Namibia’s Financial Intelligence Centre Cracks Down on Money Laundering and Corruption
Regulating Virtual Asset Service Providers
The Financial Intelligence Centre (FIC) has issued a directive aimed at regulating Virtual Asset Service Providers (VASPs) in Namibia, a move seen as crucial in combating money laundering, terrorism financing, and proliferation financing.
What are VASPs?
According to the FIC’s directive, VASPs include individuals and entities that provide various services within the VA value chain, including:
- Cryptocurrency exchanges
- Brokers
- Traders
- Mixers
- And others
These services include activities such as:
- Exchange 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
Combating Corruption
In addition to regulating VASPs, the FIC has highlighted the importance of combating corruption in Namibia. Corruption can take many forms, including:
- Bribery
- Kickbacks
- Illegal gratuities
- Collusion
The FIC plays a crucial role in fighting corruption by receiving and analyzing data on suspicious transactions, which is used to identify proceeds of predicate offences.
Preventing Money Laundering and Terrorist Financing
To prevent money laundering and terrorist financing, accountable institutions are required to:
- Obtain certified copies of identification information from their clients
- Not share Suspicious Transaction Reports (STRs) with their financial group
Key Takeaways
- The Financial Intelligence Centre has issued a directive regulating Virtual Asset Service Providers in Namibia.
- VASPs include individuals and entities that provide various services within the VA value chain.
- Corruption can take many forms, including bribery, kickbacks, illegal gratuities, and collusion.
- The FIC plays a crucial role in fighting corruption by receiving and analyzing data on suspicious transactions.
- Accountable institutions are required to obtain certified copies of identification information from their clients.
- STRs cannot be shared with financial groups.
About the Financial Intelligence Centre
The Financial Intelligence Centre (FIC) is a statutory body responsible for coordinating Namibia’s Anti-Money Laundering, Combating the Financing of Terrorism and Proliferation (AML/CT/CPF) framework. The FIC works closely with regulatory bodies, law enforcement agencies, and other stakeholders to prevent money laundering, terrorism financing, and proliferation financing.
By regulating VASPs and combating corruption, the FIC is ensuring that Namibia maintains its reputation as a stable and secure financial hub.