Mr Viral
The European Commission (EC) last week designated Namibia as a high-risk jurisdiction for antimoney laundering (AML) and counterterrorism financing frameworks (CFT).
The EC updated the European Union (EU) list of high-risk jurisdictions and placed Namibia in high-risk jurisdictions such as Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Nepal and Venezuela.
The EC’s decision is subject to scrutiny by the European parliament and European Council of Ministers within the coming month.
If approved, the list will enter into force 20 days after publication in the EU Official Journal.
“To be delisted, Namibia will need to demonstrate sustained progress in implementing the Financial Action Task Force (FATF) Action Plan, which includes measures to strengthen the effectiveness of its AML/CFT regime.
Once Namibia is removed from the FATF grey list, the EC will assess the reforms undertaken in line with EU-specific rules for delisting,” read a media statement from the EU.
The EU encourages continued open dialogue and technical engagement with all stakeholders in Namibia – both public and private.
European Union ambassador to Namibia Ana Beatriz Martins reaffirmed the EU’s commitment to working closely with the Namibian authorities.
She stated: “The EU values its strong partnership with Namibia. We are actively supporting Namibia’s efforts to strengthen its anti-money laundering framework through dedicated technical assistance, workshops and training activities between EU and Namibian experts from government, regulators and financial sector”.
She added: “We share the same goal: to work towards a more transparent, secure and trusted global financial system that protects us from abuse by criminals, terrorists and corruption”.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The statement elaborated that this decision is a direct consequence of the FATF’s deliberations at its February 2024 Plenary Meeting. It resulted in Namibia’s inclusion on the FATF grey list due to identified strategic deficiencies. The EU is legally bound to consider listing any FATF-listed country.
Once in effect, banks and financial institutions in the EU27 will be required to apply enhanced due diligence measures when conducting financial transactions involving Namibia.
“It is important to note that this listing does not amount to sanctions or prevent Namibia from accessing EU trade, investment or cooperation funding.
The listing is not a political judgment nor a punitive action. It is a procedural requirement to ensure proper financial vigilance.
Namibia remains a valued partner of the EU,” the statement added.
In mid-2024, an EU delegation to Namibia positively replied to a request by Namibian authorities to assist in the implementation of the action plan required by the FATF.
In this regard, technical assistance and expert exchanges are ongoing between EU experts and officials from the Namibia Financial Intelligence Centre (FIC), Namibia Revenue Agency, Customs Authority, Namibian Police and other authorities involved in the enforcement of Namibia’s AML and FCT framework.
These initiatives aim to support Namibia in fulfilling its FATF action plan and ultimately pave the way for removal from both the FATF grey list and the EU high-risk list.
