Angola Takes Significant Steps to Prevent Financial Crime
Progress in Implementing Anti-Money Laundering and Combating Terrorism Financing (AML/CFT) Standards
Angola has made substantial progress in implementing AML/CFT standards, according to a recent assessment by the Financial Action Task Force (FATF). This achievement has earned the country recognition as a jurisdiction committed to preventing and combating money laundering and terrorist financing.
The Road to Success: FATF On-Site Visit
In early 2016, the FATF conducted an on-site visit to evaluate Angola’s implementation of its recommendations. As a result, the country was removed from the list of jurisdictions considered high-risk by the global financial system. This breakthrough is seen as a significant achievement for Angola, which has long been working to improve its AML/CFT framework.
The New Challenge: De-Risking
However, regulatory bodies in Angola are now facing a new challenge: de-risking. The phenomenon refers to the practice of correspondent banks assessing and reducing their relationships with respondent banks in high-risk jurisdictions. This trend has emerged due to increasing fines imposed by regulators on Western banks for failing to comply with AML/CFT regulations.
Impact of De-Risking on Angola
Angola, like many other African countries, has been severely impacted by de-risking. The country’s international partners have reduced or severed dollar-denominated bank correspondence, exacerbating transaction constraints and limiting access to the global financial system.
Mitigating Risks: A Closer Look at Regulatory Efforts
To mitigate these risks, regulatory bodies in Angola are working closely with supervisors and financial system actors to improve processes and procedures. The establishment of a technical compliance framework has been recognized by the FATF as a significant step towards enhancing AML/CFT standards.
- Technical Compliance Framework: This framework is designed to ensure that banks and other financial institutions have robust systems in place to detect and prevent money laundering and terrorist financing.
- Task Force on Compliance & Anti Money Laundering: In 2016, Angolan banking regulator ABANC created a Task Force dedicated to Compliance & Anti Money Laundering issues. This move is seen as a key initiative to address pressing challenges and improve effective compliance levels.
The Future of AML/CFT in Angola
Angola’s progress in this area has significant implications for its economic development and international reputation. As the country continues to work towards strengthening its AML/CFT framework, regulatory bodies will be closely monitoring developments to ensure that the country remains committed to preventing and combating financial crime.
By staying vigilant and proactive, Angola can continue to make strides in implementing effective AML/CFT measures, ultimately enhancing its position as a jurisdiction committed to preventing and combating financial crime.