Financial Crime World

Botswana Concludes National Anti-Money Laundering and Counter Financing of Terrorism Risk Assessment

A Major Milestone for Botswana’s Financial Sector

Gaborone, Botswana - Botswana has completed its National Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Risk Assessment, a significant achievement in the fight against financial crimes. The assessment was conducted with the support of the World Bank, making it the 11th African country to undertake such an exercise.

A Global Obligation

The Financial Action Task Force (FATF) introduced a global obligation in 2012 requiring countries to conduct a National AML/CFT Risk Assessment to strengthen their systems and mitigate identified risks. Botswana’s assessment was facilitated by the World Bank’s National AML/CFT Risk Assessment Tool, which has been used by over 40 countries worldwide.

The Comprehensive Risk Assessment

The risk assessment involved more than 50 officials from approximately 20 collaborating ministries and agencies. The team collected and analyzed vast amounts of data to identify and prioritize the main money laundering and terrorist financing risks faced by Botswana.

Identified Risks

  • Wildlife poaching
  • Weak controls in the diamond sector
  • Auto theft
  • Financial crimes such as tax evasion and corruption
  • Weaknesses in national AML/CFT control systems, including legal frameworks and implementation effectiveness

Strengthening Compliance

Botswana’s National AML/CFT Risk Assessment is a crucial step towards complying with international obligations and strengthening its fight against money laundering, terrorist financing, and related criminal activities. The country’s officials are now better equipped to target resources effectively and mitigate the identified risks.

“We appreciate the World Bank’s assistance throughout this project,” said Elaina Gonsalves, Deputy Secretary for economic and finance policy in the Ministry of Finance and Economic Development. “We will work towards strengthening our legal framework to combat money laundering and terrorist financing.”

Benefits of the Assessment

The completed risk assessment will enable Botswana to strengthen its country systems and apply appropriate control measures to prevent illicit financial flows (IFFs) and contribute to stronger economic development, shared prosperity, and reduced poverty.

A Significant Step Forward

Botswana’s achievement is a significant step forward in the fight against financial crimes, and it sets an example for other countries in Africa to follow.