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FATF Statement re AML Strategic Deficiencies:
Date: 16 February 2012
In June 2011, Namibia made a high-level political commitment to
work with the FATF and ESAAMLG to address its strategic
AML/CFT deficiencies. Namibia has taken steps towards
improving its AML/CFT regime, including by improving supervision
of financial institutions for AML/CFT compliance and issuing a
Central Bank Determination which allows for penalties. However,
the FATF has determined that certain strategic AML/CFT
deficiencies remain. Namibia should continue to work on
implementing its action plan to address these deficiencies,
including by: (1) adequately criminalising terrorist financing
(Special Recommendation II); (2) establishing and implementing
adequate procedures to identify and freeze terrorist assets
(Special Recommendation III); (3) implementing an adequate
AML/CFT supervisory programme with sufficient powers
(Recommendation 23 and 29); (4) ensuring a fully operational
and effectively functioning Financial Intelligence Unit (FIU), in
particular addressing the operational autonomy of the FIU
(Recommendation 26); (5) implementing effective, proportionate
and dissuasive sanctions in order to deal with non-compliance
with the national AML/CFT requirements (Recommendation 17);
and (6) implementing the 1999 International Convention for the
Suppression of Financing of Terrorism (Special Recommendation
I). The FATF encourages Namibia to address its remaining
deficiencies and continue the process of implementing its action
plan.
____________________________________________________
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Although Namibia has one of the most highly developed financial
systems in Africa, it is not considered a regional financial center.
Sources of potential money laundering in Namibia are related to
both regional and domestic criminal activities. Falsification or
misuse of identity documents, customs violations, trafficking of
precious metals and gems, trafficking in illegal drugs, and stolen
vehicles - mostly from South Africa - are regional problems that
affect Namibia. Organized crime groups involved in smuggling
activities generally use Namibia as a transit point - particularly for
goods destined for Angola. Domestically, real estate as well as
minerals and gems are reportedly used as vehicles for money
laundering. Namibian authorities believe the proceeds of these
activities are laundered through Namibian financial institutions,
but on a small scale. The Namibian government has set up Export
Processing Zones (EPZ). There is no indication of significant
money laundering or terrorist financing via EPZs.
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
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks and non-bank financial institutions,
Casinos or gaming institutions, exchange houses, stock
brokerages, cash couriers, casinos, dealers in jewels and
precious metals, insurance companies, pawn shops, realtors, high-
value dealers in art and vehicles, and intermediaries such as
lawyers, accountants, notaries, or broker/dealers
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks and non-bank financial institutions,
exchange houses, stock brokerages, cash couriers, casinos,
dealers in jewels and precious metals, insurance companies,
pawn shops, realtors, high-value dealers in art and vehicles; and
intermediaries such as lawyers, accountants, notaries, or
broker/dealers
Number of STRs received and time frame: 483 from May 2009 to
December 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 0
Convictions: 0
Assets forfeited: criminally: YES civilly: YES
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
Namibia is a member of the Eastern and Southern Africa Anti-
Money Laundering Group (ESAAMLG), a Financial Action Task
Force-style regional body. Its most recent mutual evaluation
report can be found here: http://www.esaamlg.
org/userfiles/Namibia_detailed_report.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Namibia is revising its anti-money laundering framework to
change from a rules-based to a risk-based approach. In certain
subsectors regulatory bodies cannot impose sanctions such as
the withdrawal of licenses for members that are not complying with
Namibia’s AML framework. There are separate bills in draft to
cover gambling and estate agents that would augment the powers
of regulatory authorities to monitor and enforce Namibia’s AML
framework. There have not yet been any arrests or prosecutions
for money laundering. Three cases have resulted in provisional
forfeiture orders. One provisional order was overturned in the
courts. The remaining two provisional orders can still be
challenged in the courts.
Namibia has not reached any bilateral agreement with the United
States authorities on a mechanism for exchange of records in
criminal matters. However, Namibia has made substantial efforts
to cooperate with the United States in the area of law
enforcement, especially in the area of extradition. Namibia has
cooperative agreements with countries in the Southern African
Development Community.
