Financial Crime World

Here is the article in markdown format:

ANGOLA’S CENTRAL BANK TIGHTENS RULES ON INTERNAL CONTROLS FOR FINANCIAL CRIMES

Luanda - The Angolan Central Bank (BNA) has adopted new regulations aimed at preventing and combating financial crimes in the country’s banking sector. According to Order 2/24, issued on March 22, 2024, banks are now required to implement robust internal controls to prevent money laundering, terrorist financing, and proliferation of weapons of mass destruction.

Banks Must Conduct Risk Assessments

Under the new regulations, banks must conduct a risk assessment process every 12 months (or 24 months in certain cases) to identify potential vulnerabilities and take steps to mitigate them. This will help banks to better understand their exposure to financial crimes and develop targeted strategies to prevent them.

  • The risk assessment process should include:
    • Identifying high-risk clients and transactions
    • Assessing the bank’s exposure to money laundering, terrorist financing, and proliferation of weapons of mass destruction
    • Developing strategies to mitigate risks
    • Implementing controls to prevent and detect financial crimes

Suspicious Transactions Will Be Prohibited

Banks are now required to suspend any operation or freeze an account if it is deemed suspicious, or if it involves a person or entity that is part of a blocked, sanctions, or restricted list. This will help to prevent the use of Angolan banks for illicit financial activities.

  • Banks must have procedures in place to identify and report suspicious transactions
  • Suspicious transactions should be reported to the BNA’s Financial Information Unit immediately

Anonymous Accounts Will Be Banned

The new regulations also prohibit banks from opening anonymous accounts or accounts under fictitious names. This will make it more difficult for individuals and entities to launder money or engage in other financial crimes using Angolan bank accounts.

  • Banks must verify the identity of all account holders
  • Account holders must provide proof of their identity and address

Banks Must Maintain Records of Large Transactions

Banks are now required to keep and preserve information on any operation (or related operations) equal to or higher than $15,000. This will help regulators to track large transactions and identify potential money laundering activities.

  • Banks must maintain records of all transactions for a minimum of five years
  • Records should include:
    • Transaction details
    • Client information
    • Proof of source of funds

Client Identity Information Will Be Verified

In addition to the identity information of clients, banks must also obtain or assess additional elements such as the source of client funds and wealth, proof that the funds were obtained in a legitimate manner, client reputation and background, and information on client family relatives and business partners. This will help banks to better understand their customers and identify potential risks.

  • Banks must verify the identity of all clients
  • Clients must provide proof of their identity and address

Risk Management Procedures Will Be Strengthened

The new regulations require banks to reinforce risk management procedures for clients/operations involving high-risk jurisdictions, private banking clients, and politically exposed persons (PEPs). This will help banks to better manage these types of relationships and reduce the risk of financial crimes.

  • Banks must have procedures in place to identify and report suspicious transactions
  • Risk management procedures should include:
    • Identifying high-risk clients and transactions
    • Assessing the bank’s exposure to money laundering, terrorist financing, and proliferation of weapons of mass destruction
    • Developing strategies to mitigate risks

Banks Must Report Suspicious Transactions to Regulators

Banks are now required to immediately report to BNA’s Financial Information Unit any operation involving a crime of money laundering, terrorist financing, or proliferation of weapons of mass destruction or any other crime. This will help regulators to identify and investigate suspicious transactions.

  • Banks must have procedures in place to identify and report suspicious transactions
  • Suspicious transactions should be reported to the BNA’s Financial Information Unit immediately

Banks Must Create Internal Channels for Reporting Crimes

Each bank must create internal channels for receiving reports and complaints regarding the above crimes. This will help banks to better manage tips and complaints from customers and employees.

  • Banks must have procedures in place to receive and investigate reports of financial crimes
  • Reports should be investigated promptly and thoroughly