Arysteq Asset Management (Arysteq) says it has not observed any significant changes in local or regional capital markets or the Namibia dollar, despite the country having been greylisted.
Namibia was greylisted by the Financial Action Task Force’s (FATF) Plenary last month and placed under increased monitoring due to concerns over effective implementation and compliance with international anti-money laundering (AML), combating the financing of terrorism (CFT), and combating proliferation financing (CPF) standards.
According to the Financial Intelligence Centre, Namibia was found lacking in AML/CFT/CPF effectiveness in six of the 11 immediate outcomes assessed regarding effectiveness.
The asset manager said it found little evidence and reports of major negative implications on client portfolios and the administration of funds in South Africa and expected the same to spiral to Namibia.
“We specifically observed and enquired as to the protocols and preparedness of our service providers in South Africa, with specific focus on the impact of South Africa’s greylisting approximately 12 months ago,” Arysteq said.
Arysteq said it anticipates minimal impact on client portfolios but acknowledged the possibility of additional due diligence requirements.
“We expect minimal impact on our client portfolios, but may, to an extent, be required to do additional enhanced due diligence where necessary due to the current listing.”
While maintaining a vigilant stance, Arysteq highlighted its ongoing engagement with the Namibia Financial Institutions Supervisory Authority (NAMFISA) to ensure compliance with industry regulations, while committing to reviewing anti-money laundering policies and procedures to align with current legislation.
“We continue to review our anti-money laundering policies and procedures to further ensure that they are aligned with the current legislation. This is all possible as we have an in-house risk and compliance department at our premises in Windhoek,” the firm said.
Arysteq said it had prepared for compliance and regulatory impacts resulting from the greylisting in Namibia.
“We have therefore placed ourselves in a prepared position for the potential compliance and regulatory impacts of the current greylisting in Namibia. It is also important to note that since the announcement, we have not noticed any noticeable adjustments in local or regional capital markets or the Namibia dollar,” the asset manager said.
The firm highlighted the proactive measures it had taken in anticipation of potential greylisting.
“Due to the expectation of a potential greylisting, we proactively assessed the possible effects that this may have on Namibia. Due to the changes in South Africa and our indirect exposure there, we at that time already increased due diligence and compliance procedures to comply with our South African counterparts and service providers,” it said.
Before the announcement, Arysteq highlighted its proactive approach to engaging stakeholders at various levels to address the potential implications of Namibia’s greylisting.
“Prior to this announcement, we have engaged in numerous consultations regarding the potential greylisting of Namibia at the board, audit and risk committee, senior management level, as well as with various stakeholders,” it said.
The International Monetary Fund notes that FATF greylisting negatively impacts up to 6% of a listed country’s GDP, while entities engaging with Namibia may also be required to conduct enhanced due diligence, leading to increased costs and scrutiny.
