Compliance with AML/CFT & P Obligations during the COVID-19 Lockdown IN Botswana

April 23, 2020

NBFIRA 3/3/4 -VI (05)

To: AML/CFT Compliance Officers (AMLCOs) - Non-Bank Financial Institutions (“NBFIs”)

RE: COMPLIANCE WITH AML/CFT & P OBLIGATIONS DURING THE COVID-19 LOCKDOWN IN BOTSWANA

1. We refer to the captioned subject matter.

2. The Coronavirus disease (COVID-19) has become a global pandemic as declared by the World Health Organisation (WHO) and its rapid spread globally has since called for measures to be taken to manage the spread of the virus, which include a national lockdown and a declaration of state of emergency in Botswana. The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) is aware of the global pandemic as well as the impacts of COVID-19 which have affected the operations of businesses,   markets locally and globally and the economy at large.

3.  The NBFIRA hereby reassures NBFIs of its awareness and understanding of the challenges and risks facing NBFIs in providing financial services in a normal way in the current situation, and of the appropriate actions to take especially with regards to compliance with obligations as specified parties in terms of the Financial Intelligence Act 2019 (“the FI Act”) and international standards.

4. The NBFIRA further seeks to caution NBFIs to remain vigilant as criminals and terrorists may seek to exploit gaps and weaknesses in national anti-money laundering/counter-financing of terrorism and proliferation (AML/CFT & P) systems while they assume resources are focused elsewhere. It has been observed by international bodies that during this period criminals are taking advantage of the COVID-19 pandemic to carry out financial fraud and exploitation scams, including advertising and trafficking in counterfeit medicines, offering fraudulent investment opportunities, and engaging in phishing schemes that prey on virus-related fears. Malicious or fraudulent cybercrimes, fundraising for fake charities, and various medical scams targeting innocent victims are likely to increase, with criminals attempting to profit from the pandemic by exploiting people in urgent need of care and the goodwill of the general public and spreading misinformation about COVID-19.

5. NBFIRA is therefore alerting NBFIs of these, to be vigilant of similar, scams, it is on this basis that NBFIRA reiterate that NBFIs must continue to improve their AML/CFT&P systems by addressing any identified deficiencies and apply effective risk-based procedures to mitigate and manage the identified and emerging risks and be able to detect and report suspicious activities.

6. The call by NBFIRA to NBFIs to improve on their AML/CFT&P compliance programmes is consistent with the message issued by the Financial Action Task Force in its advisory update on April 1st, 2020. For more information, NBFIs are encouraged to consult the advisory on http://www.fatf-gafi.org/publications/fatfgeneral/documents/statement-co...

7. The NBFIRA stands ready to provide further AML/CFT & P guidance including prevailing risks to support the current global efforts to tackle the COVID 19 crisis and its effects, and welcomes feedback from all NBFIs.

Yours sincerely,

_________________

Sriram Gade (Mr)

ACTING CEO