Financial Crime World

Angola Cracks Down on Money Laundering: Central Bank Introduces Stringent Regulations for Financial Institutions

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In a bid to combat money laundering, terrorist financing, and proliferation of weapons of mass destruction, the Angolan Central Bank (BNA) has introduced stringent regulations for financial institutions in the country. By way of Order 2/24, dated March 22, 2024, the BNA has adopted measures aimed at preventing and combating these illicit activities.

Key Regulations

  • Banks are required to conduct a risk assessment process every:
    • 12 months
    • or 24 months in certain cases
  • Financial institutions must suspend any operation or freeze an account if it involves a person or entity listed on a blocked, sanctions, or restricted list.
  • Anonymous accounts and fictitious names are outlawed.
  • Banks are required to keep and preserve information for any operation equal to or higher than USD 15,000.
  • Corporate clients must be identified through the ultimate beneficiary owner (UBO), and banks must obtain additional information on their clients’ sources of funds and wealth.

Enhanced Risk Management Procedures

  • Reinforced procedures for high-risk jurisdictions
  • Private banking clients
  • Politically exposed persons (PEPs)
  • Banks are required to report any suspicious transactions to the BNA’s Financial Information Unit immediately.

Compliance Requirements

  • Each bank must have a dedicated Compliance Officer to oversee these regulations.
  • Annual reports on policies and procedures to prevent and manage risks associated with money laundering, terrorist financing, and proliferation of weapons of mass destruction are required from financial institutions.

Termination of Client Relationships

  • In cases where a bank decides to terminate its relationship with a client:
    • The bank must immediately stop any operations related to that client.
    • Request the transfer of funds within 30 days.

The introduction of these regulations is aimed at strengthening Angola’s efforts to combat illicit activities and protect its financial system.