Financial Crime World

Botswana’s Financial Sanctions and Compliance Under Scrutiny

In its latest assessment, Botswana has been found to be largely compliant with the global standards for combating money laundering and terrorist financing.

Assessment Highlights

  • Botswana received a rating of “LC” or largely compliant in 22 out of the 40 recommendations made by the Financial Action Task Force (FATF).
  • The country implemented technical requirements effectively, including assessing risk and applying a risk-based approach to combating money laundering.
  • Good cooperation with other countries was observed in sharing financial intelligence and information.

Areas for Improvement

  • Botswana was found to be partially compliant in several recommendations, including:
    • Confiscation and provisional measures
    • Terrorist financing offence
    • Targeted financial sanctions related to terrorism and proliferation
  • The country needs to improve its regulation and supervision of financial institutions and designated non-financial businesses and professions (DNFBPs).
  • Transparency and beneficial ownership requirements for legal persons and arrangements also require enhancement.

Positive Reflection

  • Despite areas that require improvement, Botswana’s overall rating is a positive reflection of the country’s efforts in combating money laundering and terrorist financing.
  • The government has made significant progress in implementing the FATF Recommendations and has demonstrated a commitment to continuing to improve its compliance with international standards.

Recommendations for Improvement

  • Improve internal controls and foreign branches and subsidiaries.
  • Enhance reporting of suspicious transactions.
  • Strengthen tip-off and confidentiality requirements.
  • Continue to work with international partners to strengthen financial sanctions and compliance regime.

Government Response

  • Botswana’s authorities have welcomed the report and are committed to addressing the areas that require improvement.
  • The government has pledged to continue working with international partners to ensure that Botswana remains a safe and stable jurisdiction for international business and investment.