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 an anti-corruption legal framework by the Lourenco administration. The country has made efforts to combat corruption through recent legislation, including updated laws on criminal liability and public procurement, but challenges in implementation persist, and corruption remains pervasive in public institutions and the economy. Foreign investors must navigate a high-risk environment characterized by nepotism and a culture of impunity, particularly in the oil and mining sectors.

Angola's economy is primarily driven by the oil sector, which significantly influences government revenue despite ongoing efforts to diversify the economy. The country faces macroeconomic challenges such as high inflation nearing 25%, a depreciated kwanza, and high interest rates above 20%, while projected economic growth for 2024 is around 3%, largely supported by domestic demand. Additionally, Angola's commitment to investment reforms and infrastructure modernization aims to enhance economic resilience and reduce dependence on oil.

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 challenges such as high inflation and a depreciated currency, foreign direct investment (FDI) has seen a notable increase, particularly in sectors like offshore oil and gas technologies and transportation infrastructure. However, issues like corruption and a slow judicial system remain significant barriers to attracting further investment.