Greylisting has not severely impacted Namibia’s economy – FIC

By: Hertha Ekandjo

The Director of the Financial Intelligence Centre (FIC) Bryan Eiseb, has assured the nation that Namibia’s greylisting has not severely impacted the country’s economy.

Addressing concerns about the potential fallout from the greylisting, Eiseb explained that, since the country was added to the list, there has been no significant economic damage.

“Since the greylisting, we have not seen a severe economic impact,” Eiseb stated.

Namibia was grey-listed on 21 February 2024 by the World Bank’s Financial Action Task Force (FATF).

Eiseb explained that one of the main concerns was the effect on correspondent banking relationships with other jurisdictions, but, so far, these concerns have not materialized into major disruptions.

However, Eiseb warned that failing to address the necessary remedial actions in time could have more serious consequences.

“If we do not remediate the issues promptly, it could lead to Namibia being blacklisted, which would require more intensive due diligence, especially in foreign investments and correspondent banking relationships,” he said.

Despite these risks, Eiseb emphasized that Namibia is committed to addressing the issues and has received full support from the government.

He said the government has provided optimal support and political commitment to ensure that Namibia remediates these issues, adding that the country is on the right path to getting off the greylist.

Furthermore, Eiseb stressed that the focus is not just on meeting the requirements to exit greylisting but on implementing a sustainable and effective anti-money laundering regime.

“It’s not just about remediating action items; it’s about ensuring a robust anti-money laundering framework to protect our financial system and mitigate risks like money laundering, terrorism financing, and proliferation financing,” he explained.

Regarding the broader economic impact of greylisting, Eiseb reiterated that, while the situation is concerning, the economic effects have not been as severe as initially feared.

However, he underscored the importance of continuing efforts to mitigate the risks and protect Namibia’s economic future.