Financial Crime World

Botswana Takes Major Stride Forward in Financial Crime Prevention with Completion of National Risk Assessment

Gaborone, Botswana

Botswana has recently concluded a National Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) Risk Assessment, marking an essential milestone in its efforts to strengthen its financial crime prevention systems.

International Obligation: Global Effort Against Financial Crimes

  • The Financial Action Task Force (FATF) adopted an international obligation in 2012 for all countries to undertake a National AML/CFT Risk Assessment.
  • Botswana sought help from the World Bank in 2014 to utilize the NRA Tool in conducting its assessment.
  • Over 70 countries have used or requested technical assistance and the NRA Tool for their respective assessments.

Elene Imnadze, World Bank Botswana Country Representative: Support During the NRA Workshop

  • The NRA tool brought valuable insights to Botswana’s risk assessment process.
  • The World Bank will continue to provide support in Botswana’s mission to become a leading African country in effectively addressing international obligations.

Threats and Vulnerabilities: Evaluating and Prioritizing Financial Crime Risks

Officials gathered data, information, and statistics to measure and prioritize Botswana’s main money laundering and terrorist financing risks.

Threats

  • Existing circumstances and systems that cannot be eliminated, such as criminal activities at the border or in Botswana’s financial system.

Vulnerabilities

  • The effectiveness of internal mitigation systems, such as the performance of customs and border control systems or the financial sector’s controls.

Identified Risks: Wildlife Poaching, Diamond Sector, Auto Theft, and Financial Crimes

  • Money laundering risks were identified based on data pointing to higher crime levels related to wildlife poaching, weaknesses in the diamond sector, auto theft, and financial crimes like tax evasion and corruption.
  • Inadequacies in national AML/CFT control systems were discovered in the legal frameworks and their implementation.

Elaina Gonsalves, Deputy Secretary for Economic and Finance Policy in the Ministry of Finance and Economic Development: Gratitude for World Bank’s Assistance

  • Botswana intends to strengthen its legal framework and first line of defense against money laundering and terrorist financing moving forward.
  • The risks and threats identified through the NRA process will guide officials in applying appropriate measures to combat money laundering, terrorist financing, and underlying criminal activities including corruption.
  • Demonstrates Botswana’s commitment to complying with international AML/CFT obligations based on various international treaties and conventions, outlined in the 40 FATF Recommendations. (http://www.fatf-gafi.org/publications/fatfrecommendations/documents/fatf-recommendations.html)