ANGOLA
Summary

Sanctions

None

FAFT AML Deficient

No longer on list

Higher Risk Areas

 

Non - Compliance with FATF 40 + 9 Recommendations

Not on EU White list equivalent jurisdictions

Corruption Index (Transparency International & W.G.I.)

World Governance Indicators (Average Score)

Failed States Index (Political Issues)(Average Score)

Medium Risk Areas

US Dept of State Money Laundering Assessment

Weakness in Government Legislation to combat Money Laundering

 

 

ANTI-MONEY LAUNDERING

 

FATF Status

Angola is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

 

Latest FATF Statement - 19 February 2016

The FATF welcomes Angola’s significant progress in improving its AML/CFT regime and notes that Angola has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in June 2010 and February 2013. Angola is therefore no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Angola will work with ESAAMLG as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

 

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Angola was undertaken by the Financial Action Task Force (FATF) in 2012. According to that Evaluation, Angola was deemed Compliant for 3 and Largely Compliant for 9 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 4 of the 6 Core Recommendations.

 

US Department of State Money Laundering assessment (INCSR)

Angola was deemed a Jurisdiction of Concern by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR).

Key Findings from the report are as follows: -

 

Perceived Risks:

Angola is not a regional financial center. It does not produce large quantities of narcotics but continues to be a transit point for drug trafficking, particularly for drugs from Brazil and other parts of South America destined for Europe. Increasingly, Angola is becoming a destination point as well, with a growing market for illicit drugs. Angola’s borders are porous and vulnerable to general smuggling and trafficking in small arms, diamonds, humans, fuel, and motor vehicles. Angola has a high rate of U.S. dollar cash flow, although the government has implemented new financial policies to decrease use of all currencies except the Angolan kwanza. According to the Angolan Central Bank approximately $17 billion has left the economy in the last five years alone, an amount significantly above foreign direct investment into the country. The origin of this money is unclear. Additional value is transferred out of the country through abusive trade mis-invoicing. Widespread corruption in government and commerce facilitates money laundering.

 

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SANCTIONS

There are no international sanctions currently in force against this country.

 

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BRIBERY & CORRUPTION

 

Index

Rating (100-Good / 0-Bad)

Transparency International Corruption Index

18

World Governance Indicator – Control of Corruption

4

 

 

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INVESTMENT CLIMATE - Executive Summary (US State Department)

In April 2014 Angola celebrated the twelfth anniversary of the peace agreement that brought its devastating 27 year civil war to an end and inaugurated a period of rapid and sustained economic growth driven by oil production and exports. Angola ranks as one of the fastest growing economies in the world.

Much of this growth is directly attributable to the development of the oil and gas sector. Angola has emerged as Sub-Saharan Africa’s second largest oil producer after Nigeria, producing approximately 1.7 million barrels per day. The Kwanza basin is regarded as one of the world’s richest untapped reservoirs of crude with the potential to significantly increase Angola’s production capacity. Angola also has the second largest natural gas reserves in Africa. The diamond industry is Angola’s second largest export commodity after oil. However, other minerals such as gold, iron, copper, granite and marble are also abundant. The move to diversify Angola’s mining base away from diamonds is already underway driven by improvements in rail and road networks and vital changes to the mining law that confer greater protection to investors.

The Angolan financial system has also improved. Credit to the private sector has increased and the penetration rate has improved. However, there is no stock market. The money market has very few tradable instruments. Penetration of microfinance institutions remains low, and regional disparities remain high. Enhancing the capacity of the financial sector to intermediate funds into productive investment will be crucial for driving non-oil growth in the private sector.

The future of Angola hinges on the further successful diversification of its economic activity.

 

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FURTHER REPORTS

 

17 September 2014 - IMF Report: Angola: 2014 Article IV Consultation-Staff Report

Extract: -

‘Progress continues to be made to improve Angola’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework. The AML/CFT law was amended in January 2014, addressing some of the most pressing outstanding issues identified by the Financial Action Task Force (FATF), and Angola’s Financial Intelligence Unit has recently been endorsed as a new member of the Egmont Group. In June 2014, the FATF encouraged the authorities to make further improvements by, inter alia, addressing the remaining issues regarding criminalization of money laundering and ensuring that Angola has an adequate legal framework for the confiscation of funds related to money laundering.’

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