Namibia should continue to implement its AML laws and should
pass the pending anti-terrorism bill. As part of the implementation
process, the Government of Namibia (GON) should ensure
sufficient resources and training are provided to supervisory,
analytical, investigative, prosecutorial and judicial entities with
responsibilities under the laws. Cross-border currency reporting
should be implemented and further measures taken to enforce
Namibia’s porous borders. The GON should become a party to
the UN Convention for the Suppression of the Financing of
Terrorism.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
Namibia is a country of origin, transit, and destination for women,
children, and possibly men subjected to forced labor and sex
trafficking. Victims are lured by traffickers to urban centers and
commercial farms with promises of legitimate work for adequate
wages, but instead are forced to work long hours and carry out
hazardous tasks; victims may also be beaten or raped by
traffickers or third parties. Traffickers exploit Namibian children,
as well as children from Angola, Zambia, and possibly Zimbabwe,
through exploitative, and in some cases, forced labor in
agriculture, cattle herding, domestic service, charcoal production,
and in prostitution in Namibia. In some cases, Namibian parents
unwittingly sell their children to traffickers. Other adults subject
the children of their distant relatives to forced labor or sex
trafficking. Small business owners and farmers may also commit
trafficking crimes against women or children. Unconfirmed reports
indicate that truck drivers recruit and transport Namibian women
and children to South Africa, who may later be subjected to forced
prostitution. Among Namibia’s ethnic groups, San girls are
particularly vulnerable to be trafficked for domestic servitude;
during the reporting period, for example, a 22-year-old San girl –
lured six years earlier with promises of education – was discovered
in a situation of domestic servitude, suffering physical, sexual, and
psychological abuse.
The Government of Namibia does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the year, the
government investigated cases of child and adult labor trafficking,
and rescued child victims of labor trafficking. It prosecuted nine
suspected traffickers though it did not convict any suspected
traffickers. The government also opened two shelters and a one-
stop shop for victim services and began renovating three other
similar facilities, which will provide care for victims of gender-
based violence, as well as trafficking, and raised public
awareness via media campaigns and regional visits by a
parliamentary delegation.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
Date: 16 February 2012
In June 2011, Namibia made a high-level political commitment to
work with the FATF and ESAAMLG to address its strategic
AML/CFT deficiencies. Namibia has taken steps towards
improving its AML/CFT regime, including by improving supervision
of financial institutions for AML/CFT compliance and issuing a
Central Bank Determination which allows for penalties. However,
the FATF has determined that certain strategic AML/CFT
deficiencies remain. Namibia should continue to work on
implementing its action plan to address these deficiencies,
including by: (1) adequately criminalising terrorist financing
(Special Recommendation II); (2) establishing and implementing
adequate procedures to identify and freeze terrorist assets
(Special Recommendation III); (3) implementing an adequate
AML/CFT supervisory programme with sufficient powers
(Recommendation 23 and 29); (4) ensuring a fully operational
and effectively functioning Financial Intelligence Unit (FIU), in
particular addressing the operational autonomy of the FIU
(Recommendation 26); (5) implementing effective, proportionate
and dissuasive sanctions in order to deal with non-compliance
with the national AML/CFT requirements (Recommendation 17);
and (6) implementing the 1999 International Convention for the
Suppression of Financing of Terrorism (Special Recommendation
I). The FATF encourages Namibia to address its remaining
deficiencies and continue the process of implementing its action
plan.
____________________________________________________
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Although Namibia has one of the most highly developed financial
systems in Africa, it is not considered a regional financial center.
Sources of potential money laundering in Namibia are related to
both regional and domestic criminal activities. Falsification or
misuse of identity documents, customs violations, trafficking of
precious metals and gems, trafficking in illegal drugs, and stolen
vehicles - mostly from South Africa - are regional problems that
affect Namibia. Organized crime groups involved in smuggling
activities generally use Namibia as a transit point - particularly for
goods destined for Angola. Domestically, real estate as well as
minerals and gems are reportedly used as vehicles for money
laundering. Namibian authorities believe the proceeds of these
activities are laundered through Namibian financial institutions,
but on a small scale. The Namibian government has set up Export
Processing Zones (EPZ). There is no indication of significant
money laundering or terrorist financing via EPZs.
