Financial Crime World

Angola Takes Steps to Boost AML/CFT Efforts Amid De-Risking Challenges

In a bid to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework, Angola has made significant progress in recent years. According to the Financial Action Task Force (FATF), the country’s efforts have been recognized, but there is still room for improvement.

The Challenge of De-Risking

De-risking is a phenomenon that has seen correspondent banks reassess their relationships with respondent banks in high-risk jurisdictions. This has resulted in significant consequences for countries like Angola, leading to increased transaction constraints and challenges related to US dollar-denominated bank correspondence.

The Impact of De-Risking on Angola’s Banking Sector

  • The country’s banking sector has been severely affected by the withdrawal of correspondent banks.
  • Transaction constraints have become a major issue, making it difficult for Angolan businesses to operate efficiently.
  • De-risking has resulted in increased costs and reduced access to international financial markets.

Progress Made in AML/CFT Efforts

Despite the challenges posed by de-risking, Angola has made significant progress in its AML/CFT efforts. In 2016, the FATF conducted a visit to assess the implementation of its recommendations, noting considerable progress in adopting a legal and regulatory framework. As a result, Angola was removed from the list of countries posing a risk to the global financial system.

Key Achievements

  • The establishment of a Task Force focused on Compliance and Anti-Money Laundering issues.
  • Improved processes and procedures within the Angolan financial system.
  • Recognition by the FATF of progress made in AML/CFT efforts, improving the image of the Angolan banking system.

Ongoing Challenges and Future Directions

While Angola has made significant strides in its AML/CFT efforts, there are still challenges ahead. The country’s commitment to international best practices will be crucial in addressing these issues and maintaining its reputation as a responsible financial sector player.

Next Steps

  • Continued efforts from supervisors, financial system actors, and the Bank of Angola (BNA) to improve AML/CFT frameworks.
  • Ongoing monitoring and evaluation of progress made in AML/CFT efforts.
  • Alignment with international best practices to maintain a robust and effective AML/CFT framework.