11 Sep 2023

Money laundering, terrorism financing and proliferation financing (MLTFPF) pose a serious threat to economic growth and erode confidence in the integrity of financial systems. 

Outgoing president of Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Council of Ministers, Ms Peggy Serame, said this at the group’s council of ministers in Kasane recently. 

She said the region ran the risk of being greylisted as currently five states were in the red while three were under observation.

This was an indication of the challenges that some of the member states had complying with the Financial Action Task Force (FATF) Standards in the region, she said. 

“It may also mean that the region has weak systems to fight against money laundering, terrorism financing and proliferation financing which is not a desirable position,” she said. Ms Serame added that during Botswana’s tenure, the ESAAMLG task force had taken concrete steps to enhance cooperation and coordination among member states. 

The minister said the task force leveraged the strength of partnerships to develop strategies against MLTFPF. 

Among their successes was the enactment and enforcement of stringent legislation and regulatory frameworks across member states whereby through harmonised laws and regulations, they provided a solid legal foundation to combat money laundering and terrorism and proliferation financing activities.

Ms Serame said the ESAAMLG task force had conducted numerous training programmes and workshops focusing on enhancing the capabilities of the financial intelligence units, law enforcement agencies, and judicial bodies. 

She said collaboration with international partners had played a pivotal role in the fight against financial crimes because they actively engaged with global organisations, such as the Financial Action Task Force (FATF), and other regional bodies, which fostered information-sharing mechanisms and best practice exchanges. 

Ms Serame called on member countries to prioritise combat against MLTFPF in their national agendas.

She said the objective of the group’s Strategic Plan for the period 2024-2027 was to build capacity for implementation of the financial action task force standards in the region, focusing on assessment of the risks and adoption of the risk-based approach. 

The incoming president Prof Njuguna Ndungú, assured member states that Kenya would continue where Botswana had left and ensure that the region achieved its goals in fighting MLTFPF. 

He said the region strove to foster a culture of compliance and transparent transactions in order to maintain the integrity of ESAAMLG financial systems.

Justice ministyer Mr Machana Shamukuni said Chobe was honoured to have hosted the ESAAMLG meeting.

He said the meeting contributed to the economic activities of the district from hospitality and tourism to transport to food and entertainment. 

Mr Shamukuni said Botswana had proven to be an exceptional host of international meetings and thanked the government for continually promoting Botswana as such. Ends