30 Jan 2022

Parliament on Thursday learnt that the amendment of the Proceeds and Instrument of Crime Bill will strengthen and align the law to other Anti-money laundering and counter terrorism financing (AML/CTF) and anti-proliferation.

Presenting the proposed amendment, Minister of Defence Justice and Security, Mr Kagiso Mmusi said the proposals contained in the bill would align the act with the Financial Intelligence Act. He said it would empower investigators to freeze and seize proceeds and instruments of crime.

Supporting on the proposed bill, Selebi Phikwe West MP, Mr Dithapelo Keorapetse said the anticipated amendment was necessary as it intended to empower law enforcement officers to seize proceeds of crime.

He said sophisticated crime syndicates currently threatened the economy of the country and amendments would address loopholes that they used to carry out financial and economic crime.

Mr Keorapetse said the bill and other laws dealing with economic crime must focus on regulated institutions such as banks, micro lenders, car dealers, real estate agencies and law firms.

He said such institutions must be compelled to assist law enforcement officers with evidence so that goods or wealth accumulated through organised crime could be detected on time and suspected criminals investigated.He observed that some officials were rewarded through cash in the form of bribes to favour some people for services or tenders and that money received through such corrupt manner was laundered through property purchase.

Therefore, said Mr Keorapetse, said an obligation must be placed on regulated institutions to report suspicious transactions.

He said financial banks through the anti-money laundering regulations were already at an advanced stage as they always reported suspicious transactions.Mr Keorapetse said it was unfortunate that at a time when government was improving its legislation to fight corruption, counter financing of terrorism and money laundering, some local business were strictly transacting in cash they avoided any form of traceable business dealings.

He said they might be doing so to dodge paying tax, while some were even rumored to be saving in offshore markets, which was of no benefit to the country.

He said the bill must introduce a reporting mechanism, and that all business transactions done in cash must be registered.

MP Keorapetse said reports by Financial Action Task Force (FAFT) had shown that business transactions in Botswana were primarily done in cash payments.

He said a suspicious transaction must be well defined, adding that those who failed to report suspicious transactions must also face the music.

Furthermore, he revealed that as at March 31, 2021, the office of the Receiver, which was dealing with cases relating to proceeds of crime had executed 30 court orders, five of which ended in the courts which directed that suspected goods be given back to the owners. He said financial and economic crime challenges were increasing.

 Mr Keorapetse said the value of assets attached to the 30 court orders, which included money, residential properties, commercial properties, industrial, cattle, vehicles, equipment of agriculture and others were valued at over P189 million.

He said the bill must take into account that the office of the Receiver was not equipped with qualified personnel.

The office did not have valuers to determine the value of the confiscated movable property, he said.

Further it also relied on law enforcement officers from other government law enforcement departments, he added.

Mr Keorapetse said the office also had no security personnel to guard confiscated property hence some vandals destroyed some properties such as houses while the government was yet investigating. This tarnished evidence and cost the taxpayer a lot of money in restoration costs.

He also observed that registering cases before completing investigations also delayed completion of matters, with the result that impounded property was kept for lengthy periods, which became costly.Mr Keorapetse said Government was losing most cases because law enforcement tended to arrest people before carrying out proper investigations with the result that they ended up keeping impounded property for a long time.

He also said the office of the Receiver was also faced with lack of storage for impounded property, as the storage warehouse at the Directorate on Corruption and Economic Crime (DCEC) was reported to be congested.

Mr Keorapetse said the amendments to the bill focused on dealing with acquisition of property and money through crime and forfeiting goods acquired

Also supporting the motion, Ramotswa legislator, Mr Lefoko Moagi said there were instances where a dealer in a regulated commodity, would sell at less value than the recommended price, which raised eyebrows.

Therefore, Mr Moagi said consumers must be empowered with knowledge, to be able to expose such, as it might be a pointer to financial crime.

Mr Moagi also added that there were some businesses that were not using commercial banks to save their money. 

These raised suspicion tthey could be involved in financial crimes such as money laundering. He said there should be a clear paper trail for money coming in or going out of the country.He said in some cases, people were unable to account for property acquired overnight, which raised a possibility of money laundering.

Mr Moagi said law enforcement authorities and all units working in areas where there was potential for money laundering such as customs and exercise and Unified Revenue Services must be well equipped with advanced technology and knowledgeable personnel.

Serowe West MP, Mr Tshekedi Khama said the proposed amendments were a welcome development. However, Mr Khama was concerned that it appeared that currently financial transactions made through the banks were the only ones that were traceable.

Mr Khama said money launderers could not be brought to book due the inadequacy of the law.

Mr Khama said drug dealers and poachers took advantage of loopholes in the law to clean money illegal acquired. He further urged law enforcement officers to act accordingly to fight organised crime.

“My appeal is for our law to close all gaps that lead to money laundering. The bill is only scratching the surface,” he said.ENDS