Namibia’s Anti-Money Laundering Rules Under Scrutiny
A recent evaluation by the Financial Action Task Force (FATF) has revealed that Namibia’s anti-money laundering rules are not entirely effective. The country scored poorly in several areas, including national cooperation and coordination, confiscation and provisional measures, and international instruments.
Poor Performance in Key Areas
- National Cooperation and Coordination: The report noted a lack of effective communication and collaboration between different government agencies and stakeholders, hindering the effectiveness of anti-money laundering efforts.
- Confiscation and Provisional Measures: Namibia’s laws and regulations do not provide for sufficient powers to freeze or confiscate assets in cases where money laundering or terrorist financing is suspected.
- International Instruments: The country has not fully implemented all of the relevant international treaties and conventions.
Areas for Improvement
- Regulations and Supervision: The report highlighted the need for Namibia to improve its regulations and supervision, particularly with regards to designated non-financial businesses and professions (DNFBPs) such as real estate agents and lawyers.
- Customer Due Diligence and Record-Keeping Practices: While some progress has been made in these areas, there is still room for improvement.
Progress Made
Despite the weaknesses identified, the report did note that Namibia has made some progress in recent years. The country has:
- Established a financial intelligence unit
- Implemented measures to improve customer due diligence and record-keeping practices
Government Response
The government of Namibia has welcomed the FATF report and pledged to address the areas where it fell short. Finance Minister Calle Schlettwein stated that the government is committed to strengthening its anti-money laundering regime and will work to implement the recommendations made by the FATF.
Rating System
Namibia’s rating reflects the extent to which a country has implemented the technical requirements of the FATF Recommendations:
- C: compliant
- LC: largely compliant
- PC: partially compliant
- NC: non-compliant
The full report can be accessed on the FATF website.