Financial Crime World

UK Introduces New Anti-Money Laundering Regulations in Namibia Amid Global Crackdown on High-Risk Jurisdictions

The United Kingdom has updated its list of high-risk third countries to include Namibia, in a move aimed at tackling strategic deficiencies in anti-money laundering and counter-financial terrorism regimes. This change comes as part of a broader effort to tackle global financial crimes and protect the integrity of the financial system.

Updated List of High-Risk Countries

The Financial Action Task Force (FATF), an inter-governmental organization that sets global standards for anti-money laundering and counter-terrorism financing, has identified 24 countries with significant shortcomings in their AML controls. The updated list includes:

  • Bulgaria: Known for its weak AML/CFT framework
  • Burkina Faso: Faces challenges in implementing effective AML/CFT measures
  • Cameroon: Has struggled to implement FATF recommendations
  • Croatia: Identified as a high-risk jurisdiction due to concerns over money laundering and terrorist financing
  • Democratic People’s Republic of Korea (DPRK): Sanctioned by the United Nations for its role in illicit activities
  • Democratic Republic of the Congo: Faces challenges in implementing effective AML/CFT measures
  • Haiti: Identified as a high-risk jurisdiction due to concerns over money laundering and terrorist financing
  • Iran: Subject to international sanctions for its nuclear program
  • Kenya: Faces challenges in implementing effective AML/CFT measures
  • Mali: Identified as a high-risk jurisdiction due to concerns over money laundering and terrorist financing
  • Monaco: Added to the list due to its weak AML/CFT framework
  • Mozambique: Faces challenges in implementing effective AML/CFT measures
  • Myanmar (Burma): Subject to international sanctions for human rights abuses
  • Namibia: Identified as a high-risk jurisdiction due to concerns over money laundering and terrorist financing
  • Nigeria: Faces challenges in implementing effective AML/CFT measures
  • Philippines: Identified as a high-risk jurisdiction due to concerns over money laundering and terrorist financing
  • Senegal: Faces challenges in implementing effective AML/CFT measures
  • South Africa: Identified as a high-risk jurisdiction due to concerns over money laundering and terrorist financing
  • South Sudan: Subject to international sanctions for human rights abuses
  • Syria: Subject to international sanctions for its role in the Syrian Civil War
  • Tanzania: Faces challenges in implementing effective AML/CFT measures
  • Venezuela: Identified as a high-risk jurisdiction due to concerns over money laundering and terrorist financing
  • Vietnam: Faces challenges in implementing effective AML/CFT measures
  • Yemen: Subject to international sanctions for human rights abuses

Enhanced Due Diligence Measures

Businesses with relationships with individuals or entities based in high-risk third countries must apply enhanced due diligence measures under the UK’s AML regime. This includes:

  1. Verifying the identity of customers and beneficial owners
  2. Assessing the risk of money laundering and terrorist financing
  3. Reporting suspicious transactions to the relevant authorities

Next Steps

The next update to the list is expected on October 25, and businesses must ensure they are aware of the changes and take appropriate action.

In related news, HM Treasury has published an updated advisory notice on high-risk third countries, which provides guidance on the enhanced due diligence measures that businesses must take when dealing with individuals or entities based in these jurisdictions.