Circular Letter No. 02/DCF/2022

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CIRCULAR LETTER NO. 02/DCF/2022
SUBJECT: FINANCIAL SYSTEM

• Disclosure of Measures by the Financial Action Task Force (FATF)

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 February 2 and 4, 2022, to define prevention policies and interrupt financial flows supporting 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 the present 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-2021.html

2. JURISDICTIONS UNDER CONTINUOUS MONITORING
   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 countries listed here when conducting their risk assessments. The countries included in the situation described in this section, also known as the "grey list", along with the status of their systems for preventing and combating money laundering, terrorist financing, and 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-march-2022.html

3. JURISDICTIONS 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 the FATF's quarterly monitoring process. The countries included in the situation described in this section 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-march-2022.html

4. PROCEDURES AND MEASURES ADOPTED BY FINANCIAL INSTITUTIONS
   Considering 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:
   a) To countries or jurisdictions in the situation described in section 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 individuals, entities, and unincorporated collective interest centers1 related to the referred country or jurisdiction. Among the measures to be applied, prior submission of the operation for authorization by the management body (board of directors or executive management) must be included. ii) If deemed insufficient, the applied or to-be-applied enhanced due diligence measures should lead to considering the non-initiation or termination of business relationships or transactions; b) To countries or jurisdictions in the situation described in section 2 of this circular and indicated on the FATF website, their status must be considered in customer and transaction risk assessments. This information must be archived in the files related to the respective transactions; 1 Including their respective representatives and beneficial owners

5. Supplementary information regarding the conclusions of the FATF plenary meeting may be obtained on the official FATF website at: https://www.fatf-gafi.org/publications/fatfgeneral/documents/outcomes-fatf-plenary-march-2022.html
   This Circular Letter enters into force on the date of its publication.
   Luanda, March 14, 2022.
   DEPARTMENT OF FINANCIAL CONDUCT