Financial Crime World

Fighting Financial Crimes: A Look at Components and Ammunition

Namibia Accedes to Global Anti-Financial Crime Convention

In August 2004, Namibia acceded to the global anti-financial crime convention, committing to implement measures to combat money laundering, terrorism financing, and proliferation (ML/TF/PF). This effort aims to prevent the misuse of financial systems for illicit activities.

Understanding Virtual Assets

A virtual asset (VA) is a digital representation of value that can be used for payment or investment purposes. VAs do not meet the criteria for consideration as fiat currency in Namibia but can be exchanged for funds, goods, or other VAs among parties who choose to do so. Cryptocurrencies are an example of VAs.

Virtual Asset Service Providers

A virtual asset service provider (VASP) is any natural or legal person that conducts activities such as:

  • Exchanging virtual assets and fiat currencies
  • Transferring virtual assets
  • Safekeeping and administering virtual assets
  • Participating in financial services related to the issuance and sale of virtual assets

FIC Regulates VASPs

The Financial Intelligence Centre (FIC) regulates VASPs to prevent ML/TF/PF. The FIC issued a directive and guidance on VASPs, defining the activities that fall under this category and outlining measures to ensure compliance with anti-financial crime regulations.

Understanding Corruption

Corruption can be defined as:

  • The abuse of power for personal gain or benefit
  • Bribery
  • Kickbacks
  • Illegal gratuities
  • Collusion

The FIC plays a crucial role in identifying proceeds of predicate offences, including corruption, to prevent ML/TF/PF.

FIC’s Role in Fighting Corruption

The FIC works closely with relevant stakeholders, including:

  • Regulatory bodies
  • Private sector entities
  • Law enforcement authorities
  • The Office of the Prosecutor General

to combat corruption. The centre receives and analyzes data on suspicious transactions and provides intelligence to competent authorities, facilitating investigations, prosecutions, and asset forfeiture activities.

Accountable Institutions and STRs

Accountable institutions are prohibited from sharing the contents of their suspicious transaction reports (STRs) with:

  • Their financial group
  • Anyone else

This ensures that sensitive information remains confidential and is only shared with authorized entities for anti-financial crime purposes.

Certified Identification Information

Accountable and reporting institutions must obtain certified copies of identification information from their clients, including documents verified by:

  • A commissioner of oaths
  • A public notary

as per the Financial Intelligence Act.

By working together to prevent ML/TF/PF, Namibia aims to maintain a stable and secure financial system that promotes economic growth and development for its citizens.