Financial Crime World

Establishment of the Financial Intelligence Centre: A Significant Step Forward in Combating Money Laundering and Terrorism Financing

The Namibian government has taken a major step forward in strengthening efforts against money laundering and terrorism financing by establishing a new financial intelligence centre. The centre, which is operationally independent and autonomous, will be responsible for administering the country’s anti-money laundering laws.

Objectives of the Centre

According to the Act establishing the Centre, its primary objectives are to:

  • Combat money laundering
  • Underlying unlawful activities
  • Financing of terrorism or proliferation activities

The Centre will achieve these objectives in collaboration with other law enforcement agencies.

Powers of the Centre

The Centre has been granted extensive powers to achieve its objectives, including:

  • Collection and analysis of reports and information from persons, institutions, government offices, and foreign financial intelligence units.
  • Issuance of guidelines, directives, and notices to institutions to ensure compliance with anti-money laundering laws.
  • Engagement in lawful activities aimed at promoting its objectives.

Governance Structure

The Centre’s Director will be appointed by the Minister, upon recommendation by the Board, after a thorough security screening investigation has been conducted. The Director will hold office for a term of five years, which may be renewed, and will be responsible for the day-to-day operations of the Centre.

Administrative Autonomy

In addition to its powers, the Centre will also have administrative autonomy, including:

  • Power to determine its own staff establishment
  • Appointment of employees
  • Engagement in lawful activities aimed at promoting its objectives

Key Provisions of the Act

  • Establishment of the Financial Intelligence Centre as an autonomous body
  • Objectives: combat money laundering, underlying unlawful activities, and financing of terrorism or proliferation activities
  • Powers: collection and analysis of reports and information, issuance of guidelines and notices, and engagement in lawful activities
  • Appointment of Director by Minister, upon recommendation by Board, after security screening investigation
  • Administrative autonomy, including power to determine staff establishment and appoint employees

Penal Provisions

A person who unduly influences or interferes with the Centre in exercising its powers and performing its functions may be fined up to N$100 million or imprisoned for up to 30 years.

This article is based on a draft bill establishing the Financial Intelligence Centre in Namibia. The establishment of this centre is a significant step forward in strengthening the country’s financial system and protecting it from criminal activities.