02 Sep 2021

Parliament has approved amendment of the Financial Intelligence Act to make provision for Botswana to keep information or records of ‘Beneficial Owner’ information for transparency and effective exchange of tax information.

Amendment of the act follows a review of the country’s legal and administrative framework by the Global Forum on Transparency and Exchange of Information for tax purposes to ascertain that the country effectively exchanged tax information with other countries.

The amendment will ensure sufficient keeping of records on beneficial owners and monitoring by financial institutions regulators to ensure the revenue authority responds timely to requests for information by other countries.

To ensure Botswana was compliant with international standards, the term ‘beneficial owner’ has been redefined in accordance with the Financial Action Task Force (FATF) standards.

Finance and economic development minister, Ms Peggy Serame recently stated that in adopting a new definition, Botswana would now satisfy both the FATF and Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) standards.

Thus, the amendment would enable Botswana to be in a position to verify and identify all beneficial owners of all financial transactions taking place in the country, she added.

Ms Serame the new law would regularise Botswana’s compliance with Global Forum requirements as well as FATF standard by the October deadline. ENDS