Financial Crime World

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AML Compliance Checklist Crucial for Businesses in Namibia

In an effort to combat financial crime and prevent illicit activities, businesses in Namibia must ensure they adhere to Anti-Money Laundering (AML) requirements. This includes Know Your Customer (KYC) and Enhanced Due Diligence requirements, which may seem cumbersome but are essential in preventing criminals from using the financial system to launder funds.

According to Njeri Siska, Head of Anti-Money Laundering at Bank Windhoek:

“The primary objective of these AML requirements is to report Suspicious Transactions and/or Activities Reports (STR/SAR’s) to enable law enforcement and prevent criminals from benefiting from their illegal activities.” Siska emphasized that these measures also protect banks like Bank Windhoek from being used as institutions to launder illicit funds.

The Importance of Reporting STR/SAR’s

The Financial Intelligence Centre (FIC) of the Bank of Namibia recently released a statistical report indicating that tax evasion remains the leading potential offence in all suspicious reports finalized. This highlights the importance of STR/SAR’s not only in assisting law enforcement but also in protecting the Namibian economy from losing funds through illicit activities.

What are Suspicious Transactions and Activities?

From a bank’s perspective, any transaction that does not match a client’s profile is considered suspicious. For example:

  • When a client’s source of funds is not aligned with the transaction
  • There is no identification documentation available
  • The transaction is unusually large or frequent

These types of transactions may be reported as an STR or SAR to the FIC.

When Should You Report a STR/SAR?

The fight against financial crime is a responsibility shared by all citizens and residents of Namibia. If you have knowledge of any suspicious activity/transaction concluded in any business, or suspect that a business received or is about to receive proceeds of unlawful activities, you must report it immediately to the FIC.

Are Reporters Protected?

In terms of section 50(2) of the Financial Intelligence Act, the identity of a person providing information and the information itself is confidential. This means that:

  • It cannot be disclosed unless done to assist the FIC
  • Reporters are protected from any liability or prosecution for reporting suspicious activity

How Should You Submit an STR/SAR?

Reports can be submitted online through the FIC website at www.fic.na/goAML or in exceptional cases, by completing forms in Annexures 1 and 2 of the Regulations and sending them:

  • By facsimile
  • Hand delivery to the Centre

Remember: Reporting suspicious activity is crucial in preventing financial crime and protecting the Namibian economy. If you have any knowledge of suspicious transactions or activities, report it immediately to the FIC.