Financial Crime World

Compliance in Banking Industry Remains Key Focus for Regulators in Angola

The banking industry in Angola is heavily regulated by a complex web of laws and regulations, with the National Bank of Angola (BNA) at the forefront of ensuring compliance.

Regulatory Framework

According to experts, the country’s five largest banks in terms of net assets are subject to stringent rules and guidelines. The Financial Institutions Law (FIL), enacted in 2015, sets forth the rules for incorporation and operation of financial institutions, including commercial banks.

  • A financial institution is defined as a public or private company that conducts banking or non-banking activities.
  • There are two types of highly regulated financial institutions: banking financial institutions and non-banking financial institutions.

Banking Financial Institutions

Banking financial institutions in Angola provide a range of services to both corporate and individual clients, including: + Deposits + Investment solutions + Lease of equipment + Guarantees

These institutions must adopt the form of joint-stock companies with a minimum share capital of 7.5 billion kwanzas represented by nominative shares.

Overseas Banking Institutions

Branches of overseas banking institutions operating in Angola require authorization from the BNA and must ensure that at least two-thirds of their personnel are national citizens.

Regulatory Regime

The regulatory regime is designed to ensure the stability and integrity of the financial system, and non-compliance can result in severe penalties. The Angolan government has taken steps to strengthen oversight and enforcement of banking regulations, with the BNA playing a key role in supervising and monitoring banking activities.

  • The regulator issues orders, instructions, and directives to guide banking institutions on compliance matters.

Challenges and Commitment to Compliance

In recent years, Angola’s banking industry has faced several challenges, including the impact of the COVID-19 pandemic and economic uncertainty. However, regulators have remained committed to ensuring that banks operate within the framework of strict regulations, thereby maintaining stability in the financial system.

By focusing on compliance, the BNA is able to ensure a stable and secure banking environment for both domestic and international stakeholders.