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FIC Directives: Enhanced Sanctions Screening for PEPs and UBOs
The Financial Intelligence Centre (FIC) has issued a directive to strengthen sanctions screening measures for institutions in Namibia, particularly those dealing with Politically Exposed Persons (PEPs) and Owners of Beneficial Ownership (UBOs). The move aims to reduce the risk of money laundering and terrorist financing.
Escalation of Risk
Institutions must escalate their risk assessments for transactions involving PEPs and UBOs. These individuals may be more susceptible to influence or control by external factors, increasing the risk of financial crimes.
Key Risks
- Influence or control by external factors
- Increased susceptibility to financial crimes
Sanctions Screening
Institutions are required to implement robust sanctions screening processes to detect and report suspicious transactions. This includes:
- Monitoring transactions related to PEPs and UBOs
- Monitoring transactions involving countries subject to international sanctions
Key Performance Indicators (KPIs)
To ensure effective risk management, institutions must establish KPIs for sanctions screening alerts and their management. These metrics will guide resource allocation and system adjustments to prevent excessive returns (false positives).
Positive Matches
When a close match is suspected or detected, institutions must:
- Investigate promptly
- Report any findings to the relevant authorities without delay
Responsibilities
- Institutions are responsible for demonstrating compliance with the Financial Intelligence Act (FIA) and Prevention of Money Laundering and Terrorist Financing Act (PACFTP)
- The FIC may conduct automated assessments or reviews to verify compliance
Non-Compliance
Failure to comply with this directive will result in enforcement measures as per the FIA. Non-adherence by institutions exposes the country to sanctions and negatively impacts the financial system.
Consequences of Non-Compliance
- Enforcement measures as per the FIA
- Exposure of the country to sanctions
- Negative impact on the financial system
Commencement
This directive comes into effect on March 2, 2022, and will be published on the FIC website (www.fic.na) under Publications.
Publication
The document will be available on the FIC website under Publications starting from March 2, 2022.
General
The document contains statements of policy reflecting the FIC’s administration of legislation. The information is intended to provide a summary of these matters and is not intended to be comprehensive. The directive shall be reviewed as needed.
Review and Updates
The directive will be reviewed and updated as necessary to ensure compliance with changing regulations and guidelines.