Financial Crime World

Angola’s Financial Institutions Face Risk Management Challenges, Regulator Warns

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Angola’s central bank, the Bank of Angola (BNA), has issued a statement warning that the country’s financial institutions are facing significant risks of money laundering and terrorist financing.

High-Risk Banking Institutions

  • Commercial banks in particular are deemed to be at medium risk for terrorist financing, with threats and vulnerabilities equally weighted.
  • Non-bank institutions present a medium-high level of risk due to high threats and vulnerabilities.

Low-Risk Mobile Payment Service Providers

  • Mobile payment service providers under BNA supervision are considered low-risk.

Medium-High Risk Remittance Service Providers

  • Remittance service providers face a medium to high level of risk due to their vulnerability to threats.

Immediate Action Required

The regulator emphasized that supervised financial institutions must take immediate action to define and implement necessary measures to mitigate these risks, including:

  • Increasing employee awareness about money laundering indicators
  • Providing regular updates on exposure to risk
  • Establishing clear internal processes for identifying and reporting suspicious activities

Prevention Tools and Risk Assessments

Financial institutions are also required to:

  • Invest in prevention tools that can monitor customers and transactions proportionally to the risk of money laundering
  • Calibrate risk matrices to define customer risk profiles
  • Conduct internal risk assessments to become aware of their exposure to risk

Sector-Wide Risk Assessment Results

The results of a sector-wide risk assessment were presented last week in Luanda, attended by authorities with supervisory and oversight responsibilities, as well as financial institutions and law enforcement agencies. The findings highlight the need for increased vigilance and cooperation among all parties involved in Angola’s financial system to combat money laundering and terrorist financing.

Overall, it is clear that Angolan financial institutions must take immediate action to address these risks and ensure the integrity of the country’s financial system.