The Board of Directors for the Capital Markets Commission of Angola recently approved Regulation No. 4/2016, which establishes conditions and procedures for compliance with obligations under Law No. 34/2011 (Money Laundering and Anti-Terrorism Law).
The new Regulation applies to financial institutions under the supervision of the Capital Market Commission, to the managing bodies of regulated markets and to entities that carry out investment activities in securities, among others. The Regulation establishes specific mechanisms related to the prevention and suppression of money laundering and terrorist financing activities.
Among other mechanisms, the Regulation outlines the diligence and identification duties (e.g., in case of a transaction being carried out without the physical presence of the customer), procedures of internal control through risk assessment indicators, the duty to report suspicious transactions, the duties of cooperation, record keeping, training of employees, and supervision of prevention systems. In addition, the entities subject to the new Regulation will be required to appoint a Compliance Officer, who will be responsible for managing and monitoring the implementation of procedures and policies to combat money laundering activities. Violations of these provisions set forth in the Regulation could be subject to the penalties described in Law No. 34/2011 and, eventually, in Law No. 03/14.
Regulation No. 4/16 will enter into force on August 1, 2016.
Observations in this update about Brazilian law are by Tauil & Chequer Advogados and are not intended to provide legal advice. Any entity considering the possibility of a transaction must seek advice tailored to its particular circumstances.