The Financial Action Task Force (FATF) has greylisted Namibia over concerns about its effectiveness in combating money laundering (ML), terrorist financing (TF), and proliferation financing (PF).
The country was greylisted on Friday after being identified as falling short in key areas. Bank of Namibia governor Johannes !Gawaxab says the country had been placed under increased monitoring.
He says despite Namibia’s substantial progress, the FATF found Namibia wanting in ML/TF/PF effectiveness in six of the 11 immediate outcomes assessed around effectiveness.
According to !Gawaxab, Namibia has made significant strides in addressing all the technical compliance shortcomings through the amendment of existing laws and introduction of new legislation.
“The FATF greylisting has several implications for Namibia, including potential negative impacts on foreign direct investment, trade and financial transactions,” says !Gawaxab.
The International Monetary Fund notes that FATF greylisting negatively impacts up to 6% of a listed country’s gross domestic product.
“Entities engaging with Namibia may also be required to conduct enhanced due diligence, leading to increased costs and scrutiny,” says !Gawaxab.
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