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
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks and non-bank financial institutions,
Casinos or gaming institutions, exchange houses, stock
brokerages, cash couriers, casinos, dealers in jewels and
precious metals, insurance companies, pawn shops, realtors, high-
value dealers in art and vehicles, and intermediaries such as
lawyers, accountants, notaries, or broker/dealers
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks and non-bank financial institutions,
exchange houses, stock brokerages, cash couriers, casinos,
dealers in jewels and precious metals, insurance companies,
pawn shops, realtors, high-value dealers in art and vehicles; and
intermediaries such as lawyers, accountants, notaries, or
broker/dealers
Number of STRs received and time frame: 483 from May 2009 to
December 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 0
Convictions: 0
Assets forfeited: criminally: YES civilly: YES
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
Namibia is a member of the Eastern and Southern Africa Anti-
Money Laundering Group (ESAAMLG), a Financial Action Task
Force-style regional body. Its most recent mutual evaluation
report can be found here: http://www.esaamlg.
org/userfiles/Namibia_detailed_report.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Namibia is revising its anti-money laundering framework to
change from a rules-based to a risk-based approach. In certain
subsectors regulatory bodies cannot impose sanctions such as
the withdrawal of licenses for members that are not complying with
Namibia’s AML framework. There are separate bills in draft to
cover gambling and estate agents that would augment the powers
of regulatory authorities to monitor and enforce Namibia’s AML
framework. There have not yet been any arrests or prosecutions
for money laundering. Three cases have resulted in provisional
forfeiture orders. One provisional order was overturned in the
courts. The remaining two provisional orders can still be
challenged in the courts.
Namibia has not reached any bilateral agreement with the United
States authorities on a mechanism for exchange of records in
criminal matters. However, Namibia has made substantial efforts
to cooperate with the United States in the area of law
enforcement, especially in the area of extradition. Namibia has
cooperative agreements with countries in the Southern African
Development Community.
Namibia should continue to implement its AML laws and should
pass the pending anti-terrorism bill. As part of the implementation
process, the Government of Namibia (GON) should ensure
sufficient resources and training are provided to supervisory,
analytical, investigative, prosecutorial and judicial entities with
responsibilities under the laws. Cross-border currency reporting
should be implemented and further measures taken to enforce
Namibia’s porous borders. The GON should become a party to
the UN Convention for the Suppression of the Financing of
Terrorism.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
Namibia is a country of origin, transit, and destination for women,
children, and possibly men subjected to forced labor and sex
trafficking. Victims are lured by traffickers to urban centers and
commercial farms with promises of legitimate work for adequate
wages, but instead are forced to work long hours and carry out
hazardous tasks; victims may also be beaten or raped by
traffickers or third parties. Traffickers exploit Namibian children,
as well as children from Angola, Zambia, and possibly Zimbabwe,
through exploitative, and in some cases, forced labor in
agriculture, cattle herding, domestic service, charcoal production,
and in prostitution in Namibia. In some cases, Namibian parents
unwittingly sell their children to traffickers. Other adults subject
the children of their distant relatives to forced labor or sex
trafficking. Small business owners and farmers may also commit
trafficking crimes against women or children. Unconfirmed reports
indicate that truck drivers recruit and transport Namibian women
and children to South Africa, who may later be subjected to forced
prostitution. Among Namibia’s ethnic groups, San girls are
particularly vulnerable to be trafficked for domestic servitude;
during the reporting period, for example, a 22-year-old San girl –
lured six years earlier with promises of education – was discovered
in a situation of domestic servitude, suffering physical, sexual, and
psychological abuse.
The Government of Namibia does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the year, the
government investigated cases of child and adult labor trafficking,
and rescued child victims of labor trafficking. It prosecuted nine
suspected traffickers though it did not convict any suspected
traffickers. The government also opened two shelters and a one-
stop shop for victim services and began renovating three other
similar facilities, which will provide care for victims of gender-
based violence, as well as trafficking, and raised public
awareness via media campaigns and regional visits by a
parliamentary delegation.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
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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.
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| Last Updated: 16 February 2012 |