Namibia has been added to the European Commission’s updated list of high-risk jurisdictions for anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks.

This designation places Namibia alongside several other nations, including Algeria, Angola, Côte d’Ivoire, Kenya, and Venezuela. The update to this list was made on 10 June.

The EU Delegation to Namibia, in a statement, said this decision is a direct consequence of the Financial Action Task Force (FATF)’s deliberations at its February 2024 Plenary Meeting, which resulted in Namibia’s inclusion on the FATF “grey list” due to identified strategic deficiencies.

“The EU is legally bound to consider listing any FATF-listed country. The European Commission’s decision is subject to scrutiny by the European Parliament and European Council of Ministers within the coming month. If approved, the list will enter into force 20 days after publication in the EU Official Journal,” they added.

They said once in effect, banks and financial institutions in the EU27 will be required to apply enhanced due diligence measures when conducting financial transactions involving Namibia. It is important to note that this listing does not amount to sanctions and does not prevent Namibia from accessing EU trade, investment, or cooperation funding.

“The listing is not a political judgment nor a punitive action; it is a procedural requirement to ensure proper financial vigilance. Namibia remains a valued partner of the European Union,” they said.

They highlighted that in mid-2024, the EU Delegation to Namibia positively replied to a request by Namibian authorities to assist in the implementation of the Action Plan required by the FATF. Technical Assistance and expert exchanges are ongoing between EU experts and officials from the Namibia Financial Intelligence Centre (FIC), Namibia Revenue Agency, Customs Authority, Namibian Police, and other authorities involved in the enforcement of Namibia’s AML and CTF framework.

“These initiatives aim to support Namibia in fulfilling its FATF Action Plan and ultimately pave the way for removal from both the FATF greylist and the EU high-risk list,” they emphasised.

European Union Ambassador to Namibia, H.E. Ana Beatrix Martins, reaffirmed the EU’s commitment to working closely with the Namibian authorities.

“The European Union values its strong partnership with Namibia. We are actively supporting Namibia’s efforts to strengthen its anti-money laundering framework through dedicated technical assistance, workshops, and training activities between EU and Namibian experts from government, regulators, and the financial sector,” she said.

She added that they share the same goal: to work towards a more transparent, secure, and trusted global financial system that protects us from abuse by criminals, terrorists, and corruption.

The EU further said that to be delisted, Namibia will need to demonstrate sustained progress in implementing the FATF Action Plan, which includes measures to strengthen the effectiveness of its AML/CFT regime.

“Once Namibia is removed from the FATF grey list, the European Commission will assess the reforms undertaken in line with EU-specific rules for delisting. We encourage continued open dialogue and technical engagement with all stakeholders, both public and private, in Namibia,” they concluded.