(3 Minutes Read)
Namibia faces an imminent threat of being grey-listed for having failed to fully comply with international standards set by the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG) and the Financial Action Task Force (FATF), to strengthen laws to combat money laundering and terrorism financing.
The preliminary indications reveal that Namibia passed the technical compliance test and made progress in five out of the 11 immediate outcomes on the effectiveness test. In addition, 59 out of 72 action items were successfully addressed, with only 13 remaining.
As a result of the few remaining action items, Namibia may be included on the list of jurisdictions under increased monitoring. This will, however, only be confirmed once the FATF and International Cooperation Review Group (ICRG) joint group meeting which will take place in the next few days is concluded. The FATF ICRG will collaborate with Namibia to finalize an Action Plan focusing on these remaining items, said the Minister of Finance and Public Enterprises Iipumbu Shiimi. He further said that Namibia remains committed to addressing the remaining items and emphasizes his government’s unwavering dedication to addressing the remaining action items. Strengthening legal and regulatory frameworks remains paramount, not only to combat financial crimes but also to bolster national development initiatives. Since December 2022, Namibia has been diligently working towards meeting international standards set forth by the ESAAMLG and the FATF.
This came about following the evaluation of Namibia’s financial sector assets exceeding USD 5 billion, which triggered a review by the FATF’s International Cooperation Review Group. As a result, a comprehensive mutual evaluation was conducted over two years, culminating in the adoption of the Namibia Mutual Evaluation Report by the ESAAMLG Council of Ministers on 02 September 2022.
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Greylisting will have negative impacts on Namibia’s economy and reputation, as it may deter foreign investors and increase the cost of doing business with the country.
