Angola’s Financial Intelligence Unit: A Key Player in Combating Money Laundering and Terrorist Financing

Strengthening Angola’s Financial Sector Against Money Laundering and Terrorist Financing

In a significant move towards strengthening its financial sector, Angola has taken substantial steps to implement anti-money laundering and counter-terrorist financing measures. As a member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), a FATF-style regional body, Angola has committed to putting in place an effective AML/CFT regime that meets international standards.

The Role of Angola’s Financial Intelligence Unit

According to a Mutual Evaluation Report prepared by the World Bank as part of the Financial Sector Assessment Program (FSAP) of Angola, the country’s financial intelligence unit plays a crucial role in combating money laundering and terrorist financing. Established in 2011 under Decree 54/2011 issued by the central bank (BNA), the unit was granted powers and functions through Presidential Decree 35/11.

Areas for Improvement

However, the report highlights several areas of deficiencies in Angola’s AML/CFT framework, including:

• Lack of regulations and guidelines: The law requires further clarification to assist accountable institutions with its implementation.
• Inadequate customer due diligence requirements: Enhancements are needed to ensure that institutions conduct thorough risk assessments and implement effective measures to prevent money laundering and terrorist financing.
• Insufficient reporting obligations: Accountable institutions need to improve their reporting obligations to ensure timely and accurate information is provided to the financial intelligence unit.

Recommendations for Strengthening Angola’s AML/CFT Regime

The report makes several recommendations for short-term and medium-term measures that Angola should take to strengthen its AML/CFT regime, including:

• Establishing a clear regulatory framework: This will provide clarity on the laws and regulations governing anti-money laundering and counter-terrorist financing in Angola.
• Enhancing customer due diligence requirements: Institutions need to conduct thorough risk assessments and implement effective measures to prevent money laundering and terrorist financing.
• Improving reporting obligations: Accountable institutions need to improve their reporting obligations to ensure timely and accurate information is provided to the financial intelligence unit.

Conclusion

By taking concrete steps towards strengthening its financial intelligence unit and addressing the identified deficiencies, Angola demonstrates its commitment to combating money laundering and terrorist financing in line with international standards. This move is likely to have a positive impact on the country’s economic stability and reputation, as well as its relationships with international partners.