Financial Crime Trends in Angola Exposed: A Look at the Dos Santos Network’s Global Reach

Introduction

Angola, ranked 165 out of 180 in Transparency International’s latest Corruption Perceptions Index, has long been associated with a network of corruption and hidden wealth. The recent revelations about Isabel dos Santos’ empire, spanning 41 countries, have shed light on the complex web of financial crime that has gone undetected for years.

A Paradox: Strong Anti-Money Laundering Institutions are More Likely to Host Illicit Wealth

Despite operating mainly in countries with robust anti-money laundering (AML) institutions, the dos Santos network managed to fly under the radar. Experts point to a paradox: jurisdictions with strong AML policies are actually more likely to host illicit wealth.

Research Findings

Using data from the International Consortium of Investigative Journalists (ICIJ), researchers investigated whether certain types of jurisdictions were more likely to be part of the dos Santos network. The study combined effectiveness data from the Financial Action Task Force’s (FATF) mutual evaluation reviews with the location of companies in the dos Santos network. The results showed that:

• Jurisdictions scoring high on FATF effectiveness were more, not less, likely to host companies linked to dos Santos.
• A one-standard-deviation improvement in a country’s effectiveness score was associated with a 16 percentage point increase in the chance it hosted a dos Santos-linked company.

Implications for Policymakers

The study’s results have significant implications for policymakers. They suggest that relatively rich and large economies may not be as effective at policing their financial systems as indicators suggest. Recent scandals like the Panama Papers, the Danske Bank scandal, and now the dos Santos scheme are making it increasingly difficult to claim that everything is working as it should.

Addressing the Paradox of Money Laundering Institutions

The study highlights the need for policymakers to rethink their approach to AML and address the paradox of money laundering institutions. By doing so, they can work towards creating a more transparent and accountable financial system that is less attractive to illicit wealth.

Conclusion

The dos Santos network’s global reach exposes the complex web of financial crime that has gone undetected for years. The study’s findings highlight the need for policymakers to rethink their approach to AML and address the paradox of money laundering institutions. By doing so, they can work towards creating a more transparent and accountable financial system that is less attractive to illicit wealth.