Financial Crime World

ANGOLA TIGHTENS BANKING REGULATIONS TO COMBAT FINANCIAL CRIME

The Angolan Central Bank (BNA) has introduced new regulations aimed at preventing and combating money laundering, terrorist financing, and the proliferation of weapons of mass destruction in the country’s financial sector. These measures are designed to strengthen the risk management procedures for banks and ensure a safe and secure financial system for citizens.

Key Requirements of the New Regulations

The BNA has adopted Order 2/24, of 22 March 2024, which sets out a range of rules that banks must follow:

Regular Risk Assessments

  • Banks must conduct thorough risk assessments every 12 months (or 24 months in certain cases) to identify potential vulnerabilities in their systems.
  • This process will help banks to better understand the risks associated with specific clients or transactions and take proactive measures to mitigate them.

Suspicious Transactions

  • Banks must suspend any operation or freeze an account if it involves a person or entity on a blocked, sanctions, or restricted list.
  • Additionally, banks are prohibited from opening anonymous accounts or accounts under fictitious names, which will help to prevent money laundering activities.

Client Records and Information

  • Banks are required to maintain detailed records of all operations (or related operations) equal to or higher than USD 15,000.
  • Banks must identify the ultimate beneficiary owner (UBO) of corporate clients and obtain additional information about their clients, including:
    • Source of funds and wealth
    • Proof that the funds were obtained in a legitimate manner
    • Client’s reputation and background
    • Information on client’s family relatives and business partners

Risk Management Procedures

  • The regulations emphasize the importance of risk management procedures for clients or operations involving high-risk jurisdictions, private banking clients, and politically exposed persons (PEPs).
  • Banks are required to report any operation involving a crime of money laundering, terrorist financing, or proliferation of weapons of mass destruction or any other crime to the BNA’s Financial Information Unit immediately.

Compliance Officer

  • Each bank must have a Compliance Officer responsible for ensuring that the institution is in compliance with the new regulations.
  • In case of termination of a client relationship, banks are required to stop any operation or transfer related to that client and close the account within 30 days.

Annual Reports

  • Banks are mandated to submit an annual report to the BNA on their policies and procedures to prevent and manage risks associated with money laundering, terrorist financing, and proliferation of weapons of mass destruction.

These new regulations demonstrate the Angolan government’s commitment to combating financial crime and ensuring a safe and secure financial system for its citizens.