|
|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
The majority of crime in Botswana does not generate significant
proceeds. Money laundering in Botswana, to the extent that it
occurs, is not primarily related to proceeds from drugs. However,
there is some indication of an increase in drug trafficking in recent
years and observers have noted an increase in the sophistication
and level of organization of cross-border crime. There has been
an increase in the amount and frequency of major fraud
committed against large organizations, e.g., banks or government
departments, typically with the collusion of an employee. It is not
known whether the laundering of the proceeds of these crimes
takes place in-country or involves transport of proceeds across
borders. The Government of Botswana (GOB) has established
the fundamentals of an anti-money laundering (AML) regime
through various legislative and regulatory instruments.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: NO
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, building societies, collective investment
undertakings, the Botswana Savings Bank, post offices,
registered stockbrokers, long-term insurance business, a licensed
person who transacts foreign exchange, and an international
financial services center certification committee
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, building societies, collective investment
undertakings, the Botswana Savings Bank, post offices,
registered stockbrokers, long-term insurance business, a licensed
person who transacts foreign exchange, and an international
financial services center certification committee
Number of STRs received and time frame: 99 in 2006 - no
additional data available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Two
Convictions: Two
Assets forfeited: criminally: The only criminal forfeiture is under
appeal civilly: Not applicable
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: NO
Botswana is a member of the Eastern and Southern Africa Anti-
Money Laundering Group (ESAAMLG), a Financial Action Task
Force (FATF)-style regional body.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Although the key components of the institutional framework for
anti-money laundering are in place, only the Central Bank
enforces AML requirements. Implementation of the AML regime
has been slow. Botswana has yet to undertake an in-depth review
of money laundering and terrorism financing risks and
vulnerabilities. The country’s Financial Intelligence Agency,
though legally established, is not yet operational. Domestic
coordination between agencies needs improvement. Enforcement
agencies need to be sensitized to financial crimes and trained in
investigation techniques.
Terrorist financing is not criminalized as a specific offense in
Botswana. However, acts of terrorism and related offenses, such
as aiding and abetting, can be prosecuted under the Penal Code
and under the Arms and Ammunitions Act.
Botswana enjoys a relatively low level of corruption compared to
other African states, and the Directorate on Corruption and
Economic Crime is actively investigating an increasing number of
cases. The Department of Public Prosecution regularly
prosecutes corruption offenses committed by politically important
persons.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Botswana is a source, and destination country for women and
children subjected to forced labor and sex trafficking. Some
parents in poor rural communities send their children to work for
wealthier families as domestic servants in cities or as herders at
remote cattle posts, where some become victims of forced labor.
Young Batswana, serving as domestic workers for extended family
or friends of family, in some cases may be subjected to verbal,
physical, or sexual abuse and denied access to education and
basic necessities, conditions indicative of forced labor. Batswana
girls are exploited in prostitution within the country, including in
bars and by truck drivers along major highways. A report indicates
that the organized prostitution of underage girls may be occurring
in Gaborone. Residents in Botswana most susceptible to
trafficking are illegal immigrants from Zimbabwe, unemployed men
and women, those living in rural poverty, agricultural workers, and
children orphaned by HIV/AIDS. Batswana families who employ
Zimbabwean women as domestic workers at times do so without
proper work permits, do not pay adequate wages, and restrict or
control the movement of their employees by threatening to have
them deported to Zimbabwe.
The Government of Botswana does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so, including the launching of the
government’s first anti-trafficking awareness campaign, in
partnership with UNICEF, and working with UNODC to train
officials and formulate anti-trafficking legislation. Despite these
efforts, however, the government has not finalized draft
comprehensive anti-trafficking legislation, and has failed to
prosecute and convict trafficking offenders, but made social
services available to potential trafficking victims. While high-level
officials display an apparent willingness to address the issue, a
government-wide mandate to begin coordinated anti-trafficking
work does not yet exist.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Botswana has a National Counterterrorism Committee to address
issues pertaining to terrorism and weapons of mass destruction.
Botswana established its first intelligence agency in 2008, with
responsibility for both domestic and foreign intelligence gathering.
In April, Botswana's Parliament passed legislation to create a
Financial Intelligence Unit (FIU), which will harmonize Botswana's
anti-money laundering and counterterrorist financing regime.
While the legislation for this has been enacted, the FIU was not
yet established at year’s end. Until the FIU is functioning, the
Directorate on Corruption and Economic Crimes has a dedicated
unit that will continue investigating suspicious transactions. One
goal of this legislation is to decrease the likelihood that terrorist
financing could move through Botswana's financial institutions.
Terrorist financing is not criminalized as a specific offense in
Botswana. However, acts of terrorism and related offenses, such
as aiding and abetting, can be prosecuted under the Penal Code
and under the Arms and Ammunitions Act.
____________________________________________________
AML News / Updates
October 10, 2010 - The Global Forum on Transparency and
Exchange of Information for Tax Purposes has issued a phase
one peer review for Botswana
View Review.....
