Regulatory Alerts2020-08-17
Circular Letter No. 002-DCC-2020
The Bank of Angola issued Circular Letter No. 002-DCC-2020 to mandate banking institutions conduct rigorous validation of current invisible foreign exchange transactions for legal entities, ensuring legitimacy and preventing capital flight. The guidelines require banks to implement enhanced customer due diligence, verify that contracted technical or specialized services are genuinely needed and priced at market rates, and strictly assess contract terms, counterparties, and pricing structures. Banks must complete a retrospective review of all active contracts within 90 days, suspending payments for non-compliant agreements and reporting confirmed foreign exchange fraud to the Financial Information Unit.
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