Luanda - The European Union (EU) on Tuesday urged Angola to create a robust, effective and transparent mechanism to produce statistical information and recovered assets management, in line with good international practices, its representative in Angola, Paulo Barroso said Friday.
Speaking at a workshop running under the motto “Understanding tax fraud and money laundering: exchanging experiences between Angola, Italy and Portugal,” the EU official said these and other aspects have been mentioned in the FATF Mutual Evaluation Report and recognized by the authorities as areas that should be given special attention.
According to Paulo Barroso, tax fraud and evasion in Angola created harmful repercussions on the state's revenue collection, limiting its ability to finance its public policy priorities and considerably delaying economic and social recovery, as well as sustainable development efforts.
Barroso singled out the areas of economic and financial crime, embodied in high levels of illicit financial movements, installed corruption and subsequent money laundering, due to their growing complexity, negative impact and transnational nature.
“Its powerful tentacles increasingly require fine-tuned and adjusted intersectoral and international coordination, without which it will not be possible to defeat the powerful crime networks,” he stressed.
The EU representative explained that in 2010 Angola began a tax reform process through the creation of an executive project for the reform of the sector that essentially seeks to improve its base, increase non-oil tax revenues and reduce the tax burden on taxpayers.
Barroso highlighted that despite the adversities, Angola has shown a firm will to strengthen and protect itself against this type of crime and has worked together with international partners.
The EU official stressed that several achievements have been made, in particular progress in legislation, which is more in line with social reality and international best practice, and the creation of new specialized services, which have shown increasing effectiveness in their functions.
He added that the training of the institutions and their staff clearly allows for a much greater knowledge of matters related to economic and financial crime, with particular emphasis on money laundering and related crimes.
The coordinator of the UNODC offices, Manuela Carneiro, on his turn said Angola’s anti-money laundering and anti-terrorist financing system has recently been assessed by the Financial Action Task Force (FATF) and recommendations had been issued so that it could be strengthened against these global threats.
According to the official, organized crime is often involved in tax fraud schemes, which exploit the limits of legal frameworks to obtain illicit gains.
In his view, an inclusive tax cooperation system can adequately respond to the challenges of strengthening national resources to enable all countries to finance and promote policies in line with the 17 Sustainable Development Goals (SDGs).
Italy's ambassador to Angola, Cristiano Gallo, pointed out that an efficient legal system aligned with the main international standards and committed to fighting organized crime, money laundering and corruption helps to build a legally oriented economic environment, a fundamental requirement for solid economic growth and increased investor confidence.
On the other hand, the administrator of the General Tax Administration (AGT), Tiago Santos, without giving any figures, highlighted the record of considerable financial losses, stating that there is no privileged sector, as these crimes operate through the creation of fictitious companies, whether imports or exports, or activities in the non-banking sector.
Promoted by the United Nations Office on Drugs and Crime, with funding of the European Union, the event aims to develop an effective system in Angola to combat money laundering and illicit financial flows
Participating in the event are, among others, members of the Tax Police, judges, technicians from the AGT and SIC. MGM/SC/TED/AMP
