Namibia takes steps to address grey listing concerns
Namibia recently presented its first compulsory report at a crucial meeting, engaging with assessors from the Joint Group to clarify any issues related to the Report. Following this engagement, the Joint Group will evaluate Namibia's overall progress in addressing the strategic deficiencies outlined in the Action Plan.
This is according to Bryan Eiseb, director of the Financial Intelligence Centre (FIC).
According to Eiseb, an overall assessment will be submitted by the Joint Group to the Financial Action Task Force (FATF) for consideration and adoption in February 2025.
“The decision by and subsequent approval of Namibia to host this important meeting signals a strong resolve towards ensuring that the anti-money laundering, counter-terrorism financing and counter-proliferation financing regime in the country is aligned to international standards. Moreover, Namibia remains a strong partner in the global efforts to fight money laundering, financing of terrorism and proliferation,” Eiseb said.
Namibia is advised to demonstrate its intent over a two-year period to be removed from the FATF’s grey list, despite notable progress already made.
Providing an update on efforts to remove the grey-listing, Eiseb stated that Namibia had made significant strides in strengthening its anti-money laundering regime but cautioned that there is still a long way ahead towards full compliance.
“The FATF noted that Namibia has made good initial progress with anti-money laundering risk-based supervision, increasing the filling of beneficial ownership information, and having initiated some tangible efforts to strengthen the existing capacity of law enforcement in investigating complex financial crimes,” he said.
However, Eiseb highlighted that Namibia still lacks sufficient measures to prevent tourism-related and financially complex crimes.
Namibia's placement on the grey list stemmed from concerns that had not been sufficiently addressed to satisfy the FATF. In response, a national focal committee has been established to oversee the execution of a plan aimed at restoring international confidence in the country. Investment firm NinetyOne provided this advisory to investors following Namibia's grey-listing.
“FATF reviews are broken down into compliance, with 40 recommendations, six of which are considered core and 11 immediate outcomes on the effectiveness of the control environment,” NinetyOne noted at that time.
Following a review in 2021, Namibia was tasked with implementing 72 recommended actions; however, by the time of the plenary session, 13 actions remained outstanding.
Discussing the implications of grey-listing, NinetyOne emphasized that there is an evident reputational risk Namibia faces as a result of FATF's decision. “Clearly, grey-listing will be negative for Namibia in terms of reputational damage, and higher transactional, administrative and funding costs will result in a less efficient economy with more frictional costs,” it stated.
This is according to Bryan Eiseb, director of the Financial Intelligence Centre (FIC).
According to Eiseb, an overall assessment will be submitted by the Joint Group to the Financial Action Task Force (FATF) for consideration and adoption in February 2025.
“The decision by and subsequent approval of Namibia to host this important meeting signals a strong resolve towards ensuring that the anti-money laundering, counter-terrorism financing and counter-proliferation financing regime in the country is aligned to international standards. Moreover, Namibia remains a strong partner in the global efforts to fight money laundering, financing of terrorism and proliferation,” Eiseb said.
Namibia is advised to demonstrate its intent over a two-year period to be removed from the FATF’s grey list, despite notable progress already made.
Providing an update on efforts to remove the grey-listing, Eiseb stated that Namibia had made significant strides in strengthening its anti-money laundering regime but cautioned that there is still a long way ahead towards full compliance.
“The FATF noted that Namibia has made good initial progress with anti-money laundering risk-based supervision, increasing the filling of beneficial ownership information, and having initiated some tangible efforts to strengthen the existing capacity of law enforcement in investigating complex financial crimes,” he said.
However, Eiseb highlighted that Namibia still lacks sufficient measures to prevent tourism-related and financially complex crimes.
Namibia's placement on the grey list stemmed from concerns that had not been sufficiently addressed to satisfy the FATF. In response, a national focal committee has been established to oversee the execution of a plan aimed at restoring international confidence in the country. Investment firm NinetyOne provided this advisory to investors following Namibia's grey-listing.
“FATF reviews are broken down into compliance, with 40 recommendations, six of which are considered core and 11 immediate outcomes on the effectiveness of the control environment,” NinetyOne noted at that time.
Following a review in 2021, Namibia was tasked with implementing 72 recommended actions; however, by the time of the plenary session, 13 actions remained outstanding.
Discussing the implications of grey-listing, NinetyOne emphasized that there is an evident reputational risk Namibia faces as a result of FATF's decision. “Clearly, grey-listing will be negative for Namibia in terms of reputational damage, and higher transactional, administrative and funding costs will result in a less efficient economy with more frictional costs,” it stated.
