WINDHOEK, Feb. 27– Namibia was grey-listed by the Financial Action Task Force (FATF) Friday, due to concerns over the country’s compliance with international Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Combating Proliferation Financing (CPF) standards. The FATF Plenary found Namibia lacking in AML/CFT/CPF effectiveness in six out of the eleven immediate outcomes assessed, focusing on the country’s ability to protect its financial system from abuse related to money laundering, terrorist financing, and proliferation financing. In a statement released Friday, Bank of Namibia Governor Johannes Gawaxab said the FATF grey-listing has several implications for Namibia, including potential negative impacts on foreign direct investment, trade and financial transactions “The IMF states that FATF grey-listing negatively impacts up to 6 percent 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,” he said. While Namibia has made significant progress by addressing 59 out of 72 recommended actions, 13 action items within the domains of six national AML/CFT/CPF combatting stakeholders remain outstanding, requiring urgent attention, he added. Gawaxab said, despite the grey-listing, Namibia’s financial system remains stable and well-capitalized with robust due diligence measures in place, international transactions involving Namibia will continue to be safeguarded, providing confidence to businesses and citizens alike. “Moving forward, we are committed to swiftly closing the identified gaps, drawing lessons from neighboring countries that have effectively managed similar situations. We remain positive about the future of Namibia’s financial system,” he said.
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