Namibia on the Brink: Unresolved Money Laundering Issues Threaten International Reputation

Namibia, a Southern African nation, has made significant strides towards compliance with anti-money laundering (AML) global standards. However, the country faces potential consequences for unresolved challenges that have raised international concerns.

Progress Towards Compliance

According to Iipumbu Shiimi, Namibia’s Minister of Finance and Public Enterprises, Namibia has addressed 59 out of 72 action items reported by Africa-Press - Namibia.

- 59 out of 72 action items have been addressed

Critical Juncture

The Minister acknowledged Namibia’s standing at a critical juncture and the potential consequences of not fully addressing the remaining 13 issues. These issues have raised concerns from the international community, specifically the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG) and the Financial Action Task Force (FATF).

- Namibia faces potential consequences for unresolved issues
- ESAAMLG and FATF have raised international concerns

Vulnerabilities Identified

The FATF identified vulnerabilities in Namibia’s financial and legal frameworks that were further exacerbated by high-profile corruption scandals, such as Fishrot, VAT frauds, and SME Bank fraud.

- FATF identified vulnerabilities in Namibia's financial and legal frameworks
- High-profile corruption scandals worsened the situation

The FATF’s Mutual Evaluation Report (MER) revealed that a considerable portion of illicit financial flows were channelled through banks, unit trusts, asset management services, and certain non-financial businesses and professions, including legal and real estate services.

- Illicit financial flows were channelled through various sectors
- Legal and real estate services were part of the problem

Response to Recommendations

To address the FATF’s recommendations, Namibia enacted four new laws and amended nine existing ones by August 2023. The government also established a dedicated Project Team to oversee the implementation of the legal and policy frameworks. Namibia submitted a progress report to the FATF ICRG towards the end of 2023, and there was a follow-up engagement in Abu Dhabi in January 2024.

- Namibia enacted new laws and amended existing ones
- Established a dedicated Project Team
- Submitted progress report and had a follow-up engagement

Technical Compliance and Remaining Issues

Preliminary results from the Abu Dhabi meeting indicated that Namibia has satisfied the technical compliance test and made significant progress in addressing the effectiveness of its anti-money laundering measures. However, remaining action items might jeopardize Namibia’s standing on the FATF’s list of jurisdictions under increased monitoring.

- Namibia has made progress in addressing technical compliance issues
- Remaining issues might affect Namibia's standing on FATF's list

Commitment to Full Compliance

Minister Shiimi assured Namibia’s determination to fortify its financial integrity and fight money laundering, despite the challenges ahead. Namibia will finalize an Action Plan with the FATF ICRG to tackle the remaining issues.

- Namibia remains committed to full compliance
- Will finalize an Action Plan to address remaining issues

Stay tuned to Africa-Press for further analysis and news on this developing story.