Govt in bid to stem money laundering

GOVERNMENT yesterday introduced a bill to combat money laundering and clamp down on the unreported cross-border movement of large amounts of money.

Through the Financial Intelligence Bill, the Bank of Namibia would be given the muscle to collect, access and analyse financial intelligence data, freeze and even seize assets of suspicious institutions under investigation. Certain institutions, which may have the propensity to be used for money laundering purposes, would have to report to the central bank on their activities.CURBING ORGANISED CRIME The law would extend to a wide range of institutions and individuals, from legal practitioners, trust administrators and estate agents to banks and other financial institutions that invest money, car dealers, gambling places, money-lenders, accountants, listed companies and supervisory authorities that regulate them.Transfers of cash to or from Namibia above a prescribed limit would need authorisation from the Bank of Namibia.”Prevention of money laundering will in effect contribute towards the prevention of organised crime, corruption and the financing of terrorism, as criminals will have no place to hide their ill-gotten gains or gains intended to facilitate unlawful activities.Therefore, terrorism, organised crime and corruption are inextricably linked,” said Finance Minister Saara Kuugongelwa-Amadhila.The Minister said the bill came at a time when Namibia had seen many instances of corporate corruption, which had led to the loss of millions of dollars of taxpayers’ money.All institutions deemed accountable under the bill, would have to identify and keep records of their clients and any business transactions between them.Old clients would have to be identified within six months of the Act coming into law.Institutions listed in an annexure to the bill would be obliged to report to the Bank of Namibia on all “suspicious transactions” – which are defined as transactions above a threshold to be determined by the Bank.If the transaction appears “really suspicious”, the Bank would refer the case to NamPol for investigations.All electronic transfers of money within Namibia or across the borders above prescribed limits would also have to be promptly reported.”Monitoring financial transactions within the financial system, and the whole corporate environment in Namibia, will prevent financial crime and therefore contribute towards the financial stability of the country, which in itself is an incentive for investors and donor countries,” Kuugongelwa-Amadhila told Parliament.Supervisory bodies such as Namfisa, the Law Society and the Estate Agents Board would have to see to it that institutions under their supervision comply with the Act and report non-compliance to the BoN.The BoN’s financial unit would also have the powers to hold internal inquiries or hearings against institutions that do not comply with the act and fine minor violations.More serious violations which merit criminal prosecution are to be referred to the Office of the Prosecutor General.The proposed law further provides for the establishment of an Anti-Money Laundering Advisory Council to advise the Finance Minister on policies and measures to combat money laundering and future policy development.The council will consist of the Permanent Secretaries of the Ministries of Finance, Trade and Industry and Justice, the NamPol Inspector General, the Director of Intelligence Services, the CEO of the Namibia Financial Institutions Supervisory Authority (Namfisa), the President of the Bankers’ Association, a representative of an accountable institution and another from a supervisory body.The BoN’s financial intelligence unit may receive money from Parliament to carry out its activities.The bill is intended to work in tandem with the Prevention of Organised Crime Act passed in 2004, as well as the Anti-Corruption, Anti-Terrorism Activities and Drugs Control laws of 2003.Certain institutions, which may have the propensity to be used for money laundering purposes, would have to report to the central bank on their activities.CURBING ORGANISED CRIME The law would extend to a wide range of institutions and individuals, from legal practitioners, trust administrators and estate agents to banks and other financial institutions that invest money, car dealers, gambling places, money-lenders, accountants, listed companies and supervisory authorities that regulate them.Transfers of cash to or from Namibia above a prescribed limit would need authorisation from the Bank of Namibia.”Prevention of money laundering will in effect contribute towards the prevention of organised crime, corruption and the financing of terrorism, as criminals will have no place to hide their ill-gotten gains or gains intended to facilitate unlawful activities.Therefore, terrorism, organised crime and corruption are inextricably linked,” said Finance Minister Saara Kuugongelwa-Amadhila.The Minister said the bill came at a time when Namibia had seen many instances of corporate corruption, which had led to the loss of millions of dollars of taxpayers’ money.All institutions deemed accountable under the bill, would have to identify and keep records of their clients and any business transactions between them.Old clients would have to be identified within six months of the Act coming into law. Institutions listed in an annexure to the bill would be obliged to report to the Bank of Namibia on all “suspicious transactions” – which are defined as transactions above a threshold to be determined by the Bank.If the transaction appears “really suspicious”, the Bank would refer the case to NamPol for investigations.All electronic transfers of money within Namibia or across the borders above prescribed limits would also have to be promptly reported.”Monitoring financial transactions within the financial system, and the whole corporate environment in Namibia, will prevent financial crime and therefore contribute towards the financial stability of the country, which in itself is an incentive for investors and donor countries,” Kuugongelwa-Amadhila told Parliament.Supervisory bodies such as Namfisa, the Law Society and the Estate Agents Board would have to see to it that institutions under their supervision comply with the Act and report non-compliance to the BoN.The BoN’s financial unit would also have the powers to hold internal inquiries or hearings against institutions that do not comply with the act and fine minor violations.More serious violations which merit criminal prosecution are to be referred to the Office of the Prosecutor General.The proposed law further provides for the establishment of an Anti-Money Laundering Advisory Council to advise the Finance Minister on policies and measures to combat money laundering and future policy development.The council will consist of the Permanent Secretaries of the Ministries of Finance, Trade and Industry and Justice, the NamPol Inspector General, the Director of Intelligence Services, the CEO of the Namibia Financial Institutions Supervisory Authority (Namfisa), the President of the Bankers’ Association, a representative of an accountable institution and another from a supervisory body.The BoN’s financial intelligence unit may receive money from Parliament to carry out its activities.The bill is intended to work in tandem with the Prevention of Organised Crime Act passed in 2004, as well as the Anti-Corruption, Anti-Terrorism Activities and Drugs Control laws of 2003.