NAMFISA Enhances AML/CFT Supervision to Ensure Compliance
The Namibia Financial Institutions Supervisory Authority (NAMFISA) has introduced several measures to ensure that financial institutions under its supervision comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations.
Fit and Proper Policy
As part of these efforts, NAMFISA has developed a Fit and Proper Policy to ensure that key personnel in financial institutions are vetted and deemed suitable for their roles. The policy requires individuals to meet certain standards and criteria before being appointed to management positions.
Regular Assessments and Risk-Based Inspections
NAMFISA conducts regular assessments of financial institutions to identify potential risks and vulnerabilities. These assessments take into account various factors, including:
- The institution’s risk profile
- Business activities
- Compliance with AML/CFT regulations
The authority also performs risk-based on-site and off-site inspections to verify whether financial institutions are adequately implementing preventative measures consistent with AML/CFT regulations.
Inspection Frequency
According to a table released by NAMFISA, the frequency of these inspections is determined by the institution’s ML/TF/PF risk profile and systemic risk:
- Financial institutions classified as high-risk will be inspected annually
- Those classified as medium-high risk will be inspected every two years
- Medium-low risk institutions will be inspected every three years
- Low-risk institutions will be inspected every two years or as needed
Typologies and Directives
NAMFISA has also developed typologies on the manifestation of money laundering, terrorist financing, and proliferation of weapons of mass destruction in various sectors under its supervision. This is aimed at promoting an understanding of these activities and ensuring that financial institutions are able to identify and report suspicious transactions.
The authority has also empowered itself to issue directives to financial institutions to perform acts necessary to meet obligations imposed by the Financial Institutions Act (FIA).
Publications and Input
NAMFISA’s AML and Inspections department will provide input/articles for publication at its own accord or upon request by the Consumer Education Unit.
By implementing these measures, NAMFISA is committed to ensuring that financial institutions under its supervision comply with AML/CFT regulations and contribute to a safer financial system.