Financial Crime World

Angola’s Capital Markets Commission Approves New AML Regulation: Entity Obligations and Compliance Officer Duties

The Capital Markets Commission (CMC) of Angola’s Board of Directors has recently endorsed Regulation No. 4/2016, a new regulatory framework designed to help financial institutions and other related entities adhere to the obligations outlined in Law No. 34/2011. Also known as the Money Laundering and Anti-Terrorism Law.

Scope of Regulation No. 4/16

Beginning August 1, 2016, the following entities will fall under the scope of Regulation No. 4/16:

  1. Financial institutions under the CMC’s purview
  2. Managing bodies of regulated markets
  3. Investment entities active in securities

Requirements under Regulation No. 4/16

Equipped with specific mechanisms aimed at thwarting money laundering and terrorist financing activities, the new regulation lays down numerous requirements:

  1. KYC (Know Your Customer) duties during transactions conducted without the client’s physical presence: Entities must conduct proper due diligence on clients, even during transactions without their physical presence.

  2. Implementing a risk assessment-based internal control system: Entities must establish, document, and maintain an internal control system to manage the risks of money laundering and terrorist financing.

  3. Reporting suspicious transactions: Entities are required to report any suspicious transactions to the Financial Information Unit (FIU).

  4. Compliance Officer and Obligations: Entities must designate a Compliance Officer who is responsible for:

    • Governing and monitoring the implementation of money laundering countering measures and policies
    • Regularly assessing the effectiveness of the anti-money laundering and counter-terrorist financing (AML/CFT) system
    • Ensuring all employees receive required training
    • Providing periodic reports to the CMC on the AML/CFT system and any related issues

Consequences of Non-compliance

Entities subjected to Regulation No. 4/16 risk penalties for contravening its provisions as described in Law No. 34/2011 and, subsequently, Law No. 03/14.

Note that this analysis is purely informative in nature and does not constitute legal advice. Any company considering a potential transaction must consult with legal counsel for specific advice regarding their particular circumstances.

Written by Tauil & Chequer Advogados