EU flags Namibia for financial risks
The European Commission has updated the European Union (EU) list of high-risk jurisdictions for anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks.
Namibia is now listed among the high-risk jurisdictions, alongside Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Nepal, and Venezuela.
This decision follows the Financial Action Task Force (FATF) deliberations at its February 2024 Plenary Meeting, which resulted in Namibia being placed on the FATF “grey list” due to identified strategic deficiencies, the EU Delegation to Namibia said in a statement.
“The EU is legally bound to consider listing any FATF-listed country. The European Commission’s decision is subject to scrutiny by the European Parliament and the Council of Ministers within the coming month. If approved, the list will enter into force 20 days after its publication in the Official Journal of the EU,” the statement added.
Once in effect, banks and financial institutions across the EU27 will be required to apply enhanced due diligence measures when conducting financial transactions involving Namibia.
“It is important to note that this listing does not amount to sanctions and does not prevent Namibia from accessing EU trade, investment, or cooperation funding. The listing is not a political judgement nor a punitive action; it is a procedural requirement to ensure proper financial vigilance. Namibia remains a valued partner of the European Union,” the Delegation said.
According to the Delegation, by mid-2024 it had notified Namibia, and the country responded positively to a request by local authorities to assist in implementing the Action Plan required by the FATF.
“Technical assistance and expert exchanges are ongoing between EU experts and officials from the Namibia Financial Intelligence Centre (FIC), Namibia Revenue Agency, Customs Authority, Namibian Police, and other authorities involved in enforcing Namibia’s AML and CFT frameworks,” the EU Delegation said.
“To be delisted, Namibia will need to demonstrate sustained progress in implementing the FATF Action Plan, which includes measures to strengthen the effectiveness of its AML/CFT regime. Once Namibia is removed from the FATF grey list, the European Commission will assess the reforms undertaken in line with EU-specific rules for delisting,” it added.
Namibia is now listed among the high-risk jurisdictions, alongside Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Nepal, and Venezuela.
This decision follows the Financial Action Task Force (FATF) deliberations at its February 2024 Plenary Meeting, which resulted in Namibia being placed on the FATF “grey list” due to identified strategic deficiencies, the EU Delegation to Namibia said in a statement.
“The EU is legally bound to consider listing any FATF-listed country. The European Commission’s decision is subject to scrutiny by the European Parliament and the Council of Ministers within the coming month. If approved, the list will enter into force 20 days after its publication in the Official Journal of the EU,” the statement added.
Once in effect, banks and financial institutions across the EU27 will be required to apply enhanced due diligence measures when conducting financial transactions involving Namibia.
“It is important to note that this listing does not amount to sanctions and does not prevent Namibia from accessing EU trade, investment, or cooperation funding. The listing is not a political judgement nor a punitive action; it is a procedural requirement to ensure proper financial vigilance. Namibia remains a valued partner of the European Union,” the Delegation said.
According to the Delegation, by mid-2024 it had notified Namibia, and the country responded positively to a request by local authorities to assist in implementing the Action Plan required by the FATF.
“Technical assistance and expert exchanges are ongoing between EU experts and officials from the Namibia Financial Intelligence Centre (FIC), Namibia Revenue Agency, Customs Authority, Namibian Police, and other authorities involved in enforcing Namibia’s AML and CFT frameworks,” the EU Delegation said.
“To be delisted, Namibia will need to demonstrate sustained progress in implementing the FATF Action Plan, which includes measures to strengthen the effectiveness of its AML/CFT regime. Once Namibia is removed from the FATF grey list, the European Commission will assess the reforms undertaken in line with EU-specific rules for delisting,” it added.
