Saturday, July 31, 2021

Botswana makes progress with grey listing

Botswana is close to being compliant in closing the strategic deficiencies that made it prone to financial crimes.

According to the latest update from Financial Action Task Force (FATF), though Botswana remains jurisdictions with strategic deficiencies, the FATF made the initial determination that Botswana has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of Botswana’s anti-money laundering and combating of the financing of terrorism (AML/CFT) reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future.

FAFT says the country has made the  key reforms, which include developing a comprehensive national AML/CFT strategy and policy informed by national risk assessment results; developing risk-based supervision and monitoring programmes; and improving the dissemination and use of financial intelligence by the FIU and others to identify and investigate ML cases. 

“The FATF will continue to monitor the COVID-19 situation and conduct an on-site visit at the earliest possible date,” the organisation said.

In 2018, the conservative Botswana government was stunned by FAFT when it was listed alongside countries that do not comply with (AML/CFT). The country was later flagged by the European Union Commission in March 2019 for lacking strategic deficiencies in  AML/CFT regulations.

Since then, Botswana made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime, passing series of laws to plug deficiencies. 

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