(3 Minutes Read)
The Financial Action Task Force’s (FATF) Plenary greylisted Namibia and placed under increased monitoring due to concerns over effective implementation and compliance with international Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Combatting Proliferation Financing (CPF) standards. Greylisting, publicly announces deficiencies in a country’s ability to effectively counter ML/TF/PF.
Namibia was found lacking in AML/CFT/CPF effectiveness in six of the 11 immediate outcomes assessed regarding effectiveness. The IMF notes that FATF Greylisting negatively impacts up to 6% of a listed country’s GDP, while entities engaging with Namibia may also be required to conduct enhanced due diligence, leading to increased costs and scrutiny.
Effectiveness compliance focuses on a country’s ability to demonstrate an effective framework for protecting the financial system from ML/TF/PF abuse, considering the specific risks it faces. It further delves into the practical and effective implementation and enforcement of laws and regulations adopted to protect the financial system, stated Johannes !Gawaxab, Chairperson of the AML/CFT/CPF Council. Out of 72 recommended actions, Namibia has made progress by addressing 59 action items, with 13 action items within the domains of six national AML/CFT/CPF combatting stakeholders remaining outstanding, requiring urgent attention.
Despite the greylisting,!Gawaxab said Namibia’s financial system remains sound, stable, and well-capitalized.
Recognizing the urgency of the situation, the National Focal Committee, comprising representatives from public and private sector stakeholders, will enable an Execution Plan to execute the FATF-prescribed Action Plan and ensure the timely address of the outstanding action items. This comprehensive approach ensures coordinated efforts to strengthen Namibia’s AML/CFT/CPF regime and restore international confidence in Namibia’s financial system.
With robust due diligence measures in place, transactions between Namibia and the global community will continue to be safeguarded. Businesses and citizens can proceed with confidence in conducting transactions internationally.
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FATF, established as a global standard-setting body under the UN, the FATF encapsulates these obligations in its 40 Recommendations on ML/TF/PF, conducts mutual evaluations of member countries, and publicly releases reports assessing the country’s compliance levels.
