Namibia’s Race to Exit the Grey List: Progress, Pressure and Politics

Namibia has made remarkable progress in cleaning up its financial compliance record.

It has successfully addressed 11 of the 13 strategic deficiencies identified by the Financial Action Task Force (FATF), a global watchdog on money laundering and terrorism financing.

The country now faces a six-month window to resolve the remaining two issues before the FATF’s May 2026 review, according to the Financial Intelligence Centre (FIC).

This marks a decisive step toward Namibia’s removal from the FATF’s ‘grey list’.

It was placed on the list in February 2024 because of gaps in enforcing anti-money laundering (AML), counter-terrorism financing (CTF), and anti-proliferation measures.

WHAT IT MEANS

The grey list – often dubbed the ‘dirty-money list’ – is not a sanction, but it carries heavy economic and reputational costs.

Grey-listed countries are subjected to increased international monitoring, with global banks and investors treating them as high-risk jurisdictions.

The International Monetary Fund (IMF) notes that countries on the grey list can experience a 7.6% reduction in foreign capital inflows.

This makes cross-border banking and investment costlier and slower.

For Namibia, being on the list can affect trade finance, foreign direct investment, and even donor confidence, factors vital to an economy reliant on natural resources and regional trade integration.

THE ROAD AHEAD

FIC director Bryan Eiseb confirmed that Namibia has resolved most deficiencies within the prescribed timelines and is ahead of schedule.

The remaining issues concern:

1. Increasing investigations and prosecutions for money-laundering offences; and
2. Strengthening the ability to identify and investigate terrorist financing activities.

“These last two deficiencies are already being addressed,” said Eiseb.

He added that Namibia’s progress reflects Africa’s growing commitment to combat illicit financial flows and align with international standards.

AFRICAN POSITIVES

Namibia’s momentum mirrors the success of South Africa, Nigeria, Mozambique and Burkina Faso, which were delisted from FATF’s grey list this month.

FATF president Elisa de Anda Madrazo described this as “a positive story for the continent of Africa”.

South Africa’s delisting followed a sweeping reform effort that enhanced financial intelligence, beneficial ownership transparency, and inter-agency collaboration.

Nigeria, meanwhile, strengthened coordination across its anti-corruption and financial-monitoring institutions, restoring investor confidence.

These successes show that African nations can and do rise to global compliance challenges, often under intense scrutiny.

POLITICISATION AND POWER

However, while Namibia’s near-exit is cause for celebration, it also reignites debate about the politicisation of global financial surveillance.

Critics argue that institutions like the FATF, though technical in design, are often shaped by geopolitical power imbalances.

Developing nations, particularly in Africa, are disproportionately grey-listed despite having smaller financial systems.

In contrast, major Western financial centres, where vast sums of illicit money circulate through tax havens and shell companies, rarely face the same punitive oversight.

Scholars such as political scientist Jason Sharman (2011), and John Christensen and Richard Murphy (2020), have long argued that financial transparency standards are applied unevenly, reflecting global hierarchies rather than purely technical criteria.

The weaponisation of financial compliance has, in some cases, been used to restrict access to international markets and discipline states through reputational means.

IMPLICATIONS

For Namibia, exiting the FATF grey list is not merely about compliance, it is about reclaiming economic credibility.

Removal would ease international transactions, attract new investment, and reduce the cost of capital.

It could also restore confidence among development partners and multilateral financiers.

Conversely, prolonged grey-listing risks undermining the goals of Namibia’s Harambee Prosperity Plan II and Vision 2030, both of which rely on a strong and transparent financial system.

COMPLIANCE AND SOVEREIGNTY

Namibia’s near-exit from the FATF grey list underscores both institutional resilience and the complex politics of global finance.

As Africa’s biggest economies, South Africa and Nigeria have just demonstrated, delisting is possible with coordinated reforms.

But Namibia’s case also invites deeper reflection: compliance with global standards must not become a form of economic subordination.

A fair international system should uphold financial integrity without reinforcing inequality or geopolitical dependence.

If Namibia completes its final reforms by May 2026, it will not only safeguard its financial reputation but also reaffirm Africa’s growing capacity to define its own narrative – one of accountability, sovereignty, and economic justice.

– Lot Ndamanomhata is graduate of public management, journalism and communication. This article is written entirely in his personal capacity.

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