Financial Crime World

Medium-High Risk of Money Laundering in Namibia’s Financial Sector

A recent assessment by the National Authority on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) has revealed that Namibia faces a medium-high risk of money laundering, with the overall national AML/CFT system rated as “medium high”.

Key Vulnerabilities in the Financial Sector

  • Inadequate capacity among financial crime investigators, asset forfeiture investigators, and financial crime prosecutors
  • Lacking domestic cooperation in investigating and prosecuting money laundering (ML) cases
  • Weak legal framework for AML/CFT, with no anti-terrorism legislation in place and weaknesses within the Financial Intelligence Act (FIA)

Inability to Combat Money Laundering Cases

  • Authorities unable to effectively combat ML cases that are detected or reported
  • No convictions have been secured for ML offenses
  • Only a limited number of cases have been investigated and presented for prosecution

AML/CFT Control Measures

  • Inadequate control measures in the financial sector, particularly in the banking and capital markets sectors
  • Sector vulnerable to placement and layering of illicit proceeds through transactions
  • Movement of illicit proceeds likely to pass through Banking sector (including Nampost Savings Bank) and Capital Markets sector at some point during the layering phase

Key Area of Concern: Property Sector

  • Increased risk of ML activities taking place, particularly at the placement and layering phase
  • Investors from around the world acquiring properties in Namibia
  • Boom in property sector has led to an increased risk of ML activities

Recommendations

  • Financial institutions should strengthen their AML/CFT controls and improve cooperation with law enforcement agencies
  • Government should implement measures to enhance domestic cooperation in investigating and prosecuting ML cases
  • Strengthen legal framework for AML/CFT

Warning to Businesses

  • Be vigilant in anti-money laundering efforts
  • Report any suspicious transactions or activities to the relevant authorities