ANGOLA TIGHTENS FINANCIAL REGULATIONS TO ENHANCE TRANSPARENCY AND CORPORATE GOVERNANCE
The Angolan government has issued a series of regulatory measures aimed at strengthening the country’s financial institutions and promoting transparency and corporate governance.
Strengthening Financial Institutions
The new regulations, known as Avisos, require financial institutions to:
- Establish codes of conduct for themselves and their employees
- Set up policies and processes for identifying and mitigating conflicts of interest
- Ensure that internal control systems are in place
These measures demonstrate the government’s commitment to strengthening the country’s financial institutions and promoting a more stable and sustainable economy.
New Rules for Financial Institutions
In addition to the Avisos, the National Bank has also established new rules governing:
- Internal controls: Financial institutions must establish robust internal control systems.
- Risk management systems: Effective risk management procedures must be implemented.
- Consolidated prudential supervision: The regulations require financial institutions to ensure that their risk management systems are integrated with their internal audit functions.
Enhanced Transparency and Corporate Governance
The Avisos also introduce requirements for:
- Independent directors: Financial institutions must appoint independent directors to their boards.
- Whistle-blower mechanisms: Employees must be able to report any suspicious activities or irregularities anonymously.
These measures are part of a broader effort by the Angolan government to modernize and strengthen the country’s financial sector.
Outlook
Hugo van der Molen, partner at Clifford Chance, notes that “The Avisos are just one part of a broader package of reforms aimed at strengthening Angola’s financial sector. We expect to see continued efforts by the government to promote transparency and corporate governance in the coming years.”
CONTACTS
- Pieter van Welzen +31 20 711 9154 pieter.vanwelzen@cliffordchance.com
- Hugo van der Molen +31 20 711 9520 hugo.vandermolen@cliffordchance.com