Financial Crime World

Namibia’s Threat and Vulnerability Assessment Highlights Medium-High Risk of Terrorist Financing

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A recent update to the National Risk Assessment (NRA) report has revealed that Namibia faces a medium-high risk of terrorist financing, with a threat level rated as Medium (50%) and a vulnerability level rated as 0.7-0.8 or 70%-80%.

Threats to Namibia’s Financial System

The NRA report highlights that threats to Namibia’s financial system come from both domestic and foreign sources.

Domestic Threats

  • Rated Low (30%)
  • Considered a relatively minor risk

Foreign Threats

  • Rated Medium (50%)
  • Considered a significant risk due to cross-border threats from neighboring countries with active terrorist threats

Vulnerability Assessment

The vulnerability assessment highlights that national combating effectiveness is only between 20%-30%, indicating that Namibia’s financial system is moderately exposed to abuse or exploitation.

Increased Vulnerability

  • National and institutional frameworks are increasingly open to abuse or unable to deter threats
  • This has significantly driven up the overall risk exposure

The Importance of Considering All Stages of Terrorist Financing

The NRA report emphasizes that threats can come from various sources, including:

  • Individuals, groups, and organizations sympathetic to terrorist ideologies
  • Cross-border threats, particularly from neighboring countries with active terrorist threats

The Stages of Terrorist Financing

  • Raising funds
  • Moving funds
  • Storing funds and other assets
  • Using funds and other assets for terrorist purposes

Recommendations for Financial Institutions, DNFBPs, and Law Enforcement Agencies

Financial institutions, DNFBPs, and law enforcement agencies are urged to take note of the concerns raised in the NRA report and adapt their approaches accordingly. The absence of known threats or cases does not necessarily mean that a jurisdiction has a low terrorist financing risk, as funds can still be raised and transferred abroad for terrorist purposes.

Continuous Monitoring and Assessment

  • Emphasizes the need for continuous monitoring and assessment of Namibia’s terrorist financing risks to ensure effective prevention and mitigation strategies are in place.