Apex Bank and Revenue Agency revolutionize trade operations with new verification system
To modernise trade processes, the Bank of Namibia and the Namibia Revenue Agency (NamRA) have jointly introduced the Trade Verification System (TVS), set to be officially launched on 17 November.
This innovative digital initiative is set to enhance the efficiency and transparency of trade operations in the country, a joint released statement on Monday said.
According to the statement, for years, trade operations have relied heavily on manual paperwork, leading to labor-intensive processes vulnerable to errors, fraud, and compliance issues.
The international trade system faced vulnerabilities exploited for illicit activities like fraud, tax evasion, and Trade Based Money Laundering. The absence of a reconciling framework between trade declarations and financial transactions was identified as a key weakness in national assurance frameworks. The Financial Intelligence Centre observed substantial foreign currency losses due to irregular outward remittances for non-existent imports.
Responding to these challenges, a Public-Private Partnership was established under the FIC’s leadership. The investigation revealed losses amounting to N$3 to 4 billion over three years.
According to the statement, recommendations included the implementation of a national framework to reconcile trade declarations with relevant financial transactions, leading to the forthcoming launch of the TVS.
The TVS has been adopted by many countries to enhance efficiency, compliance, and deter illicit practices. These systems automate trade processes, reduce reliance on manual procedures, and ensure document authenticity. They provide a reliable source of information for customs and financial services, facilitating capital export for foreign goods and services while reducing operational costs and ensuring regulatory adherence.
Namibia joins the ranks of early adopters in Africa with the introduction of its Trade Verification System. The Bank and NamRA conducted extensive training workshops nationwide over the past month to acquaint stakeholders with the system’s capabilities. Integrated with NamRA’s Automated System for Customs Data (ASYCUDA), this innovative system allows users to declare transactions in multiple currencies, manage documents, and update pertinent export and import details. Traders now have the option to create their own Unique Consignment Numbers for declarations at NamRA and commercial banks, particularly for prepaid export transactions.
The system also streamlines operations for commercial banks, introducing new data elements for automated and efficient transaction management. Unique identification numbers enhance the accuracy of trader identification and compliance verification. The Bank of Namibia and commercial banks gain increased visibility, accountability, and financial precision.
In conclusion, the Trade Verification System represents a technologically advanced, secure, and efficient approach to international trade. This initiative signifies a significant leap forward in maintaining a robust financial system.
The system officially went live on 15 October , and its launch event on 17 November, will provide a comprehensive overview of its features, operational procedures, and significant advantages. The event will be live-streamed on the Bank of Namibia and NamRA’s Facebook pages.
