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#JustIn: BoN monitors greylisting

Jo-Maré Duddy
Namibia is going to great lengths to meet the deadlines in order to avoid the country from being greylisted after the current 12-month monitoring period expires, the Bank of Namibia (BoN) says.

Issuing a statement on South Africa’s being greylisted, the BoN said as an independent and sovereign state, Namibia’s financial transactions with the rest of the world and capital flows to and from the jurisdiction should continue uninterrupted and be subjected to the current treatments and controls based on its merits.

“This is despite the country’s ties and exposure to the South African financial system,” it added.

Commenting on Namibia’s situation, the central bank said: “Namibia is already making steady progress in addressing findings related to its Anti-Money Laundering and Combatting the Financing of Terrorism and Proliferation Framework (AML/CFT/CPF) in order to maintain the integrity of its financial system.

“This stems from the second peer review and mutual evaluation exercise the country was subjected to last year as part of the Financial Action Task Force (FATF) framework.”

Should Namibia be greylisted, the FATF will closely monitor the country's financial transactions with the rest of the world, the BoN said.

“When this happens, the country's financial system may suffer reputational damage, affecting foreign direct investment, capital flows, and increasing compliance costs,” it added.

Namibia has shown “significant political commitment” to meeting the FATF requirements, according to the central bank. To avoid greylisting, Cabinet directed institutions and stakeholders to implement an action plan adopted in December 2022.

BoN governor Johannes !Gawaxab said: "Notwithstanding these recent developments in our region, we have seen countries close to home successfully exiting the heightened surveillance through resolute commitment and action from all stakeholders.

“Namibia is better positioned to safeguard its interests and protect its financial system because of the demonstrable political will and widespread support from all stakeholders,” he said.

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Allgemeine Zeitung 2024-11-22

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