership and control of legal entities be maintained and available to government authorities. This information can assist financial institutions with their AML customer due diligence responsibilities and government authorities in identifying suspicious transactions.
By adopting effective risk management models and complying with these regulations, Angola’s financial institutions and businesses can play a vital role in preventing money laundering, terrorism financing, and proliferation of weapons of mass destruction.