Financial Crime World

Financial Crime Reporting Requirements in Namibia: A Must-Know for Organizations

In an effort to combat money laundering, terrorist financing, and other illicit activities, the Financial Intelligence Act 13 of 2012 (FIA) has established strict regulations for financial institutions in Namibia. As part of this legislation, Accountable Institutions (AIs) are required to comply with a set of general obligations designed to prevent and detect financial crimes.

Understanding General Obligations

To ensure the integrity of the financial system, AIs must adhere to the following 15 key obligations:

Risk Assessment

  • Conduct regular risk assessments to identify and mitigate Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) risks within the institution.

Customer Due Diligence

  • Perform robust Customer Due Diligence procedures on all customers, including verifying and identifying clients when concluding a single transaction or establishing a business relationship.

Record-Keeping

  • Maintain accurate and up-to-date records of client identification information, transactional records, and suspicious transactions reports submitted to the Financial Intelligence Centre (FIC).

Reporting Suspicious Transactions and Activities

  • Report any suspicious transactions and activities to the FIC promptly, without delay, but not later than three days.

Training and Awareness

  • Provide regular training on AML and CTF for employees of AIs, ensuring they are aware of their responsibilities in identifying and reporting suspicious activities.

Internal Controls and Policies

  • Establish and maintain internal controls and policies to prevent money laundering and terrorist financing.

Appointment of Designated Compliance Officer

  • Appoint a designated compliance officer responsible for overseeing AML and CTF measures.

UNSC Sanctions Screening

  • Screen customers and transactions against government-issued sanctions lists to ensure they are not dealing with sanctioned individuals or entities.

Ongoing Monitoring

  • Continuously monitor customer transactions to identify any unusual or suspicious behavior, implementing automated monitoring systems where applicable.

Reporting Large Cash Transactions

  • Report all cash transactions above NAD 99,999.99 threshold to the FIC as required by regulations.

Targeted Financial Sanctions

  • Screen clients against UNSC sanction lists and freeze assets of matching clients in possession, prohibit services, and report to the FIC without delay.

Prominent Influential Persons (PIPs)

  • Outline deliberate mechanisms for identifying PIPs and subjecting them to required controls, including enhanced due diligence.

Independent Audit Functions

  • Develop an audit function to monitor compliance with internal rules and AML/CFT legal framework.

Designation of Compliance Officers at Management Level

  • Designate compliance officers at management level.

Registration with the FIC

  • Register prescribed particulars with the FIC for supervising compliance with the FIA.

Conclusion

Compliance with these general obligations is crucial for AIs to safeguard the financial system’s integrity and prevent money laundering, terrorist financing, and other illicit activities. Failure to comply can result in severe legal and financial consequences. Therefore, it is essential that organizations remain diligent in their efforts to combat financial crime while staying up-to-date with evolving regulations and best practices.