Financial Crime World

Title: Botswana Completes National Anti-Money Laundering and Counter Financing of Terrorism Risk Assessment with World Bank Support

Botswana Successfully Completes AML/CFT Risk Assessment

GABORONE - Botswana has completed its National Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Risk Assessment, becoming the latest African nation to comply with an international obligation set by the Financial Action Task Force (FATF). The assessment was supported by the World Bank, resulting in the adoption of a comprehensive report and action plan.

Background

  • The requirement for countries to conduct a National AML/CFT Risk Assessment was adopted by the FATF in 2012.
  • Before 2012, no nation had ever undertaken such an assessment, leading the World Bank’s Financial Integrity Unit to develop a National AML/CFT Risk Assessment Tool in 2014.
  • Botswana was one of the countries to seek the World Bank Group’s assistance in conducting the assessment.

Workshop and Key Findings

  • More than 50 officials, including AML/CFT experts, participated in the three-day workshop.
  • Threats and vulnerabilities to Botswana’s financial system were evaluated using the World Bank’s National Risk Assessment tool.
  • Key money laundering risks identified during the workshop included wildlife poaching, weaknesses in Botswana’s diamond sector, auto theft, financial crimes like tax evasion and corruption, legal framework inadequacies, and poor implementation of AML/CFT controls.

International Obligations and Guidelines

  • The FATF’s 40 Recommendations Against Money Laundering/Terrorist Financing provide a framework for combating money laundering and terrorist financing.
  • These recommendations can be accessed at: FATF Recommendations

Next Steps

  • Elaina Gonsalves, Deputy Secretary for Economic and Finance Policy in the Ministry of Finance and Economic Development, expressed gratitude for the World Bank’s assistance throughout the project.
  • Botswana hopes to strengthen its legal framework as its first line of defense against money laundering and terrorist financing.
  • Identified risks and threats will guide officials in fortifying their systems to combat money laundering, terrorist financing, and related crimes in accordance with international AML/CFT obligations.