Financial Intellegence Centre FAQ

FREQUENTLY ASKED QUESTIONS (“FAQs”)

1. What is the Financial Intelligence Centre (FIC)?

The FIC is the Financial Intelligence Unit of the Government of the Republic of

Namibia. It was created under section 7 of the Financial Intelligence Act, 2012 (Act No.

13 of 2012) and became operational on 09 May 2009.

2. How can the FIC be contacted?

The FIC can be contacted via https://www.fic.na/index.php?page=contact-us and

mailto:helpdesk@fic.na

3. What is the Financial Intelligence Act?

The Financial Intelligence Act, 2012 (Act No 13 of 2012) (FIA) is a piece of Namibian

legislation that provides for the powers of the FIC and sets out the obligations to

Accountable and Reporting institutions so as to prevent their businesses from being

abused for money laundering or the financing of terrorism or proliferation. The FIA is

administered by the FIC.

4. What is the function and role of the FIC?

The FIC is a creature of statute mandated to act within the ambit of the Namibian

Constitution and the Financial Intelligence Act, 2012 (Act No. 12 of 2013) (FIA). It is

governed by the rule of law and remains neutral and objective in application of the law.

The FIC’s role is to assist in the identification of the proceeds of crime and in combating

money laundering, the financing of terrorism and the financing of weapons of mass

destruction (also known as proliferation financing) It does this by:

• receiving and analysing various types of reports from accountable and

reporting institutions, which include banking institutions, on suspicious and

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unusual transactions as well as on cash transactions above a specified

threshold, amongst others. The source, contents and information contained in

the reports they submit are confidential and only shared within the boundaries

of the FIA.

• disseminating financial intelligence reports to competent authorities for

purposes of investigation and prosecution. In discharging its mandate, the FIC

is guided by the principle of ‘follow the money’, an internationally accepted

principle for financial intelligence units globally. The financial intelligence

reports tell a story on the flow of funds, ultimate beneficiaries and benefactors.

In this, it adds considerable value to the fight against crime in the country.

• responding to requests for information from competent authorities and

disseminates financial intelligence reports to them where necessary, which

enables Law Enforcement to record massive successes in cases of national

importance which amongst others, involve large scale corruption.

5. What is a Competent Authority?

Competent Authority is defined in section 1 of the FIA to be any supervisory body, the

Namibian Police Force, the Anti-Corruption Commission, the Namibian Central

Intelligence Service, the Prosecutor General, or any other authority that may, in terms

of any law, investigate unlawful activities.

6. What is money laundering?

Money laundering is the process whereby 'dirty money', produced through criminal

activity, is transformed into 'clean money' whose criminal origin is difficult to trace.

Criminals do this by disguising the sources, changing the form, or moving the funds to

a place where they are less likely to attract attention.

The money earned from criminal activity (proceeds of crime) can originate from all

kinds of criminal offences. These include, but are not limited to illegal drug trafficking,

bribery, fraud, forgery, murder, robbery, tax evasion, and illegal financial schemes.

7. How is money laundered?

Criminals who have generated an income from their criminal activities usually follow

three common steps to launder their money:

• The first step is called “placement” and occurs when the criminal introduces the

funds derived illegally into legitimate financial systems. An example is splitting

a large amount of money into smaller sums and thereafter depositing it into a

bank account or converting it into negotiable instruments.

• The second step is called “layering”, and involves a series of transactions,

conversions, or movements of funds in order to hide the trail and separate them

from their illegal source. An example is the purchase and sale of investment

instruments, purchasing and selling or property, purchasing and returning

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motor vehicles. The launderer might also simply transfer funds through a series

of bank accounts across various institutions around the world.

• The third step is called “integration” and occurs when the previous stages of

placement and layering have been successful. During this stage, the launderer

may return the funds and invest them now that they appear to be from a

legitimate source.

If money laundering is suspected through the processing of a financial transaction, FIC

needs to know.

8. What is terrorist financing?

Terrorist financing involves collecting or providing funds in order to enable a terrorist

organisation or individuals to commit an act that is regarded as a terrorist act. Funds

raised may come from legitimate sources, such as personal donations and profits from

businesses and charitable or non-profit organisations, as well as from criminal sources,

such as the drug trade, the smuggling of weapons and other goods, fraud, kidnapping

and extortion.

9. What is Proliferation Financing?

Proliferation financing is defined by the FATF as the provision of funds or financial

services used for the manufacture, acquisition, possession, development, export,

trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical

or biological weapons and their means of delivery and related materials (including both

technologies and dual-use goods used for non-legitimate purposes), in contravention

of national laws or, where applicable, international obligations.

