Bank of Namiba curbs tax offences of N$33 billion with new trade tool
By Freeman Ya Ngulu.
Wednesday marked the official introduction of the nation’s first Trade Verification System (TVS) by the Bank of Namibia under the theme, “Where innovation meets opportunity, and where businesses thrive in a connected world.”
As a comprehensive digital platform to ensure the legality and accuracy of trade activities, the Trade Verification System is intended to ensure that the trading of goods is verified. It is a digital platform that monitors and regulates cross-border transactions to prevent illegal financial flows and enforce compliance with trade regulations.
In the National Money Laundering, Terrorist and Proliferation Financing Risk Assessment Report of 2023, the Financial Intelligence Center states that the TVS is anticipated to lower the estimated N$33 billion in potential tax-related offences.
Once fully integrated, the TVS is expected to promote seamless and paperless trading processes as commercial banks, clearing agents, the Namibia Revenue Agency (NamRA) and the Bank of Namibia will all view the same documentation as it relates to a particular export or import, be it at point of settlement or clearing at the border.
Deputy Executive Director for Economic Policy at the Ministry of Finance and Public Enterprises, Oscar Capelao promised the cooperation of the government in opposing actions that facilitate illegal financial flows that have a negative impact on the economy.
“Over the years, violations of the nation’s rules and regulations by importers have been reported as misconduct. One tool we use is the TVS,” he said, adding that it is a tool that will be used to the best of their ability to ensure that there is improved decision-making based on timely data and real-time reporting. The overall goal is to improve the tax compliance ratio as it relates to imports and exports.
Deputy Governor of the central bank, Leonie Dunn expressed faith in the new framework, saying “We are now comfortable to be among the first few countries in Africa that have successfully developed and implemented a TVS system that monitors cross-border financial transactions as they relate to the import and export of goods.”
Meanwhile, NamRA Commissioner Sam Shivute stated that the cooperative endeavour highlights the commitment to advancing compliance and transparency in trade operations.
The TVS is anticipated to facilitate smooth, paperless trading procedures once fully integrated. Whether at the moment of payment or during border clearance, commercial banks, clearing agents, the Namibia Revenue Agency, and the Bank of Namibia will all have access to the same documents regarding a particular export or import.
Oscar Capelao, the Deputy Executive Director for Economic Policy at the Ministry of Finance and Public Enterprises, Leonie Dunn, Deputy Governor of the Bank of Namibia and Sam Shivute, NamRA Commissioner at the launch of the Trade Verification System. (Photograph courtesy of the Bank of Namibia)
