CHAMWE KAIRA
The Financial Intelligence Centre (FIC) said in its annual report for the financial year ending 31 March that surplus for the year increased by N$ 28.3 million from a N$ 3.5 million deficit in 2023 to a surplus of N$ 24.8 million in 2024.
Total operating expenses increased by N$ 3.9 million from N$ 45.2 million in 2023 to 49.1 million in 2024. Total assets increased by N$ 25 million from N$ 26.9 million in 2023 to N$ 51.9 million in 2024. Total investments decreased by N$ 8.9 million from N$ 12.6 million in 2023 to N$ 3.7 million in 2024
The FIC also gave an update on the grey listing of Namibia by the FATF. The report said Namibia was on 23 February 2024, was placed on the jurisdictions under enhanced monitoring (grey list) by the Financial Action Task Force (FATF).
Consequently, the FATF issued an Action Plan on the remaining 13 action items which must be completed within the timelines set out in the Action Plan. This means that Namibia must report progress at set intervals during the 24-month period, with the first progress report expected to be ready by October 2024, the report said.
To track progress, the FIC has begun engagements with stakeholders operating as the National Focal Committee to execute the FATF Action Plan. In turn, the National Focal Committee reports to the Joint Cabinet Committees on Treasury and Trade and Economic Development on a bi-monthly basis.
The FIC said Namibia remains committed to addressing the action items within the stipulated time-period.
The FATF grey list refers to the FATF’s practice of placing jurisdictions under increased monitoring. The FIC explained that the FATF does not call for the application of enhanced due diligence measures to be applied to these jurisdictions.
“Instead, the FATF calls for the application of a risk based approach by encouraging its members and all jurisdictions to take into account the jurisdiction’s information on enhanced monitoring in their risk analysis.”
The FIC noted that Namibia is on this list and high-risk jurisdictions subject to a call for action that are not actively engaging with the FATF to address their strategic deficiencies.
“Countries that do not demonstrate effective progress on the list of increased monitoring are also escalated to this list, the so-called blacklist. The FATF normally calls for action against such countries which has the same effect as sanctions being imposed.”
The FIC explained that the FATF grey list has tangible consequences for a jurisdiction’s economy and financial system, which includes, amongst others, restrictions on cross border transactions, which may negatively impact a jurisdiction’s ability to obtain credit, and further places limitations on inward foreign investment.
