Angola’s Battle Against Money Laundering: A Growing Concern

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In the fight against money laundering, Angola has taken steps to strengthen its regulations and ensure transparency in financial transactions. The country’s anti-money laundering (AML) framework is designed to prevent the misuse of virtual assets, such as digital representations of value that can be traded or transferred digitally.

Regulations for Virtual Assets Providers

While there are no specific regulations yet approved by competent authorities, subject entities are obliged to identify and assess risks associated with products or operations that facilitate anonymity or involve new technologies. This includes virtual assets providers, who may be required to obtain authorization or registration and undergo supervision.

NFTs: A Grey Area

Non-fungible tokens (NFTs) are not explicitly mentioned in Angola’s Law 5/20, leaving their status unclear. However, subject entities must implement a program for the prevention and repression of money laundering, terrorism financing, and proliferation of weapons of mass destruction.

Compliance Programmes

To prevent money laundering, subject entities must establish compliance programs that include:

Compliance control systems
Verification processes for legal entities and individuals
Identification of trusts and other legal arrangements
Monitoring of business relationships

Reporting Suspicious Activity

Financial institutions are required to report all suspicious activities connected with money laundering, terrorism financing, proliferation of weapons of mass destruction, or any other criminal offence.

Subject entities must provide information requested by the UIF, supervisory authorities, and judicial authorities. While there is no public-private information exchange mechanism in place, financial institutions can share information to assist in identifying and reporting suspicious activities.

Beneficial Ownership and Control

Angola does not have a Central Beneficiary Register, making it difficult for government authorities to access accurate information about the beneficial ownership and control of legal entities. This lack of transparency may hinder financial institutions’ ability to conduct effective anti-money laundering customer due diligence.

Payment Orders and Instructions

Accurate information about originators and beneficiaries must be included in payment orders for funds transfers. Similarly, this information should also be included in payment instructions to other financial institutions.

Conclusion

Angola’s efforts to combat money laundering are still evolving. While there is a growing awareness of the need for stricter regulations and transparency, more work needs to be done to ensure that virtual assets providers, NFTs, and beneficial ownership and control information are adequately addressed. As the country continues to strengthen its AML framework, it is crucial to establish clear guidelines and mechanisms for information sharing between financial institutions and government authorities.