Links:
Worldwide AML Legislation (International Bar Association)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
The majority of crime in Botswana does not generate significant
proceeds. Money laundering in Botswana, to the extent that it
occurs, is not primarily related to proceeds from drugs. However,
there is some indication of an increase in drug trafficking in recent
years and observers have noted an increase in the sophistication
and level of organization of cross-border crime. There has been
an increase in the amount and frequency of major fraud
committed against large organizations, e.g., banks or government
departments, typically with the collusion of an employee. It is not
known whether the laundering of the proceeds of these crimes
takes place in-country or involves transport of proceeds across
borders. The Government of Botswana (GOB) has established
the fundamentals of an anti-money laundering (AML) regime
through various legislative and regulatory instruments.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: NO
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, building societies, collective investment
undertakings, the Botswana Savings Bank, post offices,
registered stockbrokers, long-term insurance business, a licensed
person who transacts foreign exchange, and an international
financial services center certification committee
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, building societies, collective investment
undertakings, the Botswana Savings Bank, post offices,
registered stockbrokers, long-term insurance business, a licensed
person who transacts foreign exchange, and an international
financial services center certification committee
Number of STRs received and time frame: 99 in 2006 - no
additional data available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Two
Convictions: Two
Assets forfeited: criminally: The only criminal forfeiture is under
appeal civilly: Not applicable
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: NO
Botswana is a member of the Eastern and Southern Africa Anti-
Money Laundering Group (ESAAMLG), a Financial Action Task
Force (FATF)-style regional body.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Although the key components of the institutional framework for
anti-money laundering are in place, only the Central Bank
enforces AML requirements. Implementation of the AML regime
has been slow. Botswana has yet to undertake an in-depth review
of money laundering and terrorism financing risks and
vulnerabilities. The country’s Financial Intelligence Agency,
though legally established, is not yet operational. Domestic
coordination between agencies needs improvement. Enforcement
agencies need to be sensitized to financial crimes and trained in
investigation techniques.
Terrorist financing is not criminalized as a specific offense in
Botswana. However, acts of terrorism and related offenses, such
as aiding and abetting, can be prosecuted under the Penal Code
and under the Arms and Ammunitions Act.
Botswana enjoys a relatively low level of corruption compared to
other African states, and the Directorate on Corruption and
Economic Crime is actively investigating an increasing number of
cases. The Department of Public Prosecution regularly
prosecutes corruption offenses committed by politically important
persons.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Botswana is a source, and destination country for women and
children subjected to forced labor and sex trafficking. Some
parents in poor rural communities send their children to work for
wealthier families as domestic servants in cities or as herders at
remote cattle posts, where some become victims of forced labor.
Young Batswana, serving as domestic workers for extended family
or friends of family, in some cases may be subjected to verbal,
physical, or sexual abuse and denied access to education and
basic necessities, conditions indicative of forced labor. Batswana
girls are exploited in prostitution within the country, including in
bars and by truck drivers along major highways. A report indicates
that the organized prostitution of underage girls may be occurring
in Gaborone. Residents in Botswana most susceptible to
trafficking are illegal immigrants from Zimbabwe, unemployed men
and women, those living in rural poverty, agricultural workers, and
children orphaned by HIV/AIDS. Batswana families who employ
Zimbabwean women as domestic workers at times do so without
proper work permits, do not pay adequate wages, and restrict or
control the movement of their employees by threatening to have
them deported to Zimbabwe.
The Government of Botswana does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so, including the launching of the
government’s first anti-trafficking awareness campaign, in
partnership with UNICEF, and working with UNODC to train
officials and formulate anti-trafficking legislation. Despite these
efforts, however, the government has not finalized draft
comprehensive anti-trafficking legislation, and has failed to
prosecute and convict trafficking offenders, but made social
services available to potential trafficking victims. While high-level
officials display an apparent willingness to address the issue, a
government-wide mandate to begin coordinated anti-trafficking
work does not yet exist.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Botswana has a National Counterterrorism Committee to address
issues pertaining to terrorism and weapons of mass destruction.
Botswana established its first intelligence agency in 2008, with
responsibility for both domestic and foreign intelligence gathering.
In April, Botswana's Parliament passed legislation to create a
Financial Intelligence Unit (FIU), which will harmonize Botswana's
anti-money laundering and counterterrorist financing regime.
While the legislation for this has been enacted, the FIU was not
yet established at year’s end. Until the FIU is functioning, the
Directorate on Corruption and Economic Crimes has a dedicated
unit that will continue investigating suspicious transactions. One
goal of this legislation is to decrease the likelihood that terrorist
financing could move through Botswana's financial institutions.
Terrorist financing is not criminalized as a specific offense in
Botswana. However, acts of terrorism and related offenses, such
as aiding and abetting, can be prosecuted under the Penal Code
and under the Arms and Ammunitions Act.
____________________________________________________
AML News / Updates
October 10, 2010 - The Global Forum on Transparency and
Exchange of Information for Tax Purposes has issued a phase
one peer review for Botswana
View Review.....
Links:
Worldwide AML Legislation (International Bar Association)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| BOTSWANA |
| KnowYourCountry |
|
|
| Last Updated: 16 April 2012 |