Title: Angolan Parliament Approves New Law to Bolster AML Regulations and Target Offshore Financial Institutions
Background
At the end of 2019, Angola’s Parliament passed a new legislative update, Law on the Prevention and Combat of Money Laundering, Financing of Terrorism, and the Prohibition of the Proliferation of Weapons of Mass Destruction. This law replaced the previous regulation 34/11 from December 12, 2010. drafted with support from the International Monetary Fund (IMF) and the Financial Action Task Force (FATF) recommendations.
Objectives and Focus Areas
The primary objectives of the new Angolan legislation are:
- Strengthening defenses against money laundering, terrorism financing, and the proliferation of weapons of mass destruction
- Restricting financial transactions linked to criminal organizations
- Addressing the issue of financial entities based in offshore jurisdictions
Key Provisions
The law targets the establishment of “shell banks,” which are:
- Responsible for more than 50% of capital movements among terrorist organizations (US and European criminal investigations)
- The primary focus of the new legislation
Commercial banks in Angola are now obligated to report any capital transactions that total one thousand dollars or more.
Targeting Offshore Financial Institutions
The Angolan Parliament’s efforts to combat financial crimes include addressing transactions from offshore financial institutions that could potentially support illicit activities:
Modernizing Financial Regulations
By replacing the outdated financial regulations, Angola is:
- Making a significant stride in modernizing its financial regulations
- Addressing global challenges related to money laundering and terrorism financing