04 Jul 2019

There was no mutual evaluation review conducted in 2018 to assess Botswana’s compliance to international standards for anti-money laundering and counter financing of terrorism. 

Responding to a question on July 3, Minister of Finance and Economic Development Mr Kenneth Matambo said as such there was no report

He said the report that was available in the ministry website under the Financial Intelligence Agency was for the 2017 assessment. 

He explained that the Eastern and Southern Africa Anti-Money Laundering Group had in 2017 assessed Botswana for compliance with international standards for anti-money laundering and counter financing of terrorism and published a report in its website. 

Following the mutual evaluation review, Botswana was placed under a one-year observation period in which it is to improve its technical compliance and effective implementation, he said. 

Mr Matambo pointed out that at an October 2018 meeting of the Finance Action Task Force, a decision was taken to issue and place a public statement on its website to the effect that Botswana’s anti-money laundering and counter financing of terrorism system had strategic deficiencies. 

In addition, he said an action plan was developed in consultation with Botswana to address the identified deficiencies. 

He further explained that Botswana was currently implementing the plan and providing progress reports to the task force’s International Cooperation Review Group three times a year. 

Minister Matambo clarified that the publication of a statement by the task force to the effect that Botswana had anti-money laundering and counter financing of terrorism strategic deficiencies may have unintended consequences. 

He said countries and financial institutions were not expected to act on the published information. 

Mr Matambo explained that the task force did not call for application of enhanced due diligence for countries in the observation list, but said it would appear some countries or financial institutions were applying enhanced due-diligence on financial transactions emanating from Botswana. 

Minister Matambo informed Parliament that the first round of mutual evaluation review for Botswana was conducted in 2007. 

He said the 2017 report was a result of the second round of mutual evaluation exercise. 

Specially Elected MP, Mr Mephato Reatile had asked the minister to state the implications of the results of the 2017 mutual evaluation report on Botswana, according to which the country had maintained a consistently low performance in effectiveness and technical compliance ratings. 

MP Reatile had also wanted to know whether the 2018 anti-money laundering and counter-terrorism financing measures evaluation had been conducted and if the report was available to the public. Ends