Adhere to anti-money laundering to combat terrorism -Sriram Gade
Gaborone, Botswana (PANA) Botswana's Deputy Chief Executive Officer of Non-Bank Financial Institutions Regulatory Authority (NBFIRA) Sriram Gade has called on the public to adhere to anti-money laundering measures to combat the threats of terrorism.
Gade, who was speaking at an NBFIRA Open Day in the capital city of Gaborone on Friday, said there were emerging risks that threatened the stability of the world’s financial system worldwide, and Botswana was no exception.
“Efforts to combat money laundering and the financing of terrorism and its proliferation have been heightened not only in Botswana but also internationally as these are currently at the heart of contemporary challenges facing financial systems across the globe.
“Tackling this vice within the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) sector will require decisive, diligent and visible leadership not only from us as the regulating authority but also yourselves,” said Gade.
He says in 2017, the Eastern and Southern Africa Anti-money Laundering Group (ESAAMLG) mutual evaluation report identified some deficiencies in Botswana’s safety measures against money laundering and financing of terrorism.
The report recommended specific actions for Botswana to implement to improve its Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) system in line with international best practice.
The report said Botswana was alleged to have certain sectors within its economy that were identified as having a high AML/CFTP risk.
The Botswana government and Financial Action Task Force (FATF) have agreed on an action plan where Botswana has provided a high level political commitment.
The action plan sets out in clear terms measures that must be taken by different stakeholders in Botswana, both in the public and private sectors, in overcoming the identified strategic AML/CFT deficiencies.
The NBFIRA, promulgated by an Act of the Botswana parliament in 2006, began its operations in 2008 and has since then achieved significant regulatory and supervisory milestones that have enabled the NBFI sector to grow and operate in line with international standards and best practices.
The Authority oversees the NBFI sector, which in 2017 had assets worth about US$12 billion, accounting for 57 percent of total assets in the local financial system.
In 2018, the sector comprised 775 active entities. The Authority is governed by the NBFIRA Act (2016) which repealed the previous NBFIRA Act (2006), the report stated.
-0- PANA MS/RA 23Feb2019
