Angola Tightens Banking Regulations to Combat Financial Crime

The National Bank of Angola (BNA) has introduced a set of new regulations aimed at strengthening the country’s banking sector and preventing financial crime. This move is part of a broader effort to promote transparency and accountability in the industry.

Strengthening Transparency and Accountability

Under the new rules, all banking institutions operating in Angola will be required to:

• Adopt joint-stock company form: Banking institutions must adopt the form of joint-stock companies (sociedades anónimas) to increase transparency and accountability.
• Maintain minimum share capital: Institutions must ensure a minimum share capital of 7.5 billion kwanzas represented by nominative shares.

These changes will enable regulators to track financial transactions more effectively and identify potential cases of money laundering or other illicit activities.

Enhancing Regulatory Control

The BNA will now require all branches of overseas banking institutions operating in Angola to:

• Obtain authorization: Branches must obtain authorization from the regulator before commencing operations.
• Ensure Angolan personnel: Two-thirds of branch personnel must be national citizens to prevent foreign banks from using Angolan subsidiaries for illicit financial transactions.

Strengthening Non-Banking Financial Institutions

The new regulations also place strict controls on non-banking financial institutions, including:

• Exchange offices
• Microcredit entities
• Payment services entities
• Asset management and investment companies

These institutions will be subject to the supervisory powers of the BNA and the jurisdiction of the securities market supervisory body, the Capital Markets Commission (CMC).

Industry Response

Industry insiders have welcomed the new regulations as a significant step forward in combating financial crime in Angola.

“The rules demonstrate a clear commitment by the Angolan government to strengthening its financial regulatory framework,” said one banking expert. “By increasing transparency and accountability among banks, regulators can more effectively identify and prevent illicit financial activities.”

Implementation Timeline

The new regulations come into effect immediately, with all banking institutions required to comply within the next six months.

Failure to comply will result in severe penalties, including fines and potential closure of non-compliant institutions.