Financial Crime World

Banking Regulations Compliance: A Priority in Angola’s Financial Sector

Angola is committed to promoting economic growth and stability, and ensuring compliance with banking regulations has become a top priority for financial institutions operating in the country. The National Bank of Angola (BNA), the regulatory authority, is working closely with banks to ensure they adhere to strict guidelines aimed at promoting a healthy and stable banking system.

Legislation in the Banking Industry

According to experts, the majority of legislation in the banking industry in Angola is issued by:

  • Parliament
  • Executive Power
  • BNA itself

The five largest banks in the country, including: + Banco Angolano de Investimentos SA + Banco Fomento de Angola, SA + Banco BIC + Banco Caixa Geral Angola SA + Standard Bank Angola, SA

are subject to a range of regulations aimed at ensuring their stability and integrity.

The Financial Institutions Law (FIL)

At the heart of these regulations is Law No. 12/15 of June 2015, also known as the Financial Institutions Law (FIL). This legislation sets out the rules governing the incorporation and operation of financial institutions in Angola, including commercial banks. Under the FIL, a financial institution is defined as:

  • Any public or private company whose activities are conducted as a banking or non-banking financial institution

Types of Financial Institutions

There are two main types of financial institutions subject to regulation in Angola:

Banking Financial Institutions

  • Include banks and microfinance institutions
  • Required to adopt the form of joint-stock companies
  • Must maintain a minimum share capital of 7.5 billion kwanzas represented by nominative shares

Non-Banking Financial Institutions

Regulation of Overseas Banking Institutions

Branches of overseas banking institutions operating in Angola must also:

  • Obtain authorisation from the BNA
  • Ensure that two-thirds of their personnel are national citizens

This strict regulatory regime is designed to promote transparency, accountability, and stability in the Angolan financial sector. Banks are working closely with the BNA to ensure compliance.

Conclusion

As Angola continues to grow and develop its economy, ensuring compliance with banking regulations will be crucial for maintaining a stable and healthy financial system. By working together with the BNA and other regulatory bodies, Angolan banks can help to promote economic growth and stability, while also protecting the interests of their customers and stakeholders.