Botswana Combats Financial Crime Through Data Analysis and World Bank Assistance
National Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Risk Assessment Completed
Gaborone, Botswana - In a major milestone, Botswana has completed its National AML/ CFT Risk Assessment, becoming the eleventh country in Africa to undertake such an assessment. The World Bank supported the national risk assessment, which aimed to identify and prioritize the main money laundering and terrorist financing risks faced by Botswana.
Data Analysis and Risk Identification
The assessment involved over 50 officials from various ministries and agencies who collected and analyzed large amounts of data to measure threats and vulnerabilities. Threats refer to existing circumstances and systems that cannot be eliminated, such as illegal activities abroad and internal financial system weaknesses. Vulnerabilities are internal mitigation systems, including the effectiveness of customs and border control systems.
Key Findings
The results showed that Botswana faces risks linked to:
- Wildlife poaching
- Weak controls in the diamond sector
- Auto theft
- Financial crimes like tax evasion and corruption
- Weaknesses in national AML/CFT controls systems, including legal frameworks and implementation effectiveness
Compliance with International Obligations
Botswana’s completion of the National AML/ CFT Risk Assessment indicates compliance with an important international obligation, as required by the Financial Action Task Force (FATF). The World Bank’s National AML/ CFT Risk Assessment Tool has been used by over 40 countries to date, with many more countries seeking assistance and guidance.
Quotes
“We appreciate the support we received from the World Bank throughout this project,” said Elaina Gonsalves, Deputy Secretary for Economic and Finance Policy in the Ministry of Finance and Economic Development. “We hope to strengthen our legal framework, which is crucial in the fight against money laundering and terrorist financing.”
“We stand ready to support Botswana’s work and help it become a leading African country in effectively meeting international obligations,” said Elene Imnadze, World Bank Botswana Country Representative.
Conclusion
The identified risks and threats will help officials strengthen country systems and apply appropriate control measures to combat financial crime. The National AML/ CFT Risk Assessment process aims to stem illicit financing flows, contribute to stronger economic development, and reduce poverty.