Angola Moves to Prevent Financial Crime: Banking Regulations Come into Effect

A Significant Step Towards Combating Money Laundering and Terrorism Financing

In early 2016, the Financial Action Task Force (FATF) visited Angola, praising the country’s progress in adopting a legal and regulatory framework to combat money laundering and the financing of terrorism. As a result of this commitment to international standards, Angola has been removed from the list of countries posing a risk to the global financial system.

Challenges Facing Angolan Banks: De-Risking

One of the key challenges facing banks in Angola is de-risking, a phenomenon where correspondent banks assess and mitigate the risk of money laundering and terrorist financing associated with respondent banks in high-risk jurisdictions. This has had a devastating impact on countries like Angola, which rely heavily on international bank transactions.

• Dollar-transaction constraints: The country’s dollar-transaction constraints have been exacerbated by the de-risking phenomenon, making it increasingly difficult for businesses and individuals to conduct cross-border transactions.
• Reduced banking correspondences: Western banks have been hit with large fines for non-compliance, leading to a significant reduction in bank correspondence.

Addressing Pressing Challenges: The Angolan Banking Association’s Task Force

In response to these challenges, the Angolan Banking Association (ABANC) has established a Task Force focused on Compliance and Anti-Money Laundering issues. This team of experts will work towards addressing pressing challenges and improving effective compliance levels in the country’s financial sector.

• Improving compliance levels: The establishment of this Task Force marks an important step towards technical compliance with international standards, demonstrating Angola’s commitment to preventing financial crime and maintaining its reputation as a secure financial hub.
• Continuous improvement: There is still a need for continuous improvement, but the public recognition of progress made by the FATF has improved the image of the Angolan banking system.