Shiimi sketches progress on avoiding greylisting by the Financial Action Task Force
The Minister of Finance, Iipumbu Shiimi provided an update this week on Namibia’s progress to combat money laundering and terrorism financing, to prevent a greylisting as has happened to South Africa early in 2023.
Since December 2022, Namibia has been steadily working to meet the rigorous international standards set by the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG) and the Financial Action Task Force (FATF).
Shiimi stated that a thorough mutual evaluation spanning two years culminated in the adoption of the Namibia Mutual Evaluation Report by the ESAAMLG Council of Ministers on 2 September 2022.
“Following the evaluation, Namibia’s financial sector assets exceeding US$5 billion prompted a review by the FATF’s International Cooperation Review Group (ICRG). Over a 12-month observation period concluded in October 2023, Namibia took crucial steps to address 72 key recommended actions outlined in the Mutual Evaluation Report,” he said.
In response to the evaluation, Namibia enacted four new laws and amended nine existing laws by August 2023. Additionally, a specialized Project Team was established to ensure the effective implementation of these legal and policy frameworks, providing regular reports to relevant authorities and stakeholders. Namibia submitted its final progress report to the Review Group by the end of 2023, leading to an engagement with the FATF ICRG joint group in Abu Dhabi in January 2024.
During this engagement, Namibia demonstrated its commitment to address the evaluation findings. Preliminary indications suggest that Namibia passed the technical compliance test and made progress in five out of the 11 immediate outcomes on the effectiveness test. Notably, 59 out of 72 action items were successfully addressed, with only 13 remaining.
However, due to the remaining action items, Namibia may be placed on the list of jurisdictions under increased monitoring. This will only be determined after conclusion of the FATF ICRG joint group meeting in the coming days. The FATF ICRG will collaborate with Namibia to finalize an Action Plan focusing on these remaining items.
Shiimi emphasized the government’s unwavering dedication to address the remaining action items, stressing the importance of strengthening legal and regulatory frameworks not only to combat financial crimes but also to bolster national development.
