Financial Crime World

Financial Crime Reporting Guidelines Crucial for Namibia’s Financial Security

Namibia’s financial institutions must adhere to strict guidelines set forth by the Financial Intelligence Act 13 of 2012 as amended (FIA) to combat money laundering and terrorist financing. The FIA outlines several general obligations that Accountable Institutions (AIs) must comply with to ensure the integrity of the financial system.

Risk Assessment

  • AIs are required to conduct regular risk assessments to identify and mitigate Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) risks within their institutions.
  • This involves adjusting policies and procedures based on the assessed risks.

Customer Due Diligence

  • AIs must perform robust Customer Due Diligence (CDD) procedures on all customers, including verifying and identifying them when concluding a single transaction or establishing a business relationship.
  • Enhanced due diligence is required for high-risk customers, transactions, and PIPs.

Record-Keeping

  • AIs are obligated to maintain accurate and up-to-date records of client identification information, transactional records, and suspicious transactions reports submitted to the Financial Intelligence Centre (FIC).
  • All records must be kept for a period of five years from the date the transaction is concluded.

Reporting Suspicious Transactions and Activities

  • AIs are required to report any suspicious transactions and activities to the FIC promptly, but not later than three days.

Training and Awareness

  • Employees of AIs should receive regular training on anti-money laundering (AML) and counter-terrorist financing (CTF), as well as be aware of their responsibilities in identifying and reporting suspicious activities.

Internal Controls and Policies

  • AIs must establish and maintain internal controls and policies to prevent money laundering and terrorist financing.

Designated Compliance Officer

  • AIs should appoint a designated compliance officer responsible for overseeing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures.

UNSC Sanctions Screening

  • AIs are required to screen customers and transactions against government-issued sanctions lists to ensure they are not dealing with sanctioned individuals or entities.

Ongoing Monitoring

  • Continuously monitor customer transactions to identify any unusual or suspicious behavior, implementing automated monitoring systems where applicable.

Reporting Large Cash Transactions

  • Report all cash transactions above the threshold of NAD 99 999.99 to the FIC as required by regulations.

Targeted Financial Sanctions

  • AIs are required to screen their clients against UNSC sanction lists and take necessary action if a match is found.

Prominent Influential Persons (PIPs)

  • Institutions must outline deliberate mechanisms aimed at identifying PIPs and subjecting them to required controls, including seeking management approval before continuing with business relationships and subjecting them to enhanced due diligence.

Independent Audit Functions

  • AIs must develop an audit function to monitor compliance with internal rules and AML/CFT legal framework.

Registration with the FIC

  • AIs and Reporting Institutions not supervised by or regulated by a supervisory body or regulatory body must register their prescribed particulars with the FIC for the purposes of supervising compliance with the FIA.

In conclusion, compliance with these general obligations is vital for AIs to fulfill their role in safeguarding the financial system’s integrity. Non-compliance can lead to severe legal and financial consequences.