Namibia Country Summary

FATF Status

Namibia is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 21 February 2025

Since February 2024, when Namibia made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime, Namibia has taken steps towards improving its AML/CFT regime, including by strengthening FIU resources dedicated to both its supervision responsibilities and operational and strategic analysis, and increasing the LEAs’ financial and human resources dedicated to TF. Namibia should continue working on implementing its FATF action plan to address strategic deficiencies, including by: (1) strengthening its AML/CFT risk based supervision through conducting offsite and onsite inspections informed by supervisory risk assessment tools and applying effective, proportionate and dissuasive sanctions for breaches of AML/CFT obligations; (2) enhancing preventive measures through inspections and outreach to ensure that FIs and DNFBPs apply enhanced due diligence measures as well as TFS obligations related to TF and PF without delay; (3) increasing the filing of beneficial ownership information of legal persons and arrangements, and applying remedial actions and/or effective, proportionate and dissuasive sanctions against breaches of compliance with beneficial ownership obligations; (4) improving the cooperation between the FIU and LEAs to enhance the use and integration of financial intelligence in investigations; (5) enhancing the operational capabilities of authorities involved in ML investigations and prosecutions by providing them with adequate resources and targeted trainings; (6) demonstrating the LEAs’ capabilities to effectively investigate and prosecute ML/TF cases.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in Namibia was undertaken in 2024. According to that Evaluation, Namibia was deemed Compliant for 8 and Largely Compliant for 26 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Namibia's Anti-Corruption Commission, established in 2006, faces challenges in effectively implementing anti-corruption measures due to budget constraints, despite existing legislation. A 2016 survey indicated that 78% of respondents viewed corruption as a significant issue, exacerbated by a high-profile fishing industry scandal that has damaged the ruling party's reputation. Additionally, Namibia grapples with various criminal activities, including human trafficking, wildlife crime, and financial fraud, while its governance and law enforcement systems struggle with corruption and resource limitations.

Namibia's economy is characterized by a strong emphasis on attracting both domestic and foreign investment to drive growth, reduce unemployment, and diversify its economic base. The mining, fishing, and tourism sectors are key areas of investment, with significant contributions from countries like China, South Africa, and Canada. Despite a generally positive investment climate bolstered by political stability and infrastructure development, challenges such as a small domestic market, high transport costs, and a limited skilled labor pool persist.

Namibia's investment climate is generally positive, characterized by political stability and a commitment to attracting both domestic and foreign investment to stimulate economic growth. The government emphasizes equal treatment for foreign investors under the Foreign Investment Act, which includes provisions for fair compensation in case of expropriation and access to foreign exchange. Key sectors attracting investment include mining, fishing, and tourism, with significant contributions from countries like China, South Africa, and Canada.