Financial Crime World

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Namibia Fails to Meet Anti-Money Laundering and Combating the Financing of Terrorism Requirements

Windhoek, Namibia - A recent report has highlighted several shortcomings in Namibia’s efforts to combat money laundering and terrorist financing.

Shortcomings in AML/CFT Implementation

According to the report, Namibia must still:

  • Establish supervisory bodies for accountable institutions that do not have them
  • Provide regulatory powers to administrative supervisory bodies responsible for ensuring compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) standards
  • Develop a comprehensive framework outlining the functionality of multi-disciplinary task forces tasked with investigating and prosecuting complex financial crimes
  • Adopt legislative instruments creating regulatory bodies for accountable institutions without them and providing regulatory powers to supervisory bodies

Effective Coordination of National AML/CFT Programmes

Namibia has made some progress in this area, having established a dedicated national task force called the Anti-Money Launderling Advisory Council (AMLAC). The council is responsible for coordinating the national AML/CFT strategy and facilitating liaison between ministries and agencies with responsibilities in this area. However, the report notes that Namibia must still:

  • Ensure effective coordination of its national AML/CFT programmes by allocating sufficient resources to support the work of the AMLAC and its technical committee

Effective Training on AML/CFT

The Bank of Namibia has conducted training for staff of financial institutions, regulatory bodies, and law enforcement agencies. However, the report states that Namibia must still:

  • Devise training programmes and conduct AML/CFT training for law enforcement agencies, judges, and magistrates tasked with adjudicating AML/CFT cases

Effective Allocation of Sufficient Resources

Government has allocated a budget to the Bank of Namibia for its Financial Intelligence Centre operations. However, the report notes that Namibia must still:

  • Ensure sufficient resources are provided by Government to support the enforcement of AML/CFT laws and regulations
  • Recruit high-level professional and non-professional staff to investigate and prosecute money laundering and terrorist financing offences and recover the proceeds of financial crimes
  • Prepare a costing analysis to inform Government on the resources needed to implement the AML/CFT programme successfully

Conclusion

Namibia’s efforts to combat money laundering and terrorist financing are still falling short of international standards. The country must take urgent action to address these shortcomings and ensure that its laws and regulations are effectively enforced. Failure to do so could result in reputational damage and financial losses for the country.