STAFF WRITER
THE decision by the European Union(EU) to put Namibia among the high-risk financial jurisdictions alongside Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Nepal and Venezuela will make it more difficult for the country to transact with the trading bloc.
The European Commission updated the EU list of high-risk jurisdictions for anti‑money laundering (AML) and counter‑terrorism financing frameworks (CFT) last week.
A statement released by the EU on Thursday said the decision is a direct consequence of the Financial Action Task Force (FATF)’s deliberations which resulted in Namibia’s inclusion on the FATF “grey list” due to identified strategic deficiencies.
“The EU is legally bound to consider listing any FATF-listed country. The European Commission’s decision is subject to scrutiny by the European Parliament and European Council of Ministers within the coming month. If approved, the list will enter into force 20 days after publication in the EU Official Journal,” the EU said.
The EU added that, “Once in effect, banks and financial institutions in the EU27 will be required to apply enhanced due diligence measures when conducting financial transactions involving Namibia. It is important to note that this listing does not amount to sanctions and does not prevent Namibia from accessing EU trade, investment or cooperation funding. The listing is not a political judgment nor a punitive action; it is a procedural requirement to ensure proper financial vigilance. Namibia remains a valued partner of the European Union.”
EU Ambassador to Namibia Ana Beatriz Martins, said they working closely with the Namibian authorities to deal with the issue
“The European Union values its strong partnership with Namibia. We are actively supporting Namibia’s efforts to strengthen its anti-money laundering framework through dedicated technical assistance, workshops and training activities between EU and Namibianexperts from government, regulators and financial sector.” She added, “We share the same goal: to work towards a more transparent, secure and trusted global financial system that protects us from abuse by criminals, terrorists, and corruption,” she said
Namibia will need to demonstrate sustained progress in implementing the FATF Action Plan, which includes measures to strengthen the effectiveness of its AML/CFT regime to be delisted.
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