Financial Crime World

KYC Requirements in Namibia: What You Need to Know

Introduction

The financial sector in Namibia has been working tirelessly to combat money laundering and terrorist financing activities, thanks to the implementation of the Financial Intelligence Act (FIA) of 2012. As part of these efforts, banks are required to adhere to strict Know Your Customer (KYC) regulations to prevent illicit funds from entering the system.

The Importance of KYC Requirements

Njeri Siska, Head of Anti-Money Laundering at Bank Windhoek, notes that KYC requirements may seem cumbersome but are essential in preventing financial crimes. “The primary objective of AML requirements is to report Suspicious Transactions and/or Activities Reports (STR/SARs) to enable law enforcement and prevent criminals from benefiting from their activities,” she explains.

Zero-Tolerance Policy for Corruption and Non-Compliance

Bank Windhoek, like other financial institutions in Namibia, has a zero-tolerance policy for corruption and non-compliance with the laws of Namibia. In fact, the latest statistical report from the Bank of Namibia’s Financial Intelligence Centre (FIC) shows that tax evasion remains the leading potential offense in all suspicious reports finalized.

What are Suspicious Transactions and Activities?

A transaction is considered suspicious when there is no match between the client’s profile (i.e., KYC information) and the transaction in question. This can include scenarios where a client’s source of funds does not align with the transaction or when identification documentation is not provided.

Some examples of suspicious transactions and activities include:

  • A large cash deposit without a clear explanation
  • Multiple transactions with no apparent link to legitimate business activities
  • Use of shell companies or nominee accounts

Reporting Suspicious Transactions and Activities

If you suspect any suspicious activity or transaction, it is your responsibility to report it to the FIC without delay. You can do this by:

  • Submitting an STR/SAR through the internet-based reporting system available on the FIC website (www.fic.na/goAML)
  • Completing the forms in Annexures 1 and 2 of the Regulations and sending them via facsimile or hand delivering them to the Centre

Confidentiality Protection

As a reporter, you are protected under Section 50(2) of the FIA, which guarantees confidentiality. The identity of a person who provides information and the information itself cannot be disclosed unless it is done to assist the FIC in their investigations.

Conclusion

By reporting suspicious transactions and activities, you play an essential role in preventing financial crimes and protecting Namibia’s economy from illicit activities. As Siska emphasizes, “The fight against financial crime is a responsibility for not only banks but for every citizen and resident of Namibia.”