08 Nov 2022

Botswana is taking necessary steps to avert the risk of being grey listed by Financial Action Task Force (FATC) for the second time.

Speaking during the launch of the second National Risk Assessment (NRA) in Gaborone Monday, Permanent Secretary to the President (PSP), Ms Emmah Peloetlese said if properly executed it would assist the country to effectively implement international standards so as to avoid being grey listed.

“We need no reminder of some of the difficulties our country went through due to grey listing,” Ms Peloetletse said.

 She recalled that during the grey listing period, Botswana experienced delays in external payments because of enhanced due diligence imposed on all financial transactions.

In addition, there were fewer to no foreign direct investors due to low business confidence,  she said. 

PSP said the country’s trading competitive advantage as well as the entire economy were negatively affected.

Ms Peloetletse encouraged all stakeholders to double their efforts and invest resources in the assignment which commenced in September and due for completion next August.

“This NRA will help us as a country to prevent and combat money laundering, terrorism financing and proliferation and avoid our jurisdiction being used for commission of financial offences,” she said.

Ms Peloetletse, who doubles as National Coordinating Committee on Financial Intelligence chairperson, also  encouraged the team to finish the assessment within the stipulated timeframe and within budget.

She revealed that Botswana had built enough capacity internally to do its own assessment adding that the World Bank would be training officers on new modules.

Financial Intelligence Agency director general, Ms Bopelokgale Soko said Botswana was required to understand risks within its jurisdiction so as to put in place measures to combat them on the ground.

NRA consultant, Ms Susan Mangori said the assessment would look into threats and vulnerabilities as well as mitigation measures in place.

It would look into threats related to money laundering, national vulnerability, banking, securities sector, insurance sector, non-profit organisations, tax crime and proceeds and terrorism financing among others, she said.

Meant to identify, assess and understand the money laundering and terrorism financing risk to Botswana, the NRA will be conducted according to FATF standards. Ends