Digital Assets’ Money Laundering Risks

The Angolan government has introduced regulations to combat money laundering and terrorist financing, but the laws do not specifically mention digital assets. However, subject entities are required to identify and assess risks associated with products or operations that ease anonymity.

Virtual Asset Providers Under Supervision

While there is no specific regulation for virtual asset providers, competent authorities may approve rules requiring anti-money laundering (AML) requirements for these providers, which would be subject to authorization or registration and supervision.

NFTs Not Regulated

Non-fungible tokens (NFTs) are not mentioned in Angolan law 5/20, leaving their legal status unclear. As a result, it is uncertain whether NFTs are considered a specific subject activity or if they fall under existing AML regulations.

Compliance Programs Required

Financial institutions and designated businesses must implement compliance programs to prevent money laundering, terrorism financing, and proliferation of weapons of mass destruction. These programs should include:

Compliance control systems
Verification processes
Independent control structure
Effective risk management model

Recordkeeping and Reporting Large Currency Transactions

Subject entities are required to keep records of large currency transactions (above 10,000 USD or equivalent) for at least five years. They must also report these transactions within 15 days.

Customer Due Diligence Requirements

Financial institutions and designated businesses must conduct customer due diligence, including:

Identifying clients’ ultimate beneficiaries
Verifying the origin or destination of funds used in a business relationship or occasional transaction
Obtaining information on clients’ representatives and their powers to act on behalf

Shell Banks Prohibited

Banks and payment service providers are prohibited from establishing correspondent relationships with shell banks, which have no physical presence in the countries where they are licensed and no effective supervision.

Suspicious Activity Reporting Criteria

Subject entities must report all activities suspected of being connected with money laundering, terrorism financing, proliferation of weapons of mass destruction, or any other criminal offense.

While there is no specific mechanism for information sharing between financial institutions and businesses subject to AML controls, subject entities are obligated to provide requested information promptly to the UIF, supervisory authorities, and judicial authorities. However, it appears that there is currently no public-private information exchange facilitating information sharing.

Beneficial Ownership and Control Information

There is no Central Beneficiary Register in Angola, making it difficult for government authorities and financial institutions to access accurate information about beneficial ownership and control of legal entities. This lack of transparency hinders efforts to combat money laundering and terrorist financing.