J.P. Morgan has become the first US bank in nearly a decade to resume dollar clearing services in Angola, marking a major milestone in the country’s efforts to rebuild global financial ties after years of isolation linked to corruption and compliance concerns.
The move ends a nine-year gap since major US banks withdrew from Angola over weak anti-money laundering (AML) and counter-terrorism financing (CFT) enforcement.
J.P. Morgan’s return signals renewed confidence in Angola’s financial reforms and regulatory progress.
Dollar clearing allows Angolan banks to settle US dollar payments through correspondent accounts held with international banks.
Standard Bank Angola has already announced plans to establish dollar and euro clearing relationships with J.P. Morgan, a development expected to ease cross-border transactions and improve liquidity for businesses.
Angola’s financial isolation stemmed from a politicised banking system, poor collateral practices and delayed adoption of global standards like Basel III.
Since 2016, however, the country has implemented sweeping reforms, including currency liberalisation and the introduction of value added tax.
Law 5/20, passed in 2020, overhauled AML/CFT regulations and a 2023 evaluation by the Eastern and Southern Africa Anti-Money Laundering Group found Angola largely compliant with 22 of 40 technical recommendations.
JN/APA