Angola’s Regulatory Framework on Virtual Assets: A Game-Changer for Anti-Money Laundering Efforts

As the digital economy continues to evolve, regulators around the world are scrambling to keep pace with the rapid growth of virtual assets. In Angola, a recent law has sparked controversy over the representation of value that may be traded or transferred by digital means and used for payment or investment purposes.

Risk Assessment and Regulation

Subject entities in Angola are required to identify and assess the risks associated with products or operations that ease anonymity, as well as those linked to the development of new technologies. The competent authorities must approve regulations stipulating that anti-money laundering requirements apply to virtual asset providers, which will be subject to authorization or registration and supervision.

Non-Fungible Tokens (NFTs)

Non-fungible tokens (NFTs) are not foreseen in Law 5/20, leaving many unanswered questions about their regulatory status in Angola. This lack of clarity can create uncertainty for businesses operating in the NFT space and hinder the growth of this innovative sector.

Compliance Programs

Subject entities must implement a program for the prevention and repression of money laundering, terrorism financing, proliferation of weapons of mass destruction, and other criminal offenses. The program must include measures to:

Identify and verify the identity of clients
Maintain accurate records
Report suspicious transactions

While there are no mechanisms in place for facilitating information sharing between financial institutions and businesses subject to anti-money laundering controls, subject entities are obligated to promptly provide information requested by the UIF, supervisory authorities, and judicial authorities.

Beneficial Ownership and Control

There is currently no Central Beneficiary Register in Angola, leaving a gap in maintaining accurate information about the beneficial ownership and control of legal entities. This lack of transparency can hinder financial institutions’ ability to conduct effective anti-money laundering customer due diligence responsibilities and assist government authorities in their efforts to combat financial crime.

Payment Orders for Funds Transfer

It is unclear whether it is a requirement that accurate information about originators and beneficiaries be included in payment orders for funds transfers, or if such information should also be included in payment instructions to other financial institutions. Clarification on this issue is essential to ensure that anti-money laundering measures are effective.

Conclusion

As the regulatory landscape continues to evolve, Angola’s approach to virtual assets will likely have far-reaching implications for the country’s efforts to combat money laundering and other financial crimes. It is essential for businesses operating in the virtual asset space to stay informed about the latest developments and comply with regulations to prevent financial crime.