Financial Crime World

Namibia’s Revised Threat and Vulnerability Assessments Reveal Increased Risk Exposure

In a latest development, Namibia has revised its threat and vulnerability assessments in the fight against terrorism financing (TF), revealing an increased risk exposure to TF threats.

Threat Assessment

According to the 2023 National Risk Assessment (NRA) Update, Namibia’s TF vulnerability level has been revised to 0.7-0.8 or 70%-80%, indicating a Medium High TF vulnerability level due to national combating effectiveness being only between 20% and 30%.

  • Domestic TF threats were rated Low (0.3 or 30%)
  • Foreign TF Threats were rated Medium (0.5 or 50%)
  • Overall conservative TF threat rating: Medium (a score of 0.5 or 50%)

Vulnerability Assessment

Vulnerability levels in risk assessments speak to the effectiveness of national combating efforts against TF. The revised assessment reveals an increased risk exposure due to various factors, including:

  • Lack of resources
  • Inadequate legislation
  • Poor coordination among relevant authorities

Importance of Continued Monitoring and Assessments

The article highlights the importance of continued monitoring and assessments of TF risks, as well as the need for institutions to appreciate the considerations informing TF risk conclusions.

Government Official’s Statement

“A senior government official emphasized that ‘Namibia must assess and continue to monitor its TF risks regardless of the absence of known threats. This approach should be similarly adopted at institutional level.’”

Four Stages of Terrorism Financing Process

The country’s TF process organically involves four stages:

  • Raising funds and other assets
  • Moving them
  • Storing or using them
  • These stages are not sequential nor linked to a specific known terrorism-related activity but serve as a general guide through which to appreciate TF.

Expert Warning

Experts warn that jurisdictions without active terrorism incidents may still need to consider the likelihood of terrorist funds being raised domestically and transferred to areas with active terrorism.

Revised Assessment’s Impact

The revised assessment is expected to inform policy decisions and strategies aimed at mitigating TF risks in Namibia.