Namibia added to high-risk list for financial crime by European Commission

The European Commission has added Namibia to a list of jurisdictions deemed ‘high risk’ for anti-money laundering and counter-terrorism financing frameworks as of 10 June.

This could mean that financial institutions within the EU27 will soon be required extra caution when conducting transactions involving Namibia.

The decision will need to be ratified by the European Parliament and European Council of Ministers within the coming month. If approved, it will then be published in the European Union (EU) official journal and come into effect 20 days later.

“This listing does not amount to sanctions and does not prevent Namibia from accessing EU trade, investment or cooperation funding,” the EU delegation to Namibia says in a statement on Thursday, adding that “Namibia remains a valued partner of the European Union.”

Namibia’s new categorisation is due to the Financial Action Task Force (FATF) identifying strategic deficiencies and adding Namibia to its ‘grey-list’ in February.

The EU is required to consider listing countries identified by the FATF as high-risk. To reverse the listing, Namibia will have to demonstrate sustained progress in implementing the FATF action plan.

Once removed from the grey-list, the European Commission will re-evaluate the classification.

EU ambassador to Namibia Ana-Beatriz Martins says the EU plans to work closely with Namibia to reach these goals.

“The European Union values its strong partnership with Namibia. We are actively supporting Namibia’s efforts to strengthen its anti-money laundering framework through dedicated technical assistance, workshops and training activities between EU and Namibian experts from government, regulators and financial sector,” she says.

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