FATF Status

Angola is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 25 October 2024

In October 2024, Angola made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime. Since the adoption of its MER in June 2023, Angola has made progress on some of the MER’s recommended actions including enhancing national cooperation and coordination, international cooperation and the use of financial intelligence by competent authorities. Angola will continue to work with the FATF to implement its FATF action plan by: (1) enhancing its understanding of ML/TF risks; (2) improving risk-based supervision of non-financial banking entities and DNFBPs; (3) ensuring competent authorities have adequate, accurate and timely access to beneficial ownership information and that breaches to obligations are adequately addressed; (4) demonstrating an increase in ML investigations and prosecutions; (5) demonstrating the ability to identify, investigate and prosecute TF; and (6) demonstrating an effective process to implement targeted financial sanctions without delay.

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Angola was undertaken in 2023. According to the Evaluation, Angola was deemed Compliant for 7 and Largely Compliant for 15 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Corruption continues to be a significant barrier to business in Angola, despite improvements since 2017 and the establishment of a legal framework aimed at combating it. The Lourenco administration has made efforts to address corruption through arrests and asset recovery, but challenges in implementation persist, as reflected in Angola's low ranking on the Transparency International Corruption Perceptions Index. The pervasive nature of corruption, particularly in public institutions and procurement, necessitates that foreign investors remain vigilant about the associated risks.

Angola's economy is primarily driven by the oil sector, which significantly influences government revenue despite efforts to diversify through the National Development Plan (2023-2027). The country faces macroeconomic challenges, including high inflation nearing 25%, a depreciated currency, and high interest rates, while projected economic growth is around 3% for 2024, largely supported by domestic demand. Despite these challenges, Angola is focusing on infrastructure modernization and human capital investments to stimulate growth and reduce unemployment.

Angola is actively working to enhance its investment climate, prioritizing reforms in its National Development Plan (2023-2027) that focus on economic diversification and infrastructure modernization. Despite facing macroeconomic challenges such as high inflation and a depreciated currency, foreign direct investment (FDI) has increased, particularly in sectors like offshore oil and gas technologies and agriculture. However, issues like corruption and a slow judicial system remain significant barriers to attracting more investment.