Govt optimistic of greylisting removal
Mbongeni Mguni | Monday September 13, 2021 06:10
The FATF, the world’s leading multinational anti-money laundering agency, placed Botswana on its greylist in 2018 citing deficiencies in its money laundering structures, leading the European Union to place the country on a blacklist in 2019.
The listing increases the cost of local financial institutions doing business with international banks and other organisations due to the higher due diligence that will be applied to them. There are also delays in funds being transferred to and from Botswana, due to the need for greater due diligence.
On Tuesday, Finance and Economic Development minister, Peggy Serame said an on-site assessment by the FATF in late August, as well as earlier the progress noted at the organisation’s June plenary, had provided hope that the country would be exiting the adverse listings next month.
“The FATF will write a report for the meeting in October and that will be looked at and a decision taken on whether we have done enough to be removed from the greylist,” the minister said in a televised address. “We are waiting with hope because last time the FATF said the results are showing in what we have done and that while they don’t expect perfection, they see the progress. “They also said where we may be short such as in expertise, they are willing to come and help us. “We expect that in October we will have positive news.”
She said this week’s Council of Minister’s meeting of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) had also noted Botswana’s progress. ESAAMLG’s adverse findings in 2017 led to the FATF and EU listings.
Serame said since the initial listing, Botswana had passed 25 pieces of legislation in 2018 and six more after that, demonstrating the political will to removing the country from the negative listings. In 2019, cabinet also approved the National Anti-Monetary Laundering/Combatting the Financing of Terrorism and Countering Proliferation strategy.
In the recently ended Winter Parliament, legislators also amended the Financial Intelligence Act to provide for the disclosure of beneficial ownership, allowing regulators to look beyond company directors and shareholders when determining the ownership of entities.
“It’s not just about getting out of the greylist but also as a country, we have to make sure our economy is in such a way that investors when they come in, their funds are safe,” Serame said.
Botswana’s negative listing by the global bodies has dulled the country’s much-hailed investment climate and carefully curated brand as the Jewel of Africa, at a time when COVID-19 is already depressing the economy and countries’ competitiveness.