Financial Crime World

Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Requirements in Botswana

Customer Identification and Verification

In order to comply with AML and KYC regulations in Botswana, it is essential to verify the identity of customers through valid documents. The following are the required documents for customer identification:

  • Valid Passports: Acceptable as a primary means of verification.
  • Driver’s Licenses: Valid driver’s licenses can be used for verification purposes.
  • Citizenship ID Cards: Government-issued citizenship ID cards are also accepted.

Address Verification

To confirm addresses, the following documents may be required:

  • Current Utility Bills: Utility bills not older than 3 months can be used to verify addresses.
  • Government-Issued Documents: Government-issued documents such as voter’s registration cards or national ID cards can also be accepted.
  • Bank Statements: Bank statements not older than 3 months may be required for address verification.

Timing of Verification

Identity verification is an ongoing process that must be repeated in multiple instances as per regulations. This ensures that the customer’s information remains up-to-date and accurate.

Politically Exposed Persons (PEPs)

Determine if customers are PEPs, hold public offices, or exhibit higher risk profiles using Shufti Pro’s AML Screening service to assess potential risks and take necessary measures.

Reliance on External Services

While clients may use third-party services for fulfilling AML/KYC obligations, they remain liable for regulatory compliance and due diligence. Ensure that any external services used meet the required standards and regulations.

Key Obligations

AML and KYC Data Retention

Retain customer data (Due Diligence Data) for at least 20 years to ensure compliance with Botswana’s regulations.

Data Collection from Third Parties

Collect necessary information without undue delay if the third party is responsible for processing, collecting, and managing the data.

By following these guidelines, businesses can maintain a strong reputation and adhere to anti-money laundering laws in Botswana. Failure to comply with regulations may result in legal consequences.