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Namibia’s Financial Intelligence Centre Cracks Down on Money Laundering, Terrorism Financing
WINDHOEK - The Namibian government has taken a significant step in combating money laundering, terrorism financing, and proliferation of weapons of mass destruction by acceding to the Convention on Combating the Financing of Proliferation of Weapons of Mass Destruction.
Virtual Assets: A Growing Concern
According to experts, virtual assets such as cryptocurrencies are a type of 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 amongst parties who choose to do so.
The Financial Intelligence Centre’s Response
The Financial Intelligence Centre (FIC) has issued a directive and guidance on Virtual Asset Service Providers (VASPs), which are any natural or legal person that conducts one or more of the following activities:
- Exchange between virtual assets and fiat currencies
- Transfer of virtual assets
- Safekeeping and administration of virtual assets
- Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset
The FIC has also defined VASPs as including persons who provide certain services within the VA value chain, such as:
- Exchange houses
- Agents
- Brokers
- Mixers
- Traders
- Virtual asset managers
- Persons facilitating the exchange of fiat currencies for any type of VA (and vice versa)
Combating Corruption
Corruption is another major concern for the government, which has defined it as soliciting or accepting any item of value to influence the actions of an official or other person in charge of a private or public legal duty. The FIC plays a crucial role in fighting corruption by receiving and analyzing data on suspicious transactions and sharing intelligence with law enforcement agencies and the Office of the Prosecutor General.
Measures to Prevent Money Laundering
Accountable institutions are prohibited from sharing the contents of their Suspicious Transaction Reports (STRs) with their financial groups, and must obtain certified copies of identification information from their clients.
Protecting Namibia’s Financial System
The government’s efforts to combat money laundering, terrorism financing, and proliferation of weapons of mass destruction are aimed at protecting the country’s financial system and preventing the misuse of its financial institutions. The FIC’s analytical work is critical in identifying proceeds of predicate offences and sharing intelligence with law enforcement agencies to prevent these illegal activities.
By taking a proactive approach to combating these illicit activities, Namibia can ensure that its financial system remains secure and trustworthy for both domestic and international transactions.