Circular Letter No. 10/2022

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CIRCULAR LETTER NO. 10/2022 SUBJECT: FINANCIAL SYSTEM

• Disclosure of Financial Action Task Force (FATF) Measures

Considering the need to protect the International Financial System from Risks Associated with Money Laundering, Terrorist Financing, and Proliferation of Weapons of Mass Destruction, the Financial Action Task Force (FATF) held a plenary session between October 20 and 21, 2022, to define prevention and interruption policies for financial flows that support crime and terrorism, highlighting the disclosure of the following documents:

1. HIGH-RISK JURISDICTIONS SUBJECT TO THE APPLICATION OF COUNTERMEASURES The document identifies jurisdictions subject to countermeasures and those with strategic deficiencies in money laundering/terrorist financing (ML/TF) prevention that have not yet made sufficient progress to address these deficiencies and/or have not agreed with the FATF on an action plan for this purpose. On the other hand, the list of high-risk jurisdictions subject to countermeasures remains unchanged since the February 2020 plenary session to date. The countries subject to countermeasures are indicated on the FATF website and can be consulted via the following link: https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/call-for-action-october-2022.html, namely: the Democratic People's Republic of Korea (North Korea), the Islamic Republic of Iran, and the Union of Myanmar.

2. JURISDICTIONS UNDER CONTINUOUS MONITORING BY THE FATF The document identifies jurisdictions with strategic deficiencies in ML/TF that have developed an action plan to address them and are subject to a monitoring process by the FATF. This does not call for the application of enhanced due diligence measures to the jurisdictions in question; however, it encourages all jurisdictions to consider the status of the countries listed here when conducting their risk assessments. The countries falling under the situation described in this point, also known as the "grey list", along with the status of their systems for preventing and combating money laundering, terrorist financing, and weapons of mass destruction proliferation, are indicated on the FATF website and can be consulted via the following link: https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-october-2022.html, namely: Albania, Barbados, United Arab Emirates, Burkina Faso, Cambodia, Cayman Islands, Gibraltar, Haiti, Yemen, Jamaica, Jordan, Mali, Morocco, Panama, Philippines, Senegal, South Sudan, Syria, Turkey, Uganda, Mozambique, Tanzania, and the Democratic Republic of the Congo.

3. JURISDICTION NOT SUBJECT TO CONTINUOUS MONITORING BY THE FATF The document identifies jurisdictions that, having fulfilled their action plan, have been removed from the so-called "grey list" and are no longer under quarterly monitoring by the FATF. The countries falling under the situation described in this point are indicated on the FATF website and can be consulted via the following link: https://www.fatf-gafi.org/publications/fatf-general/documents/outcomes-fatf-plenary-october-2022.html, namely: the Republic of Nicaragua and the Islamic Republic of Pakistan.

4. PROCEDURES AND MEASURES ADOPTED BY FINANCIAL INSTITUTIONS In view of the content of the documents produced by the FATF and within the scope of the information dissemination duty to which supervisory authorities are bound under Article 55 of Law No. 05/20, dated January 27 (Law on the Prevention and Combating of Money Laundering, Terrorist Financing, and Proliferation of Weapons of Mass Destruction), the Banco Nacional de Angola hereby directs the following:

[Continuation of Circular Letter No. 10/2022 page 3 of 3] a) To Countries or Jurisdictions in the situation described in point No. 1 of this circular and indicated on the FATF website: i) Financial Institutions must apply enhanced due diligence measures, in accordance with Articles 14 and 28 of Law No. 05/20, dated January 27, to any business relationships, occasional transactions, and operations conducted with persons, entities, and unincorporated collective interest groups1 related to the country or jurisdiction in question. Among the measures to be applied, prior submission of the operation for authorization by the governing body (board of directors, management) must be included; ii) If for any reason it is not possible to apply or conclude the enhanced due diligence measures, consider the non-commencement or termination of the business relationship or transactions; b) To Countries or Jurisdictions in the situation described in point No. 2 of this circular and indicated on the FATF website, consider their status in customer and transaction risk assessments. This information must be archived in the files related to the respective transactions;

5. Supplementary information on the conclusions of the FATF plenary meeting may be obtained on the official FATF website at: https://www.fatf-gafi.org/publications/fatf-general/documents/outcomes-fatf-plenary-october-2022.html.
6. This Circular Letter enters into force on the date of its publication.

Luanda, October 27, 2022. FINANCIAL CONDUCT DEPARTMENT

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Osvaldo Manuel Pedro dos Santos -Director- 1 Including their respective representatives and beneficial owners.