Remote VASP serving residents in Angola

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Notice No. 03/2019: Prohibited Angolan financial institutions (banks, payment service providers, etc.) from carrying out any transactions involving virtual assets, holding them, or providing services related to them.

BNA's Prohibitions: The most significant "enforcement" has been the BNA's direct prohibition on financial institutions from engaging with crypto assets (Notice No. 03/2019). This is a preventative regulatory action rather than a reactive enforcement against a specific violation.

General Warnings: Ongoing public warnings from the BNA about the risks of virtual assets.

Lei do Mercado de Valores Mobiliários (Securities Market Law) - Law No. 22/15 of September 11, 2015:

Registration with the CMC: Any public offering of securities requires prior authorization from the CMC.

Prospectus Requirement: Issuers must publish a detailed prospectus containing all necessary information for investors to make an informed decision.

Regulated Exchanges: Trading would have to occur on a regulated exchange authorized by the CMC. Currently, Angola's sole stock exchange, BODIVA (Bolsa de Dívida e Valores de Angola), does not list or facilitate the trading of cryptocurrency tokens or security tokens.

Investment Tokens/Security Tokens: Any token designed to represent traditional securities on a blockchain, such as shares in a company, debt instruments, or units in a collective investment scheme.

AML/CFT Compliance: Exchanges and participants would need to adhere to anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.

AML/CFT Focus (Hypothetical): Any future enforcement against illicit crypto activities would likely fall under existing AML/CFT laws, which are being strengthened in line with FATF recommendations. Unregistered offerings or fraudulent schemes involving crypto assets would likely be prosecuted under general fraud laws or laws against unauthorized financial activities, rather than specific crypto-securities violations.

Lei n.º 5/20, de 27 de Janeiro – Lei sobre a Prevenção e Combate ao Branqueamento de Capitais, Financiamento do Terrorismo e Proliferação de Armas de Destruição em Massa (Law No. 5/20, of January 27 – Law on the Prevention and Combat of Money Laundering, Financing of Terrorism and Proliferation of Weapons of Mass Destruction).

Identification and Verification:

Individual Clients: Obtain and verify identity (full name, address, date of birth, nationality, unique identification number from official documents like passport or national ID card).

Legal Entities/Companies: Obtain and verify legal name, registration number, address, articles of incorporation, details of beneficial owners (BOs) – identifying individuals who ultimately own or control more than a specified percentage (e.g., 25%) of the entity, senior managing officials, and proof of legal existence.

Purpose and Nature of Business Relationship: Understand the purpose and intended nature of the business relationship or transaction.

Source of Funds/Wealth: For high-risk clients or transactions, collect information on the source of funds or wealth involved.

Ongoing Monitoring: Continuously monitor the business relationship and transactions to ensure consistency with the institution's knowledge of the customer, their business, risk profile, and, where necessary, the source of funds.

Politically Exposed Persons (PEPs): Implement specific procedures to determine if a customer or beneficial owner is a PEP, and apply enhanced CDD (ECDD) measures, including senior management approval for establishing or continuing relationships with PEPs, and reasonable measures to establish the source of wealth and funds.

Sanctions Screening: Screen clients against national and international sanctions lists (e.g., UN Security Council sanctions).

Risk-Based Approach: Apply CDD measures on a risk-sensitive basis. More intense measures should be applied to higher-risk situations (e.g., complex transactions, non-face-to-face relationships, clients from high-risk jurisdictions, transactions involving large sums).

Technology-Specific CDD: For VASPs, this would include verifying wallet ownership where practical and maintaining transaction traceability.

Obligation to Report: Any transaction, attempted transaction, or activity that raises suspicion of money laundering, terrorist financing, or proliferation financing must be reported.

Promptness: Reports must be made promptly, typically within a few days of forming a suspicion.

No Tipping-Off: Reporting entities and their employees are prohibited from disclosing to the customer or third parties that an STR is being or has been filed.

Customer Identification Records: All documents and information obtained during the CDD process (e.g., copies of identification documents, business registration documents, beneficial ownership information).

Transaction Records: Details of all financial transactions, including amounts, currencies, dates, parties involved, and any specific notes or instructions.

STRs and Related Information: Copies of all suspicious transaction reports filed and any internal analysis or documentation supporting the suspicion.

Duration: Records must typically be kept for a minimum of five to seven years after the business relationship has ended or after the date of an occasional transaction.

Unidade de Informação Financeira (UIF) – Financial Intelligence Unit:

Whether Adopted: No. The FATF Travel Rule, as a specific requirement for VASPs to exchange originator and beneficiary information, has not been adopted. Instead, the BNA has largely prohibited regulated financial institutions from engaging with virtual assets.

Which VASPs are Covered: Not applicable. Angolan regulated financial institutions (banks, payment service providers) are generally prohibited from dealing with virtual assets, directly or indirectly. There is no specific licensing or regulatory framework for independent VASPs in Angola at this time; rather, the ecosystem is largely restricted for regulated entities.

Aviso n.º 05/2021 (Notice No. 05/2021) from the Banco Nacional de Angola (BNA), dated 20 October 2021:

Content: This is the most significant regulatory document concerning virtual assets. It prohibits financial institutions and payment service providers from carrying out, directly or indirectly, any activity with virtual assets. This includes holding, selling, exchanging, or providing services related to virtual assets. It cites concerns about consumer protection, financial stability, and the high risks associated with money laundering and terrorism financing.

Regulator: Banco Nacional de Angola (BNA)

Entity Targeted: General Public and Financial Institutions (no specific crypto entities named in public enforcement). Violation Type (Implied): Operating unregistered or unregulated financial services, consumer protection risks, lack of legal tender status, money laundering risks. Penalty Amount: Not applicable, as these were warnings, not direct penalties against entities.

Outcome: Advising citizens against using cryptocurrencies, reminding financial institutions of their obligations regarding unregistered financial products, and reiterating that cryptocurrencies are not legal tender in Angola.

Club of Mozambique: "Angola: Central Bank issues new warning on Bitcoin and cryptocurrencies"