Overview
Angola’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework is anchored by Law 5/20, enacted in January 2020. This legislation brought Angola into closer alignment with international standards set by the Financial Action Task Force (FATF) and replaced earlier, less comprehensive provisions. The law applies to all financial institutions, designated non-financial businesses and professions (DNFBPs), and other obliged entities operating within Angola.
Key Provisions of Law 5/20
Law 5/20 establishes a risk-based approach to AML/CFT compliance and introduces several critical obligations:
- Customer Due Diligence (CDD): All obliged entities must verify the identity of customers, beneficial owners, and counterparties before establishing a business relationship or executing occasional transactions above defined thresholds.
- Suspicious Transaction Reporting (STR): Entities must file reports with the Unidade de Informacao Financeira (UIF), Angola’s financial intelligence unit, whenever there is a suspicion of money laundering or terrorism financing.
- Record-Keeping: Documentation of all transactions and CDD records must be retained for a minimum of 10 years.
- Internal Controls: Obliged entities must appoint a compliance officer, implement internal policies, and conduct ongoing employee training.
Predicate Offenses
Law 5/20 expands the list of predicate offenses for money laundering to include corruption, tax evasion, fraud, drug trafficking, human trafficking, arms dealing, environmental crimes, and terrorism. This broader scope reflects FATF Recommendations and supports cross-border cooperation in financial crime investigations.
UIF — Financial Intelligence Unit
The UIF operates under the Banco Nacional de Angola (BNA) and serves as the central authority for receiving, analyzing, and disseminating suspicious transaction reports. Key functions include:
| Function | Description |
|---|---|
| STR Collection | Receives reports from banks, insurers, brokers, and DNFBPs |
| Analysis | Conducts operational and strategic analysis of financial intelligence |
| Dissemination | Shares actionable intelligence with the PGR (Attorney General) and law enforcement |
| International Cooperation | Exchanges information with foreign FIUs through the Egmont Group |
Penalties and Enforcement
Non-compliance with Law 5/20 carries significant penalties:
- Financial institutions: Fines ranging from Kz 50 million to Kz 500 million, depending on severity
- Individuals: Criminal liability for officers who fail to implement required controls, with imprisonment of up to 5 years
- License revocation: The BNA and CMC may revoke operating licenses for repeated or serious violations
- Asset freezing: Authorities may freeze assets linked to suspected money laundering or terrorism financing without prior court order for up to 90 days
Compliance Considerations for Investors
Foreign and diaspora investors should be aware that Angola’s AML/CFT requirements affect account opening, securities transactions, and fund transfers. All KYC procedures must be completed before accessing capital markets through BODIVA. Financial intermediaries licensed by the CMC are required to conduct enhanced due diligence on politically exposed persons (PEPs) and high-risk jurisdictions.
Angola’s position on the FATF grey list has prompted accelerated enforcement activity, making compliance a practical priority for all market participants.