Open Day on "Building a Strong Leadership and Culture of Anti-Money Laundering and Countering the Financing of Terrorism & Proliferation (AML/CFTP)".

PRESS RELEASE

 AML/CFTP issues should be inherent in the strategic focus of NBFI’s.

 NBFIs implored to infuse combatting money laundering and the financing of Terrorism & Proliferation into their corporate culture

 NBFIRA committed to countering Money Laundering and the financing of terrorism and proliferation in the NBFI sector

Botswana: the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) implores regulated entities to build a strong corporate leadership and culture of mitigating and addressing money laundering and the financing of terrorism and proliferation.

The Authority plays a supervisory role in ensuring the Non-Bank Financial Institutions (NBFI) sector’s compliance to local laws and international best practices on the globally conspicuous issue of Anti-Money Laundering and Countering the Financing of Terrorism and Proliferation (AML/CFTP).

“We implore regulated entities to be adaptive and ensure that their corporate leadership and culture infuse their commitment as a sector to proactively tackle emerging financial risks, in particular money laundering and the financing of terrorism & proliferation”, said Sriram Gade, Deputy CEO of Regulatory.

Efforts to combat Money Laundering and the Financing of Terrorism and its Proliferation have been heightened not only in Botswana but internationally as these are currently at the heart of contemporary challenges facing financial systems across the globe. Gade added that tackling this vice within the NBFI sector will require decisive, diligent and visible leadership not only from the Authority but also from regulated entities.

NBFIRA is mandated to effectively and efficiently supervise the NBFI sector in line with international best practices and with the purpose of contributing toward the financial stability of the country.

“It is with this goal in sight that we not only supervise and regulate the NBFI sector but we also have an obligation to enhance your awareness of pertinent issues, as we are doing today. All this is done to facilitate the Authority’s objective of deterring and reducing financial crime and ensuring the safety and soundness of the sector.” Said Gade.

The 2017 Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Mutual Evaluation Report identified some deficiencies in Botswana’s safety measures against money laundering and financing of terrorism. The Report recommended specific actions for Botswana to implement in order to improve its AML/CFT system in line with international best practice. This necessitated a national risk assessment to identify sectors within Botswana which pose a high AML/CFTP risk.

In line with this, the Government of Botswana and the Financial Action Task Force (FATF) have agreed to an Action Plan that sets out in clear terms the action items, which must be completed by different stakeholders in Botswana, both in the public and private sectors, to overcome the identified strategic AML/CFT deficiencies. Botswana has also provided high-level political commitment to remedy the situation. The Authority is therefore part of the collaborative nationwide effort working toward the de-listing of Botswana by the FATF.

Gade elaborated on the Authority’s obligations in this regard which include strengthening its understanding of the money laundering and terrorism financing risks in the NBFI sector, as well as providing awareness and guidance to the regulated entities regarding the AML/CFT obligations that apply to them. He also expounded on the obligation of regulated entities which include improve their understanding of money laundering and terrorism financing risks through assessment of institutional money laundering and terrorism financing risks, as well as AML/CFT obligations by having adequate policies and procedures in place.

In his closing remarks, Mao Segage, Deputy CEO of Corporate Services acknowledged the critical role that NBFI’s play in the development the NBFI sector and implored them to continue to work tirelessly with the Authority to remedy the deficiencies in the sector’s controls for AML/CFTP.

Notes to Editor
About the Non-Bank Financial Institutions Regulatory Authority (NBFIRA)

Promulgated by an Act of Parliament in 2006, NBFIRA began its operations in 2008 and since then has achieved significant regulatory and supervisory milestones that have enabled the NBFI sector to grow and operate in line with international standards and best practices. The Authority oversees the NBFI sector, which in 2017 had assets worth P123 billion, accounting for 57% of total assets in the local financial system. In 2018, the sector comprised of 775 active entities. The Authority is governed by the NBFIRA Act (2016) which repealed the previous NBFIRA Act (2006).

For more information, please contact:
Boa M. Chombah
Head, Communications & International Affairs
Tel: +267 310 2595 / 368 6100
Email: bchombah@nbfira.org.bw