Financial Intelligence Centre Report Highlights Suspicious Transactions in Namibia
A recent report by the Financial Intelligence Centre (FIC) has raised concerns about suspicious transactions in Namibia, citing inadequate capacity and cooperation in investigating and prosecuting money laundering cases.
Inadequate Capacity and Cooperation
The report reveals that many transactions reported or detected were not effectively investigated, prosecuted, or convicted, with a significant number of cases involving large sums of money. Additionally, it was found that many predicate offences did not generate physical cash, making the movement of illicit proceeds more likely to pass through banking and capital markets sectors.
Constraints in Combating Money Laundering
The assessment identified several constraints that hindered effective combat against money laundering, including:
- Inadequate capacity of financial crime investigators
- Asset forfeiture investigators
- Financial crime prosecutors
- Presiding officers
Furthermore, it was noted that domestic cooperation in investigation and prosecution of money laundering cases was inadequate, and the legal framework was weak.
Weaknesses in Prevention of Organized Crime Act
The report also highlighted weaknesses within the Prevention of Organized Crime Act (POCA), which is intended to prevent the concealment of proceeds of crime. As a result, very little illicit funds and assets have been forfeited into the Criminal Assets Recovery Fund.
National Money Laundering Risk Assessment
In terms of the risk model, the overall National Money Laundering risk was rated as “Medium High”, with significant risks identified in the financial sector, including banks and capital markets companies.
Key Recommendations
To effectively combat money laundering, the report recommends:
- Strengthen domestic cooperation in investigation and prosecution of money laundering cases
- Improve the legal framework by addressing weaknesses within POCA and introducing anti-terrorism or terrorist financing legislation
- Increase capacity building for financial crime investigators, asset forfeiture investigators, financial crime prosecutors, and presiding officers
- Enhance due diligence practices in the banking and capital markets sectors to prevent the placement and layering of illicit proceeds
Conclusion
The Financial Intelligence Centre’s report is a timely reminder of the importance of effective anti-money laundering measures in Namibia, and highlights the need for strengthened cooperation between government agencies, financial institutions, and law enforcement to combat this serious threat.