Preventing proliferation financing is an important part of combatting proliferation. It is

essential to disrupt the financial flows available to proliferators and to obstruct and

complicate the procurement of the illicit goods, services and technology needed for the

development of weapons of mass destruction and their means of delivery.

10. Where can the latest laws relating to money laundering, terrorist financing and

proliferation financing be found?

The latest relevant Acts, Regulations, Directives, Guidance Notes, Notices and

Circulars can be accessed on the FICs website through the following links:

• Financial Intelligence Act and Regulations

https://www.fic.na/index.php?page=aml-cft-legal-framework

• Guidance Notes, Notices, Circulars and Directives

https://www.fic.na/index.php?page=publications

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11. What is an Accountable Institution?

The term is defined in section 1 of the FIA as a person or institution referred to in

Schedule 1, including branches, associates or subsidiaries outside of that person or

institution and a person employed or contracted by such person or institution. Thus, it

is a person or institution that carries out any business or activity listed under Schedule

1 of the Act.

12. What is a Reporting Institution?

The term is defined in section 1 of the FIA as a person referred to in Schedule 3 of the

FIA. It is thus a person or institution that carries out any business or activity listed under

Schedule 3 of the Act.

13. Does the FIC have the power to investigate potential crimes and make arrests?

The FIC’s power is limited to the receipt, analysis and dissemination of intelligence

products, which alerts law enforcement authorities on the possible criminal conduct by

natural or legal persons, or both. The powers of the FIC do not extend to investigation

and prosecution and as such, it cannot investigate and prosecute matters involving

financial crime. It is for this reason that the FIC works closely with law enforcement

authorities in the broader criminal justice system and related areas. The financial

intelligence provided to these authorities consists of a combination of factual

information and the FIC’s analysis of those facts.

14. Can I give the FIC information on someone that I think is involved in something

illegal?

If you believe that the information you have is serious and requires an immediate

response, then you may wish to provide this information to your local police station.

If it is still a suspicion, you may file a suspicious activity report with the FIC. The FIC

may receive information from the public about suspicions of money laundering, terrorist

financing, proliferation financing or other suspected criminal activities.

15. Does the FIC have the power to freeze my bank account?

The FIC has the authority to issue intervention orders in terms of section 42 of the FIA,

if the Centre has reasonable grounds to suspect that a transaction or a proposed

transaction may involve the proceeds of unlawful activities or may constitute money

laundering or the financing of terrorism, it may direct the institution in writing not to

proceed with a transaction or any other transaction in respect of the funds affected by

that transaction. The intervention on the funds affected may not be more than 12 days.

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16. Do I have to declare any amount of cash I carry across Namibian borders?

Travellers must declare cash or bearer negotiable instruments in Namibia dollar or

foreign currency if the combined value of NAD 100,000.00 or more. You make a

declaration by completing a form when entering or leaving Namibia. If you fail to

declare or make a false declaration, it constitutes a criminal offence and you may be

fined for up to NAD 100 million or be imprisoned for up to 30 years, or both fined and

imprisoned. The funds found will be seized and confiscated to the State.

17. Who should register with the FIC?

In terms of section 39(2) of the Financial Intelligence Act, all accountable and reporting

institutions as listed on schedule 1 and 3 of the Act, are to register with the Financial

Intelligence Centre.

18. How do I register with the FIC?

To register with the FIC:

• Download the registration form from the FICs website FIA Registration

Form.docx (live.com)

• Submit the downloaded form to register@fic.na

• The Following documents should be attached for submission:

I. All institutions applying for registration are expected to submit a copy of

their AML/CFT/CPF Compliance Programme, which has been duly

approved by relevant management, as per sections 39(3) and (4) of the

FIA. An AML/CFT/CPF Compliance Programme is a document that

outlines how institutions comply with relevant provisions of the FIA.

II. A copy of the entity/company’s registration documents

III. A copy of Identity Document (ID)

• After all due diligence is completed, the FIC will send a Confirmation Letter to the

Compliance officer of such entity/company, as per the registration details provided.

• For the full guide click on this link: Directive 03 of 2020 - FIC Registration

Requirements.pdf

19. What is a Suspicious Transaction Report ?

If a person or an accountable or reporting institution or business suspects or believes

there are reasonable grounds to suspect that, as a result of a transaction which it is

asked to conclude or about which enquiries are made, it may receive the proceeds of

unlawful activities or in any other way be used for money laundering or financing of

terrorism or proliferation purposes should the transaction be concluded, it must, within

the prescribed period after the suspicion or belief arose, report to the Centre.

A person or an accountable or reporting institution or business which made or is to

make a report in terms of this section must not disclose that fact or any information

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regarding the contents of that report, to any other person, including the person in

respect of whom the report is or to be made.

