Angola Takes Steps to Combat Money Laundering and Terrorism Financing

Progress in Implementing Anti-Money Laundering Regulations

In a significant development, Angola has made notable progress in implementing regulations against money laundering and combating the financing of terrorism. The country’s commitment to compliance with international standards was recognized by the Financial Action Task Force (FATF) earlier this year.

Assessment Visit by FATF Officials

Following an assessment visit by FATF officials in 2016, Angola demonstrated considerable progress in adopting a robust legal and regulatory framework aimed at preventing and combating money laundering and terrorist financing. As a result, the country has been excluded from the list of jurisdictions deemed to pose a risk to the global financial system, thereby ending its permanent monitoring by the FATF.

However, banks operating in Angola continue to face challenges related to de-risking, a phenomenon where correspondent banks reassess their relationships with respondent banks in high-risk jurisdictions. This trend has resulted in significant fines for Western banks, forcing them to re-evaluate their relationships and ultimately leading to a reduction in bank correspondence. As a consequence, countries like Angola have been severely affected, experiencing constraints on dollar transactions.

Mitigating Risks

To mitigate these risks, Angolan authorities are taking steps to improve the perception of the country’s financial system. Supervisors and financial actors are working together to implement processes and procedures that align with international best practices. The public recognition by FATF of Angola’s progress has helped to enhance the image of the banking system, and efforts continue to be made towards continuous improvement.

Establishment of Task Force

A key milestone was achieved in 2016 when the Angolan Bank Association (ABANC) established a Task Force focused on Compliance and Anti-Money Laundering issues. The team of five experts aims to address pressing challenges and improve the country’s effective compliance level with anti-money laundering regulations.

Continued Efforts

As Angola moves forward, it is clear that continued efforts are necessary to ensure that the country remains compliant with international standards and maintains its commitment to combating money laundering and terrorist financing.