The meetings between the National Bank of Angola (BNA) and the European Central Bank to give the BNA central bank equivalence with supervision is due to take place in the first quarter of 2017, reported the press office of the BNA.
Initially scheduled for 2019, the evaluation process follows the package of measures in place to prevent the BNA being put on the fringes of the international financial system and to restore the sale of foreign currency to the country, which was stopped in mid 2015 by correspondent banks in the United States.
Earlier that same year, the European Central Bank excluded Angola from the list of third countries with equivalent regulation and supervision to the European Union, increasing the risk of investing in Angola.
In the second quarter of 2016, the BNA presented the “project to adjust the Angolan financial system to the prudential standards and best international practices,” in order to strengthen its position as a supervisory authority, imposing itself as an entity that dictates the rules of the financial system and that monitors it.
Jornal de Angola reported that the earlier date is a result of recent trips by the BNA governor’s team to Europe, where Valter Filipe met with financial regulatory institutions.
The process of recognition as a supervising entity involves following a set of measures and challenges, including security in banking transactions in national and foreign currencies. For enterprises and households, the concern is about using informal channels to satisfy foreign exchange needs.
The European Central Bank requires that Angola put an end to the informal foreign exchange market, improve the management of transactions in US dollars and combat money laundering and terrorist financing. (macauhub)