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Angola Embarks on Compliance Overhaul for Banking Sector

LUANDA - In a bid to modernize its financial system, the Angolan government has introduced a new law governing payments in the country. The move comes as part of efforts to strengthen the economy and enhance transparency.

Strengthening the Economy through Regulatory Changes

The new legislation requires banks operating in Angola to adapt their systems to comply with international standards. This includes implementing more secure payment methods such as electronic funds transfer between banks, which is now considered the most common and reliable method of payment in Angola.

• The introduction of electronic funds transfer will reduce the reliance on cash transactions and minimize the risk of theft or loss.
• This new system will also make it easier for companies to manage their finances and track their transactions.

Boosting Demand for Local Currency

The government has also introduced stricter regulations on foreign exchange transactions, requiring companies operating in Angola to use local currency (kwanza) for all payments, including those made to suppliers and contractors outside of Angola. This move aims to boost demand for the kwanza and strengthen the country’s financial sector.

• The increased demand for the kwanza will lead to a stronger Angolan economy.
• Companies operating in Angola will also benefit from using local currency, as it reduces their reliance on foreign exchange rates.

Enhancing Financial Inclusion through Mobile Money Transfer

The Central Bank of Angola has launched a mobile money transfer service using cell phones, aimed at reducing congestion in commercial banks and ATMs across the country. This new service allows individuals to send and receive money using their mobile devices.

• The mobile money transfer service will make it easier for people to access financial services.
• It will also reduce the reliance on cash transactions and minimize the risk of theft or loss.

Key Points

• A new law governing payments has been introduced to modernize the financial system and enhance transparency.
• Banks operating in Angola must adapt their systems to comply with international standards.
• Electronic funds transfer between banks is now the most common and reliable method of payment in Angola.
• Stricter regulations on foreign exchange transactions have been implemented, requiring companies to use local currency (kwanza) for all payments.
• The Central Bank of Angola has launched a mobile money transfer service using cell phones.

Implications

The introduction of these measures is expected to improve compliance in the banking sector and enhance economic growth. However, it may also lead to increased costs and complexity for companies operating in Angola.

• Companies will need to adapt their systems and processes to comply with the new regulations.
• They may also need to invest in new technology and training to ensure they can take advantage of the opportunities presented by these changes.