FATF status

Namibia is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 25 October 2024

In February 2024, Namibia made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime. Namibia should continue working on implementing its FATF action plan by: (1) strengthening its AML/CFT risk based supervision through enhancing the human and resource capacities, conducting offsite and onsite inspections informed by supervisory risk assessment tools and applying effective, proportionate and dissuasive sanctions for breaches of AML/CFT obligations; (2) enhancing preventive measures through inspections and outreach to ensure that FIs and DNFBPs apply enhanced due diligence measures as well as TFS obligations related to TF and PF without delay; (3) increasing the filing of beneficial ownership information of legal persons and arrangements, and applying remedial actions and/or effective, proportionate and dissuasive sanctions against breaches of compliance with beneficial ownership obligations; (4) providing the FIU with adequate human and financial resources, as well as trainings, to improve operational and strategic analysis; (5) improving the cooperation between the FIU and LEAs to enhance the use and integration of financial intelligence in investigations; (6) enhancing the operational capabilities of authorities involved in ML and TF investigations and prosecutions by providing them with adequate resources and targeted trainings; (7) demonstrating the LEAs’ capabilities to effectively investigate and prosecute ML/TF cases; and (8) approving the amended National Counter Terrorism Strategy.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in Namibia was undertaken in 2024. According to that Evaluation, Namibia was deemed Compliant for 8 and Largely Compliant for 26 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

The Anti-Corruption Act of 2003 established the Anti-Corruption Commission (ACC) in Namibia, which has faced challenges in effectively implementing anti-corruption measures due to budget constraints. A 2016 survey indicated that 78 percent of respondents viewed corruption as a significant issue, particularly in rural areas, while a notable fishing industry scandal in 2019 further highlighted the problem, leading to charges against government officials. Despite having a legal framework and international agreements to combat corruption, enforcement remains inconsistent, and public perception of corruption has been declining over the past decade.

Namibia's economy is characterized by a strong emphasis on attracting both domestic and foreign investment to drive growth and reduce unemployment. Key sectors such as mining, fishing, and tourism have historically drawn significant investment, with notable contributions from countries like China, South Africa, and Canada. Despite challenges such as a small domestic market and high transport costs, Namibia's political stability and favorable investment climate, bolstered by infrastructure improvements and access to regional markets, position it as an attractive destination for foreign direct investment.

Namibia's investment climate is generally positive, characterized by political stability and a commitment to attracting both domestic and foreign investment to stimulate economic growth. The Foreign Investment Act of 1993 ensures equal treatment for foreign investors, while the government encourages partnerships with local firms and emphasizes the importance of local employment. Key sectors attracting investment include mining, fishing, and tourism, with significant foreign investments from countries like China, South Africa, and Canada.