JPMorgan Chase & Co. is returning to Angola’s financial system, becoming the first U.S. bank to resume dollar clearing services in the country after years of compliance concerns.
- JPMorgan Chase & Co. has re-entered Angola’s financial market, providing dollar clearing services for the first time in years.
- This move symbolises Angola’s progression toward better integration into the global financial system.
- Standard Bank Angola received approval to establish correspondent accounts with JPMorgan for U.S. dollar and euro transactions.
- The re-entry of JPMorgan follows a comprehensive review of Angola’s financial evolution post-concerns about corruption and compliance challenges.
JPMorgan Chase & Co. is returning to Angola’s financial system, becoming the first U.S. bank to resume dollar clearing services in the country after years of compliance concerns.
The move marks a significant step in reconnecting Angola to global capital markets and restoring confidence among international financial institutions.
Standard Bank Angola said it received approval to open U.S. dollar and euro correspondent accounts with the Wall Street lender.
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Correspondent banking relationships are essential for cross-border payments and international trade, enabling local banks to clear transactions in major global currencies.
JPMorgan’s decision follows years of internal review as the bank weighed a re-entry into one of Africa’s biggest oil economies.
Boost for Angola’s Global Standing
Major global banks withdrew from Angola about a decade ago due to corruption risks and difficulties complying with international anti-money laundering rules. At the time, Transparency International ranked Angola among the world’s 20 most corrupt nations.
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“This achievement represents much more than the opening of correspondent accounts,” Luis Teles, chief executive officer of Standard Bank Angola, said in the statement. “It marks Angola’s reintegration into the global financial system.”
The move offers a lift for the country, which was placed last year on the Financial Action Task Force’s “grey list” of nations under heightened monitoring for illicit financial flows.
JPMorgan already has financial exposure to Angola: the country pledged about $2 billion in bonds as collateral for a $1 billion loan from the bank late last year.
In April, falling oil prices triggered a margin call on the deal, forcing Angola to post an additional $200 million in collateral.
