Namibia: EU to Clear Namibia From Dirty Money Risk List

Namibia is expected to be removed from the European Union's (EU) list of high-risk jurisdictions for money laundering and terrorist financing by the end of this year.

EU ambassador to Namibia Ana-Beatriz Martins says an internal legislative process is already underway to remove Namibia from the EU's own anti-money laundering and counterterrorist financing list.

The clarification follows reports suggesting Namibia remained on the EU's financial crime monitoring list despite its Financial Action Task Force (FATF) delisting.

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Martins says Namibia's continued presence on the list relates to the bloc's 2025 annual update, which was based on the FATF's decision in 2024 to put Namibia under increased monitoring.

The EU says the delisting process follows the task force's decision to remove Namibia after the country completed reforms aimed at strengthening its anti-money laundering and counterterrorist financing framework.

Martins says the EU will support the country through the remaining legislative steps.

"As a next step, we are committed to support Namibia in the EU's own legislative and delisting process," she says.

NO SANCTIONS

Martins says being listed as a high-risk jurisdiction does not impose sanctions or restrictions on trade, investment or development cooperation.

However, financial institutions within the EU are required to conduct enhanced customer due diligence on transactions involving listed countries.

This means banks and other financial institutions may apply additional checks when processing transactions linked to Namibia.

The EU says the measures are aimed at protecting the integrity of the European financial system and ensuring compliance with international financial crime standards.

CCs AT RISK

While Namibia is moving closer to EU delisting, the Financial Intelligence Centre (FIC) has warned that risks remain within the country's financial system.

The FIC's latest annual report identifies close corporations (CCs) as the legal entities most vulnerable to abuse for money laundering and terrorist financing.

"The findings reinforce the 2023 National Risk Assessment observations, which identifies CCs as the legal entities most susceptible to abuse for money laundering and terrorist financing," the report states.

The FIC has found that most suspicious close corporations are locally owned, suggesting financial crime risks are mainly domestic rather than driven by foreign criminal networks.

"About 85% of CCs reported to the FIC are locally owned, while 76% of directors or beneficiaries are Namibian nationals.

"While some foreign-linked entities were identified, the overall pattern points to a predominantly domestic risk," the report says.

The findings point to the need for stronger monitoring of company structures that could be used to conceal illegal funds.

MORE SUSPICIOUS TRANSACTION REPORTS

The FIC recorded a further increase in suspicious transaction reports during 2025, with 15 226 reports submitted during the year.

Banks accounted for the majority of the reports, submitting 12 028 cases, representing 79% of all suspicious transaction reports received.

Authorised dealers with limited authority, including foreign exchange dealers, submitted 1 798 reports, while legal practitioners accounted for 339 reports.

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The FIC says the dominance of banks reflects their exposure to large transaction volumes and stronger monitoring systems.

"This pattern underscores the banking sector's central position in the reporting framework, supported by its larger transaction volumes, broader visibility over financial activity, and comparatively mature detection and reporting systems," the centre says.

The FIC has found that fraud and Ponzi schemes remained the most common crimes linked to money laundering, accounting for 30% of analysed cases.

Tax offences accounted for 13%, followed by theft at 10%, drug-related offences at 9%, and corruption at 6%.

Other crimes linked to money laundering investigations included terrorism, murder, poaching, counterfeit piracy, robbery and bribery.