Botswana Takes Steps to Mitigate Terrorist Financing Risks

Establishing a Center for Combating Illicit Financial Flows

The Government of Botswana is taking significant strides to strengthen its anti-money laundering and counter-terrorism financing measures. As part of these efforts, a center for combating illicit financial flows is being established at the University of Botswana.

Training and Capacity Building

• The center will provide comprehensive training to all stakeholders, including government officials, law enforcement agencies, and private sector institutions.
• It will play a crucial role in building capacity ahead of the next mutual evaluation by the Financial Action Task Force (FATF) in January 2027.

Botswana’s Risk Assessment and Action Plan

Last year, the country conducted a national risk assessment which revealed:

• Medium-high risks of money laundering
• Medium risks of terrorist financing

In response to these findings, the government has developed an action plan with implementation scheduled for this financial year. This includes measures to mitigate the identified risks and strengthen Botswana’s anti-money laundering and counter-terrorism financing regulations.

Avoiding Grey-Listing by the FATF

Botswana seeks to avoid being grey-listed by the FATF again after making improvements to its money laundering regulations in 2021. Finance Minister Peggy Serame emphasized that:

• The country remains committed to curbing financial crime, including money laundering and financing terrorism and proliferation.
• Botswana’s aim is to ensure that its financial system remains transparent and secure.

The Center for Combating Illicit Financial Flows

The establishment of the center is a significant step towards achieving this goal. It will work closely with all stakeholders to:

• Identify risks associated with money laundering and terrorist financing
• Assess these risks and develop strategies to mitigate them

Recognition from the FATF

Botswana’s efforts to strengthen its anti-money laundering measures have been recognized by the FATF, which has commended the country’s progress in addressing shortcomings in its financial regulation. However, the government remains committed to doing more to ensure that Botswana’s financial system remains robust and secure.