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.

Namibia's Anti-Corruption Commission (ACC), established in 2006 under the Anti-Corruption Act of 2003, aims to combat public corruption but struggles with implementation due to budget constraints. A 2016 survey indicated that 78% of respondents viewed corruption as a significant issue, ranking it as the third-most critical development challenge in the country. The 2019 fishing industry scandal, involving government officials and business leaders, highlighted the pervasive corruption problem, prompting calls for more effective government action, despite Namibia's adherence to various anti-corruption conventions.

Namibia's economy is focused on attracting both domestic and foreign investment to promote growth, reduce unemployment, and diversify its economic base. 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 a generally positive investment climate bolstered by political stability and infrastructure development, challenges such as a small domestic market and high transport costs remain.

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 and emphasizes the importance of partnerships with Namibian firms, while sectors like mining, fishing, and tourism have historically drawn significant investments. Despite some challenges such as a small domestic market and high transport costs, the government is actively working to improve infrastructure and facilitate investment through various incentives.