Angolan Elites’ Secret Network: €324 Million Laundered Through Portuguese Banks, Report Reveals

A complex web of private transactions and shell companies was used by a network of high-ranking Angolan government officials and senior bank executives to launder hundreds of millions of dollars out of Angola, primarily through Portuguese banks, according to an investigation by the Organized Crime and Corruption Reporting Project (OCCRP).

Key Findings

• At least €324 million was funneled out of Angola through this secretive financial network.
• Most of the funds originated from Angola’s oil-rich region.
• €257 million was discovered to be held by European companies closely linked to these officials.
• Portuguese regulators documented the network’s activities in two audit reports from 2016.

Breach of Portuguese Banking Regulations

The reports detailed how these officials established and used a network of Portuguese banks, bypassing numerous Portuguese banking regulations. The implicated banks – Banco Africano de Investimentos (BAI), Banco de Negocios Internacional (BNI), and Banco Privado Atlantico (BPA) – allegedly failed to implement effective anti-money laundering and terrorist financing controls and conducted little to no due diligence on high-risk clients.

Corruption Implications for Angola and Portugal

The ongoing scheme has had devastating implications for Angola, where nearly half of the population lives in poverty. Some of the missing funds could have been used for infrastructure, education, or healthcare projects in the impoverished country. Furthermore, this secretive financial network has corrupted Portugal’s reputation and continues to do so.

Key Players

• Former Angolan President José Eduardo dos Santos, who left office in 2017 amid allegations of corruption
• Former Vice President Manuel Vicente
• Business partner Leopoldino Fragoso do Nascimento, better known as Dino

Companies and Foreign Branches Involved

The network involved more than a dozen influential Angolan officials and their family members in the system. Companies allegedly linked to former President dos Santos’ daughter, Isabel, received millions through this network. Much of their wealth was tied to Sonangol, Angola’s state oil company and the primary source of at least 75 percent of the country’s public revenues. By establishing foreign branches in Portugal and Cape Verde, the Angolan elites expanded the pipeline for transferring funds through a private banking network, bypassing regulatory scrutiny.

Concerns About EU and Portugal’s Response

The details of this complex financial network were uncovered through the two audit reports from the Bank of Portugal and extensive research into internal correspondence, confidential investigator documents, and public sources, including corporate data. The extensive investigation raises concerns about the determination and willingness of Portugal and the EU to prevent illicit financial flows and corruption involving Angolan elites. The European Central Bank did not return requests for comment.