Angola Takes Steps to Improve Financial Crime Compliance
In a bid to strengthen its financial system, Angola has been making significant strides in anti-money laundering and combating the financing of terrorism (AML/CFT) compliance. Following a visit by the Financial Action Task Force (FATF) in early 2016, the country was recognized for its progress in implementing a robust legal and regulatory framework.
A Turning Point for Angola
The FATF’s assessment marked a turning point for Angola, as it demonstrated its commitment to international standards and excluded it from the list of countries considered high-risk. However, this achievement is not without challenges.
The Phenomenon of De-Risking
De-risking refers to the decision by correspondent banks to terminate relationships with respondent banks due to perceived money laundering or terrorist financing risks. This trend has been exacerbated by increasing fines imposed on Western banks by regulators, leading many to reassess their risk exposure and withdraw from high-risk jurisdictions.
Affected Regions
- Africa
- Asia
- Europe
- Latin America
- The Caribbean
Angola has not been immune to this trend, with its international partners scaling back USD-denominated bank correspondence. This has led to dollar-transaction constraints, further highlighting the need for effective AML/CFT compliance measures.
Mitigating Risks
To mitigate these risks, Angolan supervisors and financial system actors are working together to improve processes and procedures in line with international best practices. The public recognition by the FATF of Angola’s progress is a positive step forward, but there is still much work to be done.
The Role of ABANC
In response to these challenges, the Angolan Banking Association (ABANC) has established a Task Force dedicated to addressing Compliance & Anti-Money Laundering issues. This team of experts will focus on implementing measures to improve the effective compliance level and ensure that Angola remains committed to international standards for AML/CFT.
A New Era for Financial Crime Compliance
The establishment of this Task Force marks an important milestone in Angola’s journey towards improved financial crime compliance, and it is likely that 2016 will be remembered as a significant year in the country’s efforts to strengthen its financial system.