Lack of Oversight at Portuguese Banks Catering to Angolan Clients

Introduction

The Bank of Portugal audit in 2015-2016 revealed several breaches and violations of anti-money laundering rules at Portuguese banks that cater to Angolan clients. Despite these findings, the bank’s parent company was allowed to continue operating.

Audit Findings

• Lack of Due Diligence: Over 60% of individual client accounts had significant information missing, such as the purpose of the business relationship or reason for transactions.
• Inadequate Customer Knowledge: Corporate accounts lacked basic knowledge of their customers, including ultimate beneficial owners.
• Inexperienced Compliance Officers: Compliance officers were junior staff with no experience in anti-money laundering and worked in an open area without adequate tools to identify suspicious relationships and transactions.

Non-Compliance with Anti-Money Laundering Rules

Several powerful Angolans who used the opaque financial network had breached or violated Portuguese and EU anti-money laundering legislation. However, none of them have been prosecuted.

Inaction by Regulatory Bodies

• European Central Bank: Despite being informed about the audit’s findings, no action was taken.
• European Banking Authority: Similar to the European Central Bank, no action was taken.
• Portuguese Government: The government showed little interest in examining the findings.

Experts’ Call for Action

Experts call for concrete measures to harmonize anti-money laundering standards across the EU and consider a dedicated body with powers to supervise and sanction member states for non-compliance.