JPMorgan Chase & Co. has reentered Angola’s financial system, becoming the first U.S. bank to resume dollar clearing services in the country after years of withdrawal over compliance and corruption concerns.
The move represents a significant step toward reconnecting Angola with global capital markets and rebuilding confidence among international financial institutions.
As per Business Insider Africa, Standard Bank Angola confirmed it has received approval to open U.S. dollar and euro correspondent accounts with JPMorgan.
Such correspondent banking relationships are critical for facilitating cross-border payments and global trade, allowing local banks to process transactions in major international currencies.
JPMorgan’s return follows an extensive internal review as the bank evaluated re-establishing operations in one of Africa’s largest oil-producing economies.
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For Angola, the decision marks a milestone in restoring its global financial credibility. Most major banks had exited the market nearly a decade ago, citing corruption risks and the difficulty of meeting stringent international anti-money laundering standards.
At the time, Transparency International ranked Angola among the world’s 20 most corrupt countries.
“This achievement represents much more than the opening of correspondent accounts,” said Luis Teles, chief executive officer of Standard Bank Angola. “It marks Angola’s reintegration into the global financial system.”
The development comes as Angola continues efforts to address its inclusion on the Financial Action Task Force’s “grey list,” which flags countries under increased monitoring for potential illicit financial activities.
JPMorgan already maintains some financial exposure to Angola. The Angolan government pledged around $2 billion in bonds as collateral for a $1 billion loan from the bank late last year.
When oil prices fell in April, the decline triggered a margin call on that agreement, prompting Angola to post an additional $200 million in collateral.
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Image Credit: Finance In Africa
