Insurance Institute of Botswana Seminar on AML
The Insurance Institute of Botswana (IIB) held a comprehensive seminar on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) on 27th February 2019. This was necessitated by the recent amendment to the Financial Intelligence Act and the other recent relevant legislative changes.
The seminar sought to inform and provide guidance to the broader financial services sector including banks and non-bank financial services in addition to the insurance sector. This was represented by speakers from a broad range of institutions both local and regional.
Leonard Moeng, Principal AML/CFT Officer at Non-Bank Financial Institutions Regulatory Authority (NBFIRA) presented on Understanding the Importance of Regulatory Expectations. Moeng expounded on the Financial Action Task Force’s (FATF) Mutual Evaluation Report on Botswana and its implications. These include Botswana being subject to enhanced monitoring under the International Cooperation Review Group (ICRG) of the FATF, as well as a delay in international transactions.
He also explained deficiencies that NBFIRA was found to have, the subsequent actions the Authority has undertaken to correct the deficiencies as well as requirements for Non-Bank Financial Institutions (NBFIs).
In his closing remarks, Oaitse M. Ramasedi, Chief Executive Officer of NBFIRA highlighted the timeliness of the event as AML/CFT issues have gained prominence of recent.
“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. Tackling this vice within our local financial sector will require decisive, diligent and visible leadership not only from the regulatory bodies but also from regulated entities across the board, under the guidance of the Financial Intelligence Agency” said Ramasedi.
Expounding on the Authority’s obligations to address financial crime within the NBFI sector as provided for by the NBFIRA Act 2016 and the Financial Intelligence Act, Ramasedi explained that in 2017, the NBFI sector’s assets of P123 billion accounted for 57% of total assets in our local financial system.
“It therefore goes without saying, that the scope and consequent impact of the NBFI sector on our local financial system is significant. It is with this reality and a great sense of responsibility that the Authority engages issues of AML/CFTP and all other issues of financial crime within the NBFI sector with utmost seriousness”, he said.
In closing, Ramasedi thanked the IIB for such a timely discourse and the participants for their insightful presentations and engaging deliberations. He implored entities to be adaptive and demonstrate their leadership and commitment to proactively tackle emerging financial risks, in particular money laundering and the financing of terrorism & proliferation.
