WIRE TRANSFER SCANDALS: ANGOLA TAKES STEPS TO COMBAT MONEY LAUNDERING

Introduction

Luanda, Angola - In a bid to combat money laundering and the financing of terrorism, Angola has introduced new regulations aimed at increasing transparency in wire transfers.

Understanding Wire Transfers

According to the country’s Financial Intelligence Unit (FIU), wire transfers are any transaction conducted through electronic media by a financial institution on behalf of a natural or legal person to make a sum of money available to a beneficiary in another financial institution. The originator and the beneficiary may be the same person.

The Role of the Financial Intelligence Unit

The FIU, an independent and autonomous central national unit, is responsible for:

• Receiving, analyzing, and disseminating information suspected of pertaining to money laundering, terrorism financing, and proliferation of weapons of mass destruction.
• Operating according to its own regulations and cooperating with international counterparts to prevent and combat these crimes.

National Risk Assessment

As part of its efforts to combat money laundering and terrorist financing, Angola has introduced a National Risk Assessment (NRA) to:

• Identify, assess, and understand the risks related to these crimes at the national level.
• Conducted every three years, with relevant findings made available to all competent authorities, entities subject to this law, and other entities that may benefit from knowing the outcome of the assessment.

Sectoral Assessments

In addition, sectoral assessments will be conducted by supervisory authorities and other entities responsible for preventing and combating money laundering and terrorist financing. These assessments will be updated annually.

Prohibitions

The regulations also prohibit:

• The establishment of shell banks in Angolan territory.
• The opening or maintenance of anonymous accounts or accounts under obviously fictitious names.

Obligations for Entities Subject to the Law

Entities subject to this law, including financial institutions, are required to:

• Assess risks
• Identify and diligence
• Refuse suspicious transactions
• Keep records
• Report suspicious activities
• Abstain from engaging in illegal activities
• Cooperate with authorities
• Maintain secrecy
• Conduct oversight
• Provide training

Risk Management Measures

The regulations also require entities subject to this law to:

• Adopt suitable measures to identify, assess, understand, and mitigate risks of money laundering and terrorist financing.
• Develop tools or information systems to effectively manage these risks and continuously reassess risk in the institution under review.

Conclusion

The Angolan government’s efforts to combat money laundering and terrorist financing are aimed at protecting the country’s financial system and preventing the misuse of its financial institutions for illegal activities.