Banking Act: Performance of Functions Under the Act
Authority to Investigate Unauthorized Banking Activities
The Bank of Namibia has been granted the authority to investigate and take necessary action against individuals or entities conducting banking business without authorization. This authority is granted under Section 6 of the Banking Act.
Powers of Investigation
According to Section 6, the Bank may authorize an officer to conduct investigations into suspected cases of unauthorized banking activities. The officer is empowered to:
- Enter any premises believed to be connected with such activities
- Search for documents and records
- Seize or make copies of them
- Question individuals present on the premises
The officer may also direct that the premises be left undisturbed until a thorough search has been conducted, and require individuals in control of documents and records to produce them.
Examination of Documents and Records
The officer is further authorized to:
- Examine documents and records
- Require explanations regarding any entries found
Powers to Freeze Accounts and Suspend Businesses
In addition, the Bank may instruct banking institutions to freeze the accounts of suspected individuals or entities, and retain all moneys until further instructions are given. In extreme cases, the Bank may direct that a business be summarily suspended, pending investigation.
Limitations on Powers
The Bank’s powers under Section 6 are not limited to investigations alone. The section also empowers the Bank to take action against individuals or entities found to be conducting unauthorized banking activities. This includes:
- Directing that a business be closed down
- Requiring assistance from members of the Namibian Police Force or other persons in executing its duties
Importance of Authority
The authority granted to the Bank under Section 6 is necessary to ensure that only authorized institutions conduct banking business, thereby protecting the integrity of the financial system and safeguarding the interests of depositors.