Angola Steps Up Fight Against Money Laundering with New Regulations

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In an effort to strengthen its financial system against illicit activities, Angola’s Central Bank (BNA) has introduced new regulations aimed at preventing and combating money laundering, terrorist financing, and proliferation of weapons of mass destruction.

Measures to Prevent Illicit Activities

The measures, outlined in Order 2/24 of March 22, 2024, require banks to adopt strict risk management procedures and report any suspicious transactions. Some of the key requirements include:

• Conducting a thorough risk assessment every 12 months or 24 months in special cases to identify high-risk clients, operations, and jurisdictions
• Suspending any operation or freezing an account if it is deemed suspicious or involves a person or entity listed on a sanctions or restricted list
• Prohibiting anonymous accounts and those opened under fictitious names

Enhanced Risk Management Procedures

Banks are required to implement enhanced risk management procedures for high-risk jurisdictions, private banking clients, and politically exposed persons (PEPs). Some of the measures include:

• Identifying the ultimate beneficiary owner (UBO) of corporate clients and obtaining information about their source of funds and wealth
• Conducting proof that funds were obtained in a legitimate manner, client reputation and background checks, as well as information on family relatives and business partners

Reporting Suspicious Transactions

Banks are required to report any suspicious transactions to the Financial Information Unit immediately. Additionally, they must create internal channels for receiving reports and complaints.

Designated Compliance Officer

Each bank must designate a Compliance Officer responsible for ensuring that the institution adheres to anti-money laundering regulations.

Termination of Client Relationship

In cases where a bank decides to terminate its relationship with a client, it must:

• Stop all operations related to that client
• Close their account
• Request them to transfer funds to another bank or withdraw within 30 days

Annual Reporting Requirements

Banks are required to submit an annual report to the BNA outlining their policies and procedures for preventing and managing risks associated with money laundering, terrorist financing, and proliferation of weapons of mass destruction.

Conclusion

The new regulations are expected to significantly enhance Angola’s ability to detect and prevent money laundering activities, ultimately strengthening its financial system.