Financial Crime World

Combating Money Laundering in Angola: Key Findings and Recommendations

Executive Summary

Angola is vulnerable to money laundering (ML) threats, with significant risks present in its financial system, real estate sector, and cross-border trade. Despite improvements in its Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) legal framework, Angola’s effectiveness in combating ML and terrorist financing (TF) is hindered by several challenges.

Key Findings

  • Money Laundering Threats: Angola is exposed to ML threats from within and outside the country through its financial system, real estate sector, and cross-border trade.
  • Challenges in Combating ML: The country’s sophisticated financial system coexists with significant use of cash and a presence of informal economy, making it challenging to combat ML.
  • Limited Effectiveness: Despite improvements in its AML/CFT legal framework, Angola’s effectiveness in combating ML and TF is hindered by lack of an effective case management system, statistics, and prioritization mechanisms.
  • Low Extent of Investigations: The country faces significant domestic ML threats, with only a low extent of investigated and prosecuted ML cases consistent with the country’s risk profile.

Insufficient Measures

  • Alternative Measures: Angola has not implemented alternative measures in situations where a conviction cannot be achieved.
  • Parallel Financial Investigations: There is limited understanding and capacity to conduct parallel financial investigations to identify ML cases effectively.
  • Recoveries: The country’s recoveries are mainly attributed to the implementation of the Voluntary Surrender of Assets mechanism, and there are no tangible efforts by the authorities to pursue proceeds of other high-proceed generating offenses.

Non-Compliance with International Standards

  • Detection and Seizure of Non/Falsely Declared Bank Notes and Coins (BNIs): Angola does not adequately implement measures for the detection and seizure of non/falsely declared BNIs.
  • Financial Intelligence Unit: The Financial Information Unit (UIF) is responsible for receipt, request, analysis, and evaluation of reports and dissemination of financial intelligence.

Recommendations

  1. Improve Case Management Systems: Enhance effectiveness in combating ML and TF by improving case management systems, statistics, and prioritization mechanisms.
  2. Increase Understanding and Capacity: Increase understanding and capacity among law enforcement agencies to conduct parallel financial investigations to identify ML cases effectively.
  3. Implement Alternative Measures: Implement alternative measures in situations where a conviction cannot be achieved.
  4. Pursue Proceeds of High-Proceed Generating Offenses: Enhance efforts to pursue proceeds of high-proceed generating offenses beyond corruption-related offenses.
  5. Improve Recovery and Confiscation Procedures: Improve recovery and confiscation procedures, including the implementation of non-conviction-based confiscation mechanisms.
  6. Strengthen Measures for Detection and Seizure of BNIs: Strengthen measures for the detection and seizure of non/falsely declared BNIs.
  7. Enhance Collaboration: Enhance collaboration between relevant authorities to combat ML and TF.