On July 9, 2020, a Swiss criminal appellate court in the Canton of Geneva froze $900 million held in the accounts of Carlos Manuel de São Vicente, an Angolan businessman, as a result of a money laundering investigation.[1]
In December 2018, prosecutors froze $1.25 billion in accounts connected to São Vicente, his family and companies after they received on November 29, 2018 suspicious activity reports made by Swiss banks on a transfer of $212.9 million.[2]
São Vicente is a Portuguese-Angolan citizen who is the former chairman and CEO of AAA Seguros. A 2001 presidential decree gave the company a monopoly to insure oil sector activity in Angola. It continued until 2016. In 2020, AAA Seguros was dissolved.[3]
Vicente is the spouse of Irene Alexandra da Silva Neto, a former member of parliament and vice-minister in the Jose Eduardo dos Santos administration. The latter was President of Angola from 1979 to 2017.
Prosecutors contend that part of AAA Seguros’ funds transferred to Vicente’s account belonged to Sonangol, Angola’s state-owned oil company. Sonangol owned 10% of AAA Seguros.[4]
Prosecutors became aware that Vicente was trying to transfer all of his personal account to Singapore. Vicente says he ordered the transfer because he was dissatisfied with the bank’s management of his account.[5]
Vicente explained to Swiss authorities that the transfer of $213 million from AAA Seguros to him was a partial reimbursement for loans.[6]
In 2016, a presidential decree revoked AAA’s insurance role over the oil industry. The decree explained AAA’s “allegedly non-transparent management.” Earlier this year the government revoked the company’s authorization to operate in Angola.[7]
In December 2018, Swiss public prosecutors froze seven accounts of Vicente and family members. The court has removed the freezing order on six of the accounts.[8]
The judgment illustrates the utility of suspicious transactions reports, since in this case it triggered action by the Swiss Financial Intelligence Unit and then the prosecutor. The Swiss financial and judicial systems have been increasingly proactive in finding and taking action on apparent proceeds of crime, especially where corruption may be involved.
The Angolan administration of João Lourenço has prioritized combatting corruption. On March 2020, the Swiss authorities received information and documentation in connection with the investigation.[9]
[1] Carlos Manuel de São Vicente v. Le Ministère Public, Swiss criminal appellate court in the Canton of Geneva, Judgment, P/23676/2018; ACPR/480/2020, July 9, 2020 https://www.icij.org/investigations/luanda-leaks/switzerland-freezes-angolan-tycoons-900-million-fortune/
[2] Id., paragr. b.e on p. 3. See also Will Fitzgibbon, Switzerland freezes Angolan tycoon’s $900 million fortune, ICIJ, Aug. 28, 2020.
3] Judgment, paragr. g.b. on p. 4 and Fitzgibbon, supra.
[4] Fitzgibbon, supra.
[5] Id. See Judgment, g.a on p. 4.
[6] Fitzgibbon, supra.
[7] Dmitry Zhdannikov and Noah Browning, Reuters, Switzerland Freezes $900M Belonging to Angolan Insurance Executive, https://www.insurancejournal.com/news/international/2020/09/03/581352.htm Sept. 3, 2020.
[8] Fitzgibbon, supra.
[9] Judgment, parag. l on pp. 6-7.