Namibia Loses Over N$1 Billion to Fraudulent Transactions since 2018: BoN Reveals
=====================================================
A staggering amount of over N$1 billion has been lost to fraud related to clearing and customs transactions in Namibia since 2018, according to the National Technical Working Group (TWG) on Illicit Financial Flows (IFFs).
What are Illicit Financial Flows?
Illicit financial flows involve the cross-border movement of money that is illegal in its origin, transfer, or use. Such flows can have devastating effects on a country’s socio-political and economic stability, depleting foreign exchange reserves, diminishing tax revenues, and reducing government income.
The Problem in Namibia
According to the Bank of Namibia (BoN), IFFs have resulted in a significant loss of over N$1 billion since 2018. The TWG, comprising 14 member institutions, is tasked with collecting data and addressing tax and commercial malpractices, financial crimes, fraud, and corruption.
The Workshop
A three-day workshop was held by the TWG in collaboration with the United Nations Conference on Trade and Development (UNCTAD) to estimate the amount of IFFs into and out of Namibia. The goal is to inform policy measures to combat this scourge.
Key Takeaways
- IFFs have resulted in a loss of over N$1 billion since 2018
- Illicit financial flows can have devastating effects on a country’s socio-political and economic stability
- The TWG is working to collect data and address tax and commercial malpractices, financial crimes, fraud, and corruption
Call to Action
Penelao Kapenda, TWG chairperson on IFFs and BoN deputy director for exchange control, emphasized the importance of the fight against IFFs, urging members to seek assistance and be committed to nation-building.
Finance and public enterprises deputy minister Maureen Hinda-Mbuende acknowledged Namibia’s positive record of global connectivity but expressed concern about the extent to which trade is conducted in the country. She stressed that if taxes are not being paid on exports and imports, and financial oversight regulations are being breached, the country must intensify efforts to measure and combat IFFs.
Conclusion
The revelation highlights the need for intensified efforts to combat illicit financial flows in Namibia. The TWG’s work aims to provide a comprehensive understanding of the issue and inform policy measures to mitigate its effects on the country’s economy and stability.