Financial Crime World

Angola’s KYC Process and AML Regulations: Navigating Identity Verification in Diamond-Rich Angola

Angola, a diamond-rich country in southern Africa, places great importance on adhering to Know Your Customer (KYC) processes and anti-money laundering (AML) regulations. Financial institutions are required to follow these procedures for onboarding both domestic and international customers.

KYC Requirements for Domestic and International Customers

Domestic Persons

To open an account, domestic persons must provide the following document with the following information:

  • Full name
  • Signature
  • Address
  • Work placement
  • Date of birth
  • Nationality
  • Tax identification number

International Persons

International persons must also provide the same documentation as domestic persons. Additionally, they are required to provide a signature andprofession or source of funds.

Corporations

Corporations require the following documents for account opening:

  • Deeds of incorporation or articles of association
  • A valid license or certification
  • Headquarters address
  • Tax identification number
  • Shareholder identification
  • Board of directors identification

Angola’s Electronic Signature Laws

Regarding electronic signature laws, Angola currently lacks clear legislation on the matter. However, the government is working on data protection legislation.

Anti-Money Laundering (AML) Regulations

Angola’s AML regime was initiated in 2011 with the issuance of Law no. 34/11. The following regulatory bodies oversee AML controls:

  • Banco Nacional de Angola in the banking sector
  • Directoria Nacional de Investigacao e Inspeccao das Atividades Economicas, which governs other financial services

Retroactive Verification

A subject of ongoing discussions, regulations regarding the requirement to retroactively verify customer identities before the new AML regime were introduced are expected soon.

Mutual Evaluation by the FATF

In 2012, Angola underwent mutual evaluation by the Financial Action Task Force (FATF). There are minimum transaction thresholds, with one-off transactions under USD15,000 exempted.

Enhanced Due Diligence

High-risk customers or transactions necessitate enhanced due diligence. Financial institutions must identify and verify the identity of beneficial owners when more than 20% of the voting rights are held.

Additional Considerations

Politically Exposed Persons (PEPs)

Politically exposed persons (PEPs) demand additional due diligence and approval from senior management before establishing any business relationships.

Correspondent Banking Relationships

Correspondent banking relationships require similar precautions, taking into consideration the foreign bank’s jurisdiction and internal procedures.

Non-Face-to-Face Transactions and Relationships

Additional due diligence is required for non-face-to-face transactions or relationships, which favor anonymity.

Reporting Suspicious Activity

Suspicious activity reports (SARs) must be submitted to Anco Nacional de Angola and Direcção Nacional de Investigação e Inspecção das Actividades Económicas do Comando Geral da Policia Nacional.

Penalties for AML Regulation Breaches

Breaches of AML regulations result in penalties, including fines for both legal and natural persons.

Reporting AML Systems and Controls

External auditors are not required to submit reports on AML systems and controls, and financial statements do not include an AML system audit.

For more information on Angola’s data protection laws and personal data, visit the official website: http://www.policiaeconomica.gv.ao/