Namibia Introduces Targeted Financial Sanctions to Combat Terrorism and Proliferation

Introduction

In an effort to combat terrorism, proliferation, and other serious threats to international peace and security, Namibia has introduced a new set of regulations aimed at implementing Targeted Financial Sanctions (TFS). This article provides an overview of the new regulations and their implementation.

Background

Targeted Financial Sanctions are a critical tool in the fight against terrorism and proliferation. They involve freezing assets without delay and prohibiting the making available of funds or other assets or services to designated individuals, entities, or groups. The aim is to prevent the misuse of financial systems by terrorists and proliferators.

New Regulations

The new regulations require financial institutions, designated non-financial businesses and professions (DNFBPs), and virtual asset service providers (VASPs) to screen customers against the United Nations Consolidated List and other relevant sanctions lists. The screening process involves matching customer information with data on the sanctions lists.

• If a match is identified, the institution must determine whether it is a “confirmed match” or a “false positive result.”
• If it is a confirmed match, all funds or assets of the individual, entity, or group must be frozen without delay, and the institution must report the freezing measures to the Financial Intelligence Centre (FIC) and relevant supervisory authorities within a few hours.
• Institutions are prohibited from making funds or other assets or services available to designated individuals, entities, or groups. Any attempts to provide such services must be reported immediately.

Implementation

To facilitate reporting, the Namibian government has launched a new platform called goAML, which allows institutions to submit reports on freezing measures taken as a result of confirmed or potential matches. The platform is designed to ease the burden of reporting and ensure the necessary confidentiality required for this sensitive process.

• In one recent example, a real estate agent in Namibia identified a confirmed match when screening parties to a property sale transaction.
  • The agent was required to block the transaction immediately, refrain from offering any further services to the individual, and submit a report via goAML.
  • The report included attachments detailing the type, value, and location of the real estate being sold, as well as identification documents for the confirmed match.

Conclusion

By implementing TFS, Namibia joins a growing list of countries that are taking proactive steps to combat these serious threats to international peace and security. The new regulations aim to prevent the misuse of financial systems by terrorists and proliferators, and to protect the global financial system from abuse.

Targeted Financial Sanctions Explained

TFS is a critical tool in the fight against terrorism and proliferation. It involves freezing assets without delay and prohibiting the making available of funds or other assets or services to designated individuals, entities, or groups. By implementing TFS, Namibia is taking a proactive step towards ensuring the integrity of its financial system and protecting the global community from these serious threats.

Timeline

The regulations came into effect on [date] and apply to all financial institutions, DNFBPs, and VASPs operating in Namibia.