The global investment bank JPMorgan has confirmed it will provide dollar clearing services in Angola, becoming the first US bank to return to Luanda after a decade of absence from the local market.
Most major banks stopped providing dollar clearing services to Angola - which allow domestic banks to settle transactions involving US dollars - about a decade ago over concerns that endemic corruption would make it difficult for foreign institutions to comply with anti-money laundering and other compliance regulations.
While the Angolan market still presents risks for global banks - in October last year the Financial Action Task Force FAFT placed the country on its "grey list," meaning it is subject to increased monitoring for illicit financial flows - JPMorgan's re-entry into the market suggests international players may be gaining confidence in Angola's reform efforts.