If you fail to comply, you will be guilty of committing an offence and will be liable to a

fine not exceeding N$100 million or, where the commission of the offence is

attributable to a representative of the accountable or reporting institution, to such fine

or imprisonment for a period not exceeding 30 years, or to both such fine and such

imprisonment.

20. What is a Suspicious Activity Report?

A suspicious activity report is different from a suspicious transaction report described

above, in that a suspicious activity is not a transaction per se but activities that may

escalate to a future transaction. This involves the behavior of a client, or potential client

or someone acting on behalf of the client, which is suspicious in terms of money

laundering and the financing of terrorism or proliferation activities.

Suspicious activities are indicative of the potential abuse of the financial system by

criminals, money launderers and financiers of terrorism and proliferation activities.

Therefore, reporting of suspicious activities is a proactive effort which renders the anti-

money laundering and the prevention and combating of terrorist and proliferation

activities regime effective in detection and prevention of these mischiefs.

21. What does FIC do with the reports it receives?

The FIC analyses suspicious transaction or activity reports in combination with publicly

available information, voluntary information provided by law enforcement, and other

information to determine whether there are reasonable grounds to suspect that the

information warrants the investigation or prosecution of a money laundering or terrorist

or proliferation financing or any other offence. Once such reasonable grounds are

established, the FIC provides financial intelligence to competent authorities, including

law enforcement and national security agencies to combat money laundering, terrorist

financing, proliferation financing and threats to the security of Namibia.

As part of its mandate, FIC must ensure that the confidential information it receives is

protected from unauthorised disclosure. Any unauthorised use or disclosure of

information is prohibited in the Financial Intelligence Act, Act No 13 of 2012, and can

result in severe criminal penalties.

22. What happens if I tell a client or an entity of a STR or an ongoing FIC

investigation?

A person who tips off somebody or an entity who is under investigation by the Financial

Intelligence Centre commits an offence and is liable to a fine not exceeding N$100

million or to imprisonment for a term not exceeding 30 years, or to both such fine and

such imprisonment under Section 46(a)(b) of the FIA.

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23. Do I have to report a suspicious financial transaction that was not completed?

You must report an attempted transaction if you have reasonable grounds to suspect

that the attempted transaction is related to a money laundering or terrorist or

proliferation financing offence. An attempted transaction is one that a client intended

to conduct and took some form of action. It would include negotiations or discussions

to conduct a transaction and involve concrete measures taken by either you or the

client. If you don't suspect that the attempted transaction is related to money

laundering or terrorist or proliferation financing, there is no reporting requirement.

24. What are Politically Exposed Persons?

A Politically Exposed Persons (“PEP”) is the term used for an individual who is or has

in the past been entrusted with prominent public functions in a particular country. The

FIC has issued Guidance and a Directive on PEPs

Directive Link:

https://www.fic.na/uploads/Publications/Directives/2020%20Directives/Directive%200

2%20of%202020%20-%20Politically%20Exposed%20Persons.pdf

Guidance Note Link:

https://www.fic.na/uploads/Publications/Guidance%20Notes/2019%20Guidance%20

Notes/Guidance%20Note%20No%2001%20of%202019%20on%20the%20Treatmen

t%20of%20Politically%20Exposed%20Persons.pdf

25. Can the FIC issue a clearance certificate or certificate of good standing?

The FIC does not provide certification, endorsement, accreditation or any other type of

confirmation regarding an entity's obligations in terms of the Financial Intelligence Act,

Act No 13 of 2012. The FIC can only provide confirmation as to whether or not an

institution or entity is registered with the FIC for purposes of AML/CFT/CPF

supervision.

26. Are the Guidance Notes imposed by the FIC in terms of the FIA enforceable in

terms of the law?

The primary purpose of Guidance Notes is to provide guidance to institutions on how

they can perform their duties and comply with the obligations.

The Centre’s Guidelines cannot impose new obligations or detract from existing

obligations. The Guidance Notes are issued to provide guidance on the existing

obligations and requirements contained in the FIA and complementing regulations,

thus it cannot be enforceable in law, but prescribes an acceptable standard to indicate

the level of effort expected from the responsible institution in order to comply with the

provisions of the FIA.

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27. What is a Directive?

It is an official or authoritative instruction that is issued by the FIC under the Financial

Intelligence Act, Act No 13 of 2012 which is enforceable. Anyone who does not comply

with a Directive may be charged with a criminal offence.

28. What is the Financial Action Task Force (FATF)?

FATF is an intergovernmental body, covered overs 30 countries that promotes policies,

known as recommendations that is