Financial Crime World

Cabinet Committee Clears Revised Laws to Meet Anti-Money Laundering Standards

Namibia has taken a significant step towards aligning its laws with global anti-money laundering, terrorist financing, and proliferation financing standards after the Cabinet Committee on Legislation cleared 11 amendments and two new bills for submission to Parliament.

Background

The revised laws aim to address mutual evaluation findings related to Namibia’s Anti-Money Laundering and Combatting the Financing of Terrorism and Proliferation Framework (AML/ CFT/CPF), which was evaluated by the Eastern and Southern African Anti-Money Laundering Group in September 2022. The assessment identified areas that needed improvement, prompting the government to develop a National Action Plan to address these findings.

National Action Plan

To mitigate the risk of a targeted review or grey listing by the Financial Action Task Force (FATF), the Cabinet approved the National Action Plan in December 2022. The plan includes the proposed legislative changes and enhanced effectiveness measures by law enforcement agencies and other stakeholders to address the findings.

Proposed Legislative Changes

The revised laws aim to strengthen Namibia’s financial integrity ecosystem, which is critical for economic development and stability. The amendments and new bills target various areas, including:

  • Financial Intelligence Act
  • Prevention and Combating of Organised Crime Act
  • Prevention and Combating of Terrorist and Proliferation Activities Act
  • Criminal Procedure Act
  • Police Act
  • Extradition Act
  • International Cooperation in Criminal Matters Act
  • Companies Act
  • Close Corporations Act
  • Banking Institutions Act
  • Payment Systems Management Act
  • Trust Administration Bill
  • Virtual Assets and Initial Token Offering Services Bill

Implementation and Guidance

The AML/ CFT/CPF Council, chaired by Bank of Namibia Governor Johannes !Gawaxab, the Minister of Finance and Public Enterprises, and the Prime Minister of the Republic of Namibia, will continue to guide the implementation of the National Action Plan. The council has called on all relevant stakeholders to develop and implement action plans to ensure a smooth transition to the revised legal framework.

Next Steps

The revised laws are expected to enjoy priority in the next sitting of Parliament, enabling Namibia to meet its international obligations.