21 Jun 2015

Members of Ntlo ya Dikgosi have been urged to encourage their subjects to be cautious and report any suspicious cases of money laundering. 

Briefing dikgosi on money laundering and funding of terrorism, the director of Financial Intelligence Agency (FIA), Dr Abraham Sethibe, said purchase of land and cattle could be used for money laundering as transactions were done through cash rather than cheques or electronic fund transfers. 

He said money laundering happens where one person, after accruing cash either through corruption, robbery or sale of drugs, purchases a piece of land and later sells it to legitimise his money. He said people should be asked to state where and how they accrued their income and cash transactions should be avoided. 

He said any suspicious cases should be reported to either his office or the police, adding that they work with other agencies such as the Directorate of Corruption and Economic Crime , Directorate of Intelligence and Security Services , Directorate of Public Prosecutions, Botswana Unified Revenue Services and Non-Banking Financial Institutions Regulatory Authority. He said failure to report a case attracts a fine of not less than P500 000. 

He said the economy stands to lose if Botswana fails to adhere to international practices and becomes a haven for money laundering and finance of terrorism activities adding that the country’s financial institutions might be blacklisted, making it difficult for Botswana to trade with other countries. 

Furthermore, Botswana might also fail to attract foreign direct investment, and said some countries have experienced this difficult situation.  Responding to the comments, Kgosi Mosadi of Balete said it was difficult to guard against land sales as they are either done through lawyers or people involved refuse to divulge correct information. 

Kgosi Monyamane of Kgalagadi North said since the FIA has realised Botswana is a cash-based economy, something has to be done to ensure all business owners have bank accounts and keep proper accounts to ensure they do not encourage money laundering and funding of terrorism activities. 

Kgosi Moipolai of North East said exorbitant bank charges discourage people from undertaking electronic fund transfer. ENDS