Namibia makes progress in addressing FATF Grey Listing

The Financial Action Task Force (FATF) placed Namibia on its Greylist due to deficiencies in anti-money laundering and counter-terrorism financing frameworks. This decision followed a mutual evaluation by the Eastern and Southern Africa Anti Money Laundering Group (ESAAMLG), which identified 72 recommended actions for Namibia to address. As of January 2024, Namibia had successfully implemented 59 of these actions, with 13 still requiring improvement.

The greylisting is a two-year monitoring period during which Namibia must demonstrate progress to avoid a potential FATF blacklist. While the greylisting could negatively impact the economy by reducing capital inflows and affecting GDP, Namibia’s strong macroeconomic fundamentals may help mitigate short-term effects. Investor perceptions remain generally positive, and financial institutions are preparing for increased compliance requirements.

To expedite its exit from the Greylist, Namibia plans to submit an earlier progress report to the FATF in October 2024.