Circular Letter No. 05/2023

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CIRCULAR LETTER NO. 05/2023
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 June 21 and 23, 2023, to define prevention and interruption policies for financial flows sustaining 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 and 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/en/publications/Fatfgeneral/Call-for-action-June-2023.html, namely: Democratic People's Republic of Korea (North Korea), Islamic Republic of Iran.

2. JURISDICTIONS SUBJECT TO A SPECIAL ASSESSMENT OF ASSOCIATED RISKS
   A new category has been included, which can be consulted at the link: https://www.fatf-gafi.org/en/publications/Fatfgeneral/Call-for-action-June-2023.html, listing the Union of Myanmar.

3. 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 falling under this description, 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/en/publications/Fatfgeneral/Increased-monitoring-june-2023.html, namely: Albania, Barbados, United Arab Emirates, Burkina Faso, Cayman Islands, Gibraltar, Haiti, Yemen, Jamaica, Jordan, Mali, Panama, Philippines, Senegal, South Sudan, Syria, Turkey, Uganda, Mozambique, Tanzania, Democratic Republic of the Congo, South Africa, Nigeria, Cameroon, Croatia, and Vietnam.

4. PROCEDURES AND MEASURES ADOPTED BY FINANCIAL INSTITUTIONS
   Taking into account 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 National Bank of 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) Considering the existence of a very high risk of money laundering, terrorist financing, and weapons of mass destruction proliferation, it is determined, under the terms and for the purposes of paragraph 2 of Article 28 of Law No. 05/20, dated January 27, the adoption of countermeasures proportional to those risks; ii) The countermeasures to be applied by Financial Institutions may include, among others, the following:
a. Limiting business relations or financial operations with the identified country or persons in those countries; b. Assessing the modification or, if necessary, termination of correspondent banking relationships with institutions in the countries in question;
c. Imposing enhanced obligations regarding external audit for financial groups concerning their branches and subsidiaries located in the countries in question;
d. Not relying on third parties located in the countries in question to carry out segments of the customer due diligence process; and e. Introducing relevant enhanced reporting mechanisms or systematic declaration of financial operations.

b) Enhanced due diligence measures, in accordance with paragraph 1 of Article 28 of Law No. 05/20, dated January 27, shall be adapted and all business relations, occasional transactions, and operations involving the Union of Myanmar shall be examined with special care. c) If deemed insufficient, enhanced due diligence measures applied or to be applied shall lead to the non-initiation or termination of business relations or transactions.

d) To countries or jurisdictions in the situation described in section 3 of this circular and indicated on the FATF website, enhanced due diligence measures proportional to the specifically identified risk shall be applied, in accordance with Article 14 of Law No. 05/20, dated January 27.

5. Supplementary information on the conclusions of the FATF plenary meeting may be obtained from the official FATF website at: https://www.fatf-gafi.org/en/publications/Fatfgeneral/outcomes-fatf-plenary-june-2023.html
6. This Circular Letter enters into force on the date of its publication.

Luanda, July 11, 2023.
DEPARTMENT OF FINANCIAL CONDUCT

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Osvaldo Manuel Pedro dos Santos
-Director-