The Minister of Finance Erica Shafudah has welcomed Namibia's delisting from the grey list of the Financial Action Task Force (FATF).

She said the process was not only about exiting the grey list, but also about strengthening Namibia's financial system.

Namibia has been removed from the FATF grey list following a decision announced at the organisation's final plenary meeting held in Mexico.

The development comes over two years after shortcomings were identified in the country's ability to combat money laundering and other related financial crimes.

Shafudah stressed that illicit financial flows deprive countries of resources needed for development, infrastructure, job creation and public services.

She added that the government has aligned the fight against financial crime with national development priorities under the Sixth National Development Plan.

"Namibia made history by passing 14 laws in record time because we really wanted to address those 13 deficiencies. Through the National Focal Committee, competent authorities were mobilised and governance structures were put in place to address those strategic deficiencies."

According to the Minister, authorities identified 13 strategic deficiencies that needed to be addressed before Namibia could be removed from the list.

This led up to the establishment of a national task force and institutions' mobilisation through the National Focal Committee, led by the Financial Intelligence Centre.

The Governor of the Bank of Namibia, Ebson Uanguta, highlighted that the experience demonstrated that strong laws alone are not enough if they are not effectively implemented and sustained.

He noted that grey-listing can result in increased scrutiny of financial transactions, longer processing times, higher compliance costs, and greater caution from international financial partners.

“Exiting the grey list reinforces Namibia's standing as a credible, transparent, and responsible participant in the global financial system and confirms that the country has taken the necessary corrective actions.”

Uanguta, however, cautioned that the removal from the grey list does not mean financial crime risks have disappeared.

"Exiting the grey list does not mean that financial crime risks have disappeared. The responsibility now is to sustain and deepen the progress that we are celebrating today."

He explained that the achievement demonstrates what can be accomplished when institutions work together toward a common national objective.

Uanguta commended the Financial Intelligence Center, competent authorities, reporting institutions, and technical partners for their contribution to the achievement.

FATF is a global watchdog responsible for setting standards aimed at combating money laundering, terrorism financing and other financial crimes.