Financial Crime World

Botswana’s Financial Crime Problem: A Growing Concern for Society

Gaborone, March 14, 2017

Botswana has recently completed a comprehensive National Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Risk Assessment, marking a significant milestone in the country’s efforts to combat financial crime. The assessment, supported by the World Bank, highlights the growing threat posed by money laundering and terrorist financing to Botswana’s economy and society.

Key Findings

  • The National Risk Assessment (NRA) identified various risks facing Botswana, including:
    • Criminality linked to wildlife poaching
    • Weak controls in the diamond sector
    • Auto theft
    • Financial crimes such as tax evasion and corruption
  • The assessment also highlighted weaknesses in national AML/CFT control systems, particularly in legal frameworks and implementation

World Bank’s National AML/CFT Risk Assessment Tool

The World Bank’s National AML/CFT Risk Assessment Tool played a crucial role in helping Botswana complete the assessment. This tool has been used by over 40 countries to date, with 30 more countries currently undertaking similar assessments.

Mitigating Risks and Threats

The results of the NRA will inform the development of targeted measures to mitigate the identified risks and threats. Officials are working to strengthen country systems and apply appropriate control measures to combat money laundering, terrorist financing, and related criminal activities.

Deputy Secretary’s Praise for World Bank Assistance

Botswana’s Deputy Secretary for Economic and Finance Policy, Elaina Gonsalves, praised the World Bank’s assistance throughout the project, saying that it has provided valuable insights into how to assess actual money laundering and terrorist financing risks using clear data. The country is now better equipped to meet its international AML/CFT obligations and reduce the threat of financial crime.

Impact on Botswana’s Society

The impact of financial crime on Botswana’s society cannot be overstated. Illicit financial flows (IFFs) undermine economic development, perpetuate poverty, and erode trust in institutions. By strengthening its AML/CFT controls, Botswana is taking a crucial step towards reducing these harmful effects and promoting a safer and more prosperous future for its citizens.

Conclusion

Botswana’s efforts to combat financial crime are essential to ensuring the country’s economic stability and security. The completion of this comprehensive risk assessment marks an important milestone in this journey, and we look forward to seeing the positive impact it will have on Botswana’s society.