Assessment of Angola's financial system being prepared by BNA
Fresh Take:
Angola's National Bank (BNA) proudly flaunts the kudos from the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) for its sweet-spot supervisory model in the regional Financial Action Task Force (FATF) rings.
But things ain't all sunshine and rainbows. The BNA admits it's gonna partner up with the International Monetary Fund (IMF) and World Bank for a deep-dive review of Angola's financial system. This Financial System Assessment Program (FSAP) is designed to sniff out system vulnerabilities and propose a mighty plan for fortification.
In 2024, BNA inspected a dozen banking and non-banking institutions like a hawk. Their focus was on internal controls fighting money laundering and terror financing. While they found less than stellar stuff like sloppy customer ID procedures and manual risk classification, they didn't just wag their fingers—they issued recommendation letters and sanctions to the miscreants.
Five of those naughty institutions have already cleaned up their acts, but 28 more are still sweating it out, with a deadline extending until March 2025. During the FATF's peer review period, various actions were taken, such as sectoral risk assessments for money laundering and terror financing, beefing up human capital, and strengthening regulatory frameworks.
Yee-haw! Angola galloped onto the FATF's "gray list" in October 2024, squeezing between countries with lax anti-money laundering and counter-terrorist financing procedures. This ain't no rosy list—it's a call for more intensive oversight from that international watchdog, which may lead to a financial cold shoulder from the world.
Rumor has it that 70% of Angola's inflation was brewed in Luanda—only time will tell, I guess.
Insights:- Angola's financial system is facing scrutiny due to gaps in anti-money laundering and counter-terrorist financing regulations (source: Enrichment Data)- Angola is among other countries under examination by the FATF (source: Enrichment Data)- Countries on the FATF's gray list are typically compelled to commit to action plans and demonstrate progress through regular reviews (source: Enrichment Data)- Bulgaria, which recently exited the FATF gray list, provides a reference for potential remediation measures Angola might adopt (source: Enrichment Data)
- What is the current status of Angola's financial system in light of the gaps in anti-money laundering and counter-terrorist financing regulations? It is under international scrutiny. (source: Enrichment Data)
- In what group does Angola find itself, following its inclusion on the FATF's "gray list"? It is among countries requiring more intensive oversight from the international watchdog. (source: Enrichment Data)
- What is the potential consequence for countries on the FATF's gray list? They are typically compelled to commit to action plans and demonstrate progress through regular reviews. (source: Enrichment Data)
- Which country could serve as a reference for potential remediation measures Angola might adopt, after exiting the FATF gray list? Bulgaria. (source: Enrichment Data)
- What does the Financial System Assessment Program (FSAP) aim to do for Angola's financial system? It seeks to identify system vulnerabilities and propose a plan for fortification.
- In what areas has the BNA focused its scrutiny of banking and non-banking institutions? Internal controls combating money laundering and terror financing.
- What kind of sloppy practices were found in customer ID procedures and manual risk classification by the BNA? Less than stellar ones.
- What steps are being taken in the peer review period to address the identified issues in Angola's financial system? Sectoral risk assessments, building human capital, and strengthening regulatory frameworks are among them.
- What industry is deeply intertwined with the Angola's financial system, and is of critical importance in the effort to prevent money laundering and terror financing? The banking industry, particularly banking and insurance.
- In what broader fields can education and self-development, career development, job search, and skills training aid individuals seeking to navigate the complex world of personal finance, wealth management, and cybersecurity in the banking and finance sector? They can offer essential knowledge and tools for understanding and managing their personal finances, as well as advance their careers in these industries.
