BoN goes after illegal forex traders

THE Bank of Namibia has increased its drive to stamp out illegal trading with foreign currency, which carries a hefty fine of N$250 000 or five years in prison, or both.

People trying to take large sums of foreign cash out of the country are also under the spotlight.’We have stepped up our awareness campaign to alert the public and also people coming to Namibia,’ Sylvia Shikongo, Deputy Director of Exchange Control at BoN told The Namibian yesterday. ‘There are people entering Namibia from countries who don’t seem to have foreign exchange controls and they appear to be unaware that Namibia has strict controls.’According to Shikongo, BoN will put up public notices in various languages, including Portuguese, at airports in Namibia and all border entry points, especially in northern Namibia, to warn about the consequences of illegal trading in foreign currencies.BoN has published a public notice on the topic in the print media in the past few days.Shikongo of BoN explained that forex control dates back to a law of 1933, with its regulations updated and amended over time, with the latest amendment done on August 31 2007.’The Currency and Exchanges Act of 1933 (of South Africa) is binding not only for Namibia, but also for all five member states of the Southern African Customs Union (Sacu),’ Shikongo told The Namibian. ‘When Namibia joined Sacu, Government accepted all existing Sacu regulations and agreements, including the ‘old’ law of 1933, which is however still serving its purpose,’ the Deputy Director of Exchange Control at the central bank added. The other Sacu members are Botswana, Lesotho, Swaziland and South Africa.Asked to comment on the number of cases recorded of individuals and companies involved in illegal selling and buying of foreign currency and the cases of individuals trying to smuggle large amounts of cash out of Namibia, Shikongo declined to give figures.In its public notice, BON asked the public to report such cases and warned that such sellers and buyers risked having their goods attached and forfeited on top of the N$250 000 fine and/or the five-year prison term.brigitte@namibian.com.na