Angola Moves to Come into Compliance with CFT Regulations

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Angola has made significant progress in adopting a legal and regulatory framework for preventing and combating money laundering and terrorist financing. As a result, the Financial Action Task Force (FATF) has recognized the country’s commitment to compliance with international standards.

The Challenge of De-Risking

However, Angolan banks are facing a major challenge due to “de-risking”, a phenomenon where correspondent banks in Western countries are re-evaluating their relationships with respondent banks in high-risk jurisdictions. This has led to a significant reduction in bank correspondence, particularly in USD and EUR transactions.

Consequences for African Countries

This phenomenon has had severe consequences for African, Asian, European, Latin American, and Caribbean countries. Angola has been severely affected by this phenomenon, with some international partners terminating their US dollar-denominated bank correspondence. This has exacerbated transaction constraints and poses a major challenge to the country’s financial system.

Improving Compliance

To mitigate these risks, Angolan supervisors and financial actors are working together to improve processes and procedures in line with international best practices. The public recognition of Angola’s progress by the FATF has improved the country’s image, but there is still much work to be done.

History of AML/CFT Efforts

In 2016, Angola implemented its action plan for anti-money laundering and combating the financing of terrorism (AML/CFT) with the support of the FATF. However, pressing challenges remain, including improving effective compliance levels.

The Angolan Banking Association’s Task Force

To address this goal, the Angolan Banking Association (ABANC) established a Task Force in Q3 2016 to focus on Compliance & Anti-Money Laundering issues. The establishment of this Task Force marks an important step forward in Angola’s efforts to strengthen its AML/CFT regulations and ensure that its financial system is transparent and secure.

Next Steps

While progress has been made, there is still much work to be done to improve compliance levels. Angolan supervisors and financial actors must continue to work together to implement effective measures to prevent money laundering and terrorist financing. By doing so, Angola can continue to demonstrate its commitment to international standards and ensure the stability and security of its financial system.