How Banks Detect Funds Fraud in Angola: New Law Introduces Tougher Regulations

Angola has taken a significant step towards combating funds fraud in its banking system with the approval of a new law aimed at promoting greater safety, effectiveness, and reliability in the Angolan Payments System. The Law no. 40/20, which came into effect on December 16, revokes an earlier law and introduces stricter regulations to prevent fraud and ensure transparency.

Key Provisions

• Defines payments services as any activity that allows for the deposit or withdrawal of currency from a payment account, execution of payment operations, issuance of payment instruments, acquisition of foreign exchange, and other related services.
• Establishes rules for data protection, dispute resolution, and user information.
• Requires banks to provide users with clear and simple information about their services, including fees and charges.

Dispute Resolution

• Introduces a three-step proceeding for disputes between payment service providers and the Angolan National Bank, which includes mediation and arbitration stages.
• Obliges providers to allow users to access alternative dispute resolution methods.

Fraud Detection

• Gives banks the power to treat personal data only when necessary to prevent or detect fraud related to services provided.
• Requires express consent from users for such treatment and notification of the Data Protection Agency accordingly.

Government’s Goal

• The Angolan Government has emphasized that the new legislation is aimed at enhancing the growth of the country’s economy by providing a fair, transparent, and clear framework for the operation, monitoring, regulation, and management of the payments system.

Impact on Funds Fraud

• The introduction of these measures is expected to significantly reduce funds fraud in Angola’s banking system, providing a safer and more reliable environment for both consumers and businesses operating in the country.