25 Jan 2022

Parliament on Monday passed the Financial Intelligence Bill which seeks to align local laws to the recommendations of the Financial Action Task Force (FATF) aimed at combating money laundering and financing terrorism.

Supporting the bill,  Vice President and Boteti West MP, Mr Slumber Tsogwane said the law was a welcomed development as the country was not yet free from possible grey listing by FATF given the recommendations that needed to be addressed.

He said the Financial Intelligence Bill and other pieces of legislation to be discussed during the Emergency Parliament session were crucial as the country was not out of the woods yet.

Mr Tsogwane also said the bill would add value as the country had embarked on the fourth Industrial Revolution, noting that it would enhance trade between Botswana and other countries.

The vice president argued that it was important for the country to pass all necessary bills on time and to ensure that they were implemented.

He welcomed the establishment of the national coordinating committee on financial intelligence and its composition as outlined in the legislation.

He also welcomed the Extradition (Amendment) Bill, saying it would speed up the extradition of criminals who had sought refuge in other countries after committing crimes in Botswana.

For his part, MP for Tonota, Mr Pono Moatlhodi said the grey listing had negatively affected the country’s status in the international community as the country was known for its prudent financial management and political stability.

He said amending existing legislations and introducing others would propel the country up the ladder as well as to lure investors and subsequently reduce unemployment.

Selebi Phikwe West MP, Mr Dithapelo Keorapetse said although the FATF had removed Botswana from the grey listing, the country remained blacklisted by the European Union.

He said the aim of the Financial Intelligence Bill was to curb financial crimes such as money laundering, tax evasion, embezzlement and racketeering.

He said despite the legislation, financial crimes continued mainly because of lenient charges for perpetrators.

He said Botswana was used as a route for illicit financial flows where money stolen from other countries passed through the local financial institutions before reaching their final destinations in other parts of the world.

MP Keorapetse further said he was worried by the composition of the national coordinating committee on financial intelligence and its independence.

He said it should not be chaired by the Permanent Secretary to the President, but that members should rather be selected by Parliament.

The Selebi Phikwe West MP was also worried that some clauses, such as Clause 44, could be used to silence political opponents.

He said although there was a Parliamentary Committee on Statutory Bodies, its role was only limited to financial statements, adding that there should be an oversight committee to ensure the committee carried out its mandate as outlined in the law.

MP Keorapetse said he was afraid another agency similar in operations to the Directorate of Intelligence and Security Services (DISS) would be born, which operated outside the law.

He said the Directorate on Corruption and Economic Crime (DCEC) should also be amended to make it independent and fully resourced. ENDS