The European Commission has added Namibia to the EU's Updated List of High-Risk Jurisdictions for Financial Crime Monitoring.
The Commission's decision is said to be a direct consequence of the Financial Action Task Force's deliberations and decision at last year's Plenary Meeting, which resulted in Namibia's inclusion on the FATF "grey list" due to identified strategic deficiencies.
In a statement by the Press and Communication Officer of the EU Delegation to Namibia, the EU said it is legally bound to consider listing any Financial Action Task Force (FATF) listed country.
It's for this reason that Namibia has been identified as a high-risk jurisdiction for anti-money laundering and counter-terrorism financing frameworks.
Twaku Kayofa explained that the Commission's decision is subject to scrutiny by the European Parliament and European Council of Ministers in the coming month.
If approved, the list will come into force 20 days after publication in the EU Official Journal.
Banks and financial institutions in the 27 EU countries will then be required to apply due diligence measures when conducting financial transactions involving Namibia.
Kayofa stressed that this listing does not amount to sanctions or prevent Namibia from accessing EU trade, investment or cooperation funds.
It is also not a political judgement nor a punitive action but a procedural requirement to ensure proper financial vigilance.
In 2024, the EU and Namibian authorities collaborated in the implementation of the action plan to have the country removed from the greylist.
Kayofa explained that for Namibia to be delisted, the country will have to demonstrate sustained progress in implementing the action plan, which includes measures to strengthen the effectiveness of the AML/CFT regime.
Once Namibia is removed from the grey list, the European Commission will assess the reforms undertaken in line with specific rules for delisting the country.
Kayofa stated that Namibia remains a valued partner for the EU, irrespective of the listing.
Questions sent to the Namibia Financial Intelligence Centre by NBC News regarding the latest development were not responded to.