BOTSWANA TAKES STEPS TO COMBAT TERRORIST FINANCING RISKS
Efforts to Mitigate Money Laundering and Terrorist Financing Risks
Gaborone - Botswana is making concerted efforts to assess and mitigate risks associated with money laundering and terrorist financing. This was highlighted by a senior government official during a workshop to launch the country’s first national risk assessment (NRA) for money laundering and terrorist financing.
Importance of National Risk Assessment (NRA)
The NRA is a critical process that involves identifying and evaluating risks associated with money laundering and terrorist financing, as well as analyzing the main sources and drivers of these risks. The findings will inform policy makers on where to allocate resources to mitigate these risks based on a risk-based approach.
Key Features of the NRA
- Identifies and evaluates risks associated with money laundering and terrorist financing
- Analyzes the main sources and drivers of these risks
- Informs policy makers on resource allocation for mitigation
International Recommendations and Requirements
The NRA is part of efforts to implement Recommendation 1 of the 40 Financial Action Task Force (FATF) recommendations, which require countries to identify, assess, and understand money laundering and terrorist financing risks within their jurisdiction.
Background on FATF Recommendations
- The FATF has 40 recommendations for anti-money laundering and counter-terrorist financing
- Recommendation 1 requires countries to identify, assess, and understand money laundering and terrorist financing risks
Botswana’s Anti-Money Laundering and Counter-Terrorist Financing Regime
Botswana’s regime has been in place since 2003, but the country needs to review its framework regularly to ensure it is aligned with international standards. The new laws passed by Parliament last year are a step in this direction.
World Bank’s Assistance
The World Bank has assisted Botswana in developing its anti-money laundering and counter-terrorist financing framework over the years. The NRA project is seen as a critical step in enhancing the country’s financial security and competitiveness.
Benefits of the NRA Project
- Enhances financial security
- Improves competitiveness
- Mitigates money laundering and terrorist financing risks
Conclusion
Botswana aims to become a secure country for foreign direct investment by mitigating money laundering and terrorist financing risks. The NRA project is a critical step in achieving this goal, and the World Bank’s expertise and assistance have been invaluable in making this project a reality.
References
- FATF (n.d.). Recommendations.
- World Bank (2007). Mutual Evaluation of Botswana.