IMELDA AMBONDO
The Financial Intelligence Centre (FIC) says some civil society organisations are being used for illegal money activities and is keeping a closer watch on their funding.
Speaking at a joint civil society briefing with the Ministry of Finance’s mid-term budget consultation in Windhoek last week, Eiseb urged Non Governmental Organisations (NGOs), churches, and other groups to register and declare their income sources to avoid being used for money laundering.
“We cannot shy away from the fact that some civil society organisations are being misused for illicit purposes. You must know your sources of funding. If they are legitimate, that protects your organisation’s integrity,” Eiseb said.
Namibia loses an estimated N$4.6 billion every year through money laundering, bribery, and tax evasion, according to Global Financial Integrity. The problem was serious enough to put Namibia on the Financial Action Task Force grey list in February 2024.
The government has since launched training and new strategies to fix weak spots in the system. Eiseb said civil society must stay transparent about funding while holding others accountable.
Eiseb said while most non-profit organisations are established with good intentions, a few have been abused for money laundering or terrorism financing.
The FIC director said they have adopted a risk based approach to ensure proportionality in regulation and compliance enforcement.
He called for stronger collaboration with civil society, churches, and community organisations in combating money laundering, terrorism financing, and illicit financial flows in Namibia.
“Civil society, churches, NGOs, and community organisations must be recognised not only as stakeholders, but as strategic partners in the fight against money laundering these institutions must serve as guardians of transparency,” he said.
Eiseb said the FIC serves as a national heart for detecting and disrupting money laundering, terrorism financing, proliferation financing, and illicit financial flows.
However, Eiseb said the reality is that the FIC cannot do it alone. “We do need your partnership to fight this evil squad. Some of the local embassies in Namibia said they did not know that the FIC is a government institution. We are not a private entity. My salary is paid by taxpayers, so I am accountable to you, and so must the FIC be as an institution,” he said.
FIC Acting Manager of the Compliance Monitoring Department, Selma Nakambale, said they are independent and are an autonomous national Financial Intelligence Unit (FIU) under the Ministry of Finance.
“Our principal objective is to combat money laundering, unlawful activities, and the financing of terrorism or proliferation activities in collaboration with law enforcement agencies,” Nakambale said .
Nakambale said Namibia’s anti-money laundering and counter-terrorism financing framework is guided by the Financial Action Task Force (FATF) standards, established by the G7 in 1989. FATF provides the global technical framework that countries use to develop their domestic legislation. Namibia’s legal compliance is ensured through several laws.
The FIC said civil society organisations are critical in promoting transparency, but vulnerable to exploitation. They said some civil society organisations have common risks including diversion of funds, abuse of legitimate programs, recruitment for extremist causes and weak financial controls.
Nakambale shared case studies from countries such as South Africa, Rwanda, and Mauritius, which have adopted various models for supervising and supporting Non Profitable Organisations (NPOs).
The FIC also warned that terrorism financing threats are increasing in southern Africa. South Africa’s 2024 National Risk Assessment recently elevated its terrorism financing risk rating from “moderate” to “high,” a situation that increases Namibia’s own risk due to close economic ties between the two countries.
Minister of Finance Ericah Shafudah said national priorities under National Development Plan 6 (NDP6) must be reflected in every aspect of governance, including financial oversight and compliance.
“When we were preparing the budget, even if by then NDP6 was not launched, the budget was informed by its aspirations. All offices, ministries and agencies have to align their focus to the critical pillars of NDP6,” she said
She highlighted key pillars including economic transformation, human development, and community resilience, areas where financial integrity plays a crucial role.
“We have to assess how our economy is growing and which sectors contribute to that growth and financial transparency is central to enabling this,” she said.
The Minister expressed concern over low development budget execution with an implementation rate below 50% as of September 2025, citing procurement delays and appeals as key bottlenecks.
“Yes, when the economy grows, revenue is expected to grow.But risks like geopolitical tensions and falling diamond demand have impacted collections. That’s why we must be even more vigilant with public resources,” she said.
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