Business Reporter
IN line with efforts to avoid Namibia being greylisted by the Financial Action Task Force (FATF), Parliament this week issued new changes to the Close Corporations (CC) Amendment Act Bill, which will impose a fine not exceeding N$10 million and/or 10 years’ imprisonment for individuals/companies knowingly withholding information about the beneficial owners of a CC.
Lucia Iipumbu, Minister of Industrialisation & Trade, explained that the Ministry, through its implementing agency, the Business Intellectual Property Authority (BIPA), has embarked on the process of reviewing both the Close Corporations and the Companies Act.
She said that this process is progressing very well, with various stakeholder consultations having been conducted in a number of regions. The ministry projects that these consultations will conclude in mid-July 2023.
While the review process has already begun, Namibia underwent its second peer review/mutual evaluation by the Eastern and Southern African Anti-Money Laundering Group (ESAAMLG) and the Financial Action Task Force (FATF).
Iipumbu explained that the outcomes from the peer review necessitate a piecemeal amendment of the Act to avoid Namibia being greylisted.
“If Namibia is unable to demonstrate sufficient progress at the end of the 12-month period, the country may be escalated by the FATF for grey-listing, which Namibia should avoid at all costs as it will lead to a negative impact of up to 7% on the Gross Domestic Product,” Iipumbu warned.
The minister further added that there will be no new Foreign Direct Investments (FDIs) until removal from FATF grey-listing and until six months thereafter. Iipumbu also mentioned that there might be possible termination of, or extreme and costly enhanced due diligence measures on correspondent banking relationships with the Bank of Namibia and commercial banks operating in Namibia.
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