NAMFISA and Compliance with Anti-Money Laundering Laws
NAMFISA is the official supervisory authority for Anti-Money Laundering (AML), Combatting the Financing of Terrorism (CFT), and Combatting Proliferation Financing (CPF) for sectors like capital markets, insurers, collective investment schemes, and microlenders. This role is based on Section 35 of the Financial Intelligence Act (FIA), 2012 and the NAMFISA Act, 2001.
Why Compliance Matters
The Financial Action Task Force (FATF) recommends strong, fair penalties for institutions and their management that fail to comply with AML/CFT/CPF laws. These requirements include KYC (Know Your Customer) checks, monitoring of transactions, and reporting of suspicious or large cash transactions.
Failure to comply can:
Types of Offences under the FIAOffences are grouped into five categories:
1. Administrative – Failure in client identification, risk assessment, due diligence, etc.
2. Records – Tampering with or failing to keep/access required records.
3. Reporting – Not reporting large or suspicious transactions.
4. Disclosure – Tipping off or misusing confidential information.
5. Directives – Ignoring directives or obstructing NAMFISA officials.
Penalties can include up to N$100 million in fines or 30 years in prison, or both.
Failure to submit compliance reports to NAMFISA can also result in up to N$10 million fine or 10 years imprisonment. Penalties may also apply to NAMFISA itself if it fails in its supervisory duties.
1. Administrative – Failure in client identification, risk assessment, due diligence, etc.
2. Records – Tampering with or failing to keep/access required records.
3. Reporting – Not reporting large or suspicious transactions.
4. Disclosure – Tipping off or misusing confidential information.
5. Directives – Ignoring directives or obstructing NAMFISA officials.
Penalties can include up to N$100 million in fines or 30 years in prison, or both.
Failure to submit compliance reports to NAMFISA can also result in up to N$10 million fine or 10 years imprisonment. Penalties may also apply to NAMFISA itself if it fails in its supervisory duties.
Before Criminal Action: Alternative MeasuresNAMFISA may first use non-criminal options:
1. Directives – Instructions to take action or stop non-compliant activities..
2. Administrative Penalties – Includes cautions, business restrictions, licence suspensions, and fines up to N$10 million.
3. Court Action – To force compliance or clarify legal obligations.
1. Directives – Instructions to take action or stop non-compliant activities..
2. Administrative Penalties – Includes cautions, business restrictions, licence suspensions, and fines up to N$10 million.
3. Court Action – To force compliance or clarify legal obligations.
