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Beneficial Ownership Transparency in Namibia: Government’s Approach and Expectations

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Promoting Transparency and Fighting Financial Crime

The Namibian government has introduced beneficial ownership requirements for all legal entities operating within the country. The Ministry of Industrialisation and Trade (MIT) and the Business Registration and Licensing Authority (BRLA), also known as BIPA, have been working together to ensure compliance with these regulations.

Background

The introduction of beneficial ownership requirements in Namibia represents a significant step towards promoting transparency and fighting financial crime. By complying with their filing obligations, companies and close corporations can contribute to a more transparent and secure business environment in the country.

Current Status

As of June 30, 2024, less than 30% (64,356 entities out of 221,338) have submitted their beneficial ownership information. The Financial Action Task Force (FATF) requires Namibia to report no less than 90% compliance by May 2025.

Key Statistics:

  • Entities submitted beneficial ownership information: 64,356
  • Total entities registered in Namibia: 221,338
  • Compliance rate as of June 30, 2024: Less than 30%

Government’s Approach

The government has adopted a measured approach, focusing on education and awareness initiatives rather than penalties alone. BIPA has held public engagements, issued notices via email and SMS, and is continuing its public education campaign.

Education and Awareness Initiatives:

  • Public engagements: Regular meetings with businesses to educate them about the requirements
  • Notices via email and SMS: Reminders sent to entities to file their beneficial ownership information
  • Public education campaign: Ongoing campaign to raise awareness among businesses and stakeholders

Penalties

Despite the government’s efforts to promote compliance through education, some businesses have expressed concerns about the penalties imposed for non-compliance. A total of 127,240 entities have been sanctioned through penalties as of May 2024.

Entities Sanctioned with Penalties:

  • Total entities sanctioned: 127,240
  • Reasons for sanctions: Failure to file beneficial ownership information

Government’s Decision

In response to these concerns, BIPA has resolved to exercise its discretion not to impose penalties for the next two months while focusing on public education campaigns. The government encourages businesses to file their beneficial ownership information with BIPA to increase national compliance.

Two-Month Reprieve:

  • No penalties will be imposed: For the next two months, BIPA will focus on education and awareness initiatives
  • Encouragement to file beneficial ownership information: Businesses are encouraged to file their information with BIPA to comply with regulations

Conclusion

The introduction of beneficial ownership requirements in Namibia is a significant step towards promoting transparency and combating financial crime. By working together, the government and businesses can create a more transparent and secure business environment for all stakeholders.

A Brighter Future:

  • Increased transparency: Beneficial ownership requirements promote transparency and accountability among businesses
  • Reduced risk of financial crime: Compliance with regulations helps to prevent financial crimes such as money laundering and terrorist financing
  • A safer business environment: The government and businesses can work together to create a more secure and stable business environment for all stakeholders