The Financial Intelligence Centre (FIC), empowered by the Financial Intelligence Act (FIA), directed the freezing of 28 bank accounts totalling N $33.1 million during the 2023/2024 review period.
This marks a significant increase from the previous year, where 25 accounts with a combined value of N$15.4 million were restricted, reflecting a 105% rise.
The FIA authorises the FIC to instruct banks or any entity to freeze accounts suspected of holding proceeds of crime for up to 18 working days.
This period allows the FIC to conduct thorough investigations into the suspicious transactions and coordinate with law enforcement agencies (LEAs) to secure the funds.
The collaboration between the FIC and LEAs has been instrumental in these successful interventions.
Meanwhile, (FIC) achieved an unqualified audit opinion, with reserves increasing by 128% to N$44.3 million from N$19.3 million in the previous financial year.
Total assets nearly doubled, showing a 93% year-on-year increase.
For the period FIC conducted 49 on-site and 120 off-site compliance assessments, disseminated 357 intelligence reports, and intervened in 34 bank accounts, contributing N$31.1 million to capital tax raised.
Meanwhile in terms of Digital Transformation and Technological Advancement, FIC developed and implemented a Prioritisation Model for suspicious reports and introduced an Automated Supervision Tool and the UNSC Bot, significantly enhancing operational efficiency.
“This model, along with the introduction of an Automated Supervision Tool and the UNSC Bot, has significantly enhanced the FIC’s operational efficiency, allowing for more effective monitoring and analysis of financial activities,” says Bryan Eiseb, Director of FIC.
This comes as FIC on Wednesday officially launched its Annual Report for the 2023/2024 financial year.
Eiseb says the report highlights the significant strides made in enhancing the integrity of Namibia’s financial system, combatting financial crimes, and promoting transparency and accountability.
The 2023/2024 financial year was marked by numerous achievements, demonstrating the FIC’s unwavering commitment to its mandate.
Financial performance for the year was strong, with the FIC achieving an unqualified audit opinion.
“Total assets nearly doubled, showing a remarkable 93% year- over-year increase, driven by an increase in the liquidity pool held at the Bank of Namibia,” he noted.
Similarly, operational cash flows saw a substantial increase of N$24.7 million year-over-year, bolstered by increased grant funding and strong expense execution.
The FIC also made considerable progress in addressing mutual evaluation and legislative amendments.
Meanwhile, Eiseb said the government has demonstrated a high level of political commitment to addressing the FATF Action Plan, with a comprehensive approach involving all relevant institutions.
The first progress report is due in October 2024.
“The FIC, as the coordinating agency, will continue to engage with national AML/CFT/CPF stakeholders to ensure timely and effective implementation of the Action Plan, aiming to restore international confidence in Namibia’s financial system,” he said.
The Centre coordinated amendments to 19 laws and the promulgation of four new laws to address compliance deficiencies identified in previous evaluations.
This effort facilitated the remediation of 59 out of 72 Mutual Evaluation action items, demonstrating Namibia’s commitment to aligning with international standards and improving the effectiveness of its AML/CFT/CPF framework.
