Financial Crime and Corruption in Botswana: A Growing Concern
Botswana has recently completed a National Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Risk Assessment, a move that experts say is crucial in combating financial crime and corruption in the country.
Risk Factors Identified
The assessment, supported by the World Bank, identified several risks facing Botswana, including:
- Criminal activity linked to wildlife poaching
- Weak controls in the diamond sector
- Auto theft
- Financial crimes such as tax evasion and corruption
The report also highlighted weaknesses in national AML/CFT control systems, including legal frameworks and implementation.
National Risk Assessment (NRA) Process
The NRA was conducted using a tool developed by the World Bank’s Financial Integrity Unit to aid countries in assessing their AML/CFT risks. Botswana is the 11th country in Africa to undertake such an assessment, marking a significant step towards strengthening its financial systems and complying with international obligations.
Vulnerabilities and Recommendations
The assessment identified several vulnerabilities that need to be addressed, including:
- Weaknesses in customs and border control systems
- Controls in the financial sector
- Prioritizing risks and targeting resources effectively to mitigate them
The report will assist officials in strengthening country systems and applying appropriate control measures to fight money laundering, terrorist financing, and related underlying criminal activities.
International Support
“We appreciate the assistance we have received from the World Bank throughout the duration of the National Risk Assessment project,” said Elaina Gonsalves, Deputy Secretary for economic and finance policy in the Ministry of Finance and Economic Development. “We are also grateful for the NRA working groups and the selflessness and enthusiasm they exhibited during the course of the project.”
The World Bank has offered to continue supporting Botswana in its efforts to combat financial crime and corruption.
Moving Forward
As Botswana moves forward with implementing the recommendations of the National AML/CFT Risk Assessment, it is clear that the country faces significant challenges in combating financial crime and corruption. However, with the support of international partners like the World Bank, Botswana has a unique opportunity to strengthen its financial systems and build a more stable and prosperous future for its citizens.
“This system, once fully operational, will stem illicit financing flows (IFFs) and contribute to stronger economic development, shared prosperity, and help reduce poverty,” said Elene Imnadze, World Bank Botswana Country Representative.