BoN, Namfisa agree to share info

THE Bank of Namibia (BoN) and the Namibia Financial Institution Advisory Authority (Namfisa) yesterday signed a Memorandum of Understanding (MoU) aimed at improving co-operation between the two institutions that regulate most of the institutional financial activity in the country.

The BoN oversees all local banks, while Namfisa regulates short and long term insurers, pensions, accountants, auditors, unit trusts, participatory bond schemes, friendly societies and even furniture and clothing accounts held at local stores, Frans van Rensburg, CEO of Namfisa explained. According the BON Governor, Tom Alweendo, of particular importance was the duty upon both regulators to alert each other on developments in their respective industries that may impact the financial systems.He said the MoU will enable both parties to enhance their readiness to act in a timeous manner to mitigate systemic economic risks and thus to ensure the financial soundness of regulated industries.Alweendo said it was important for the public to know where to go something in the financial industry went wrong.Information such as statistics, cross-sectional marketing data and the like will be shared, he elaborated.The information will be used only for performing regulatory and supervisory functions by the two regulators, any other use must be agreed upon by the party who provided the information.Alweendo pointed out the agreement was entirely voluntary and created no enforceable legal obligations.The two institutions are also working on a joint draft for anti-money laundering legislation, Alweendo said.According the BON Governor, Tom Alweendo, of particular importance was the duty upon both regulators to alert each other on developments in their respective industries that may impact the financial systems. He said the MoU will enable both parties to enhance their readiness to act in a timeous manner to mitigate systemic economic risks and thus to ensure the financial soundness of regulated industries. Alweendo said it was important for the public to know where to go something in the financial industry went wrong. Information such as statistics, cross-sectional marketing data and the like will be shared, he elaborated. The information will be used only for performing regulatory and supervisory functions by the two regulators, any other use must be agreed upon by the party who provided the information. Alweendo pointed out the agreement was entirely voluntary and created no enforceable legal obligations. The two institutions are also working on a joint draft for anti-money laundering legislation, Alweendo said.