Financial Intelligence Center Warns on Virtual Assets and Corruption
Windhoek, Namibia - The Financial Intelligence Center (FIC) has issued a warning on the increasing use of virtual assets and corruption in the country.
The FIC is the Anti-Money Laundering, Combating the Financing of Terrorism and Proliferation (AML/ CFT/CPF) regulator for Virtual Asset Service Providers (VASPs). According to the FIC, a virtual asset is a cryptographic or digital representation of value that can be used for payment or investment purposes. These assets do not meet the criteria for consideration as fiat currency in Namibia but can be readily exchanged for funds, goods, or other virtual assets among parties who choose to do so.
What are Virtual Asset Service Providers (VASPs)?
VASPs are service providers that enable exchanges between virtual assets and fiat currencies, transfer of virtual assets, safekeeping and administration of virtual assets, participation in financial services related to an issuer’s offer and sale of a virtual asset, and more. Examples of VASPs include exchange houses, agents, brokers, mixers, traders, virtual asset managers, and persons providing trade, clearance, and settlement services for virtual assets.
FIC Issues Directive and Guidance on VASPs
The FIC has issued a directive and guidance on VASPs, requiring them to implement anti-money laundering (AML) and combating the financing of terrorism (CFT) measures to prevent their use in corrupt activities. The directive defines VASPs as accountable institutions that are required to report suspicious transactions to the FIC.
Combating Corruption
Corruption is a predicate offence, and the FIC plays a crucial role in fighting it by receiving and analyzing data used to identify proceeds of predicate offences to money laundering, terrorist financing, and proliferation (ML/TF/PF). The FIC’s analytical work provides intelligence disclosures to competent authorities, including the Anti-Corruption Commission (ACC), for use in investigations, prosecutions, and asset forfeiture activities.
Accountable Institutions Must Comply
Accountable institutions are not allowed to share suspicious transaction report (STR) information with their financial group. They must obtain certified copies of identification information from their clients.
Warning Signs of Corruption
Corruption can take many forms, including bribery, kickbacks, illegal gratuities, and collusion. The center is working closely with relevant stakeholders, including regulatory and supervisory bodies, private sector entities, law enforcement authorities, and the Office of the Prosecutor General to combat money laundering, terrorist financing, proliferation, and corruption.
Public Urged to Report Suspicious Transactions
The public is urged to be vigilant and report any suspicious transactions or activities to the FIC. The center can be reached through its hotline number or email address.
Contact Information:
- Hotline Number: [insert number]
- Email Address: [insert email]