Financial Crime World

Building Societies Act Amended: Key Institutions Added

Strengthening Financial Sector and Protecting Depositors

The Namibian government has amended the Building Societies Act, expanding the list of institutions and bodies that can be designated as authorized deposit-taking entities. The changes aim to strengthen the country’s financial sector and ensure better protection for depositors.

Key Institutions Added to the List

• Building societies: Organizations that provide savings accounts, loans, and other financial services to their members. • Cooperatives: Member-owned businesses that operate on a not-for-profit basis, offering financial products and services to their member-owners. • Microfinance institutions: Specialized lenders that provide small loans and other financial services to low-income individuals and communities.

Enhanced Powers for the Bank of Namibia

The amended act grants the Bank of Namibia additional powers to investigate and regulate these institutions. The central bank can now:

  • Conduct searches and seizures at premises suspected of illegal banking activities
  • Question individuals involved in suspected illegal banking operations
  • Freeze banking accounts and retain funds pending further investigation
  • Suspend or close down businesses found to be operating illegally

Commitment to Stability and Integrity

The Bank of Namibia has emphasized the importance of these changes, stating that they will help to ensure the stability and integrity of the country’s financial system.

“We are committed to protecting depositors’ interests and ensuring that our banking system operates in a safe and sound manner,” said a bank spokesperson. “These amendments will enable us to better monitor and regulate the activities of building societies, cooperatives, and microfinance institutions, and prevent illegal banking practices.”

Effective Date

The amended Building Societies Act is expected to come into effect on [insert date], with the Bank of Namibia providing further guidance and support to affected institutions in the coming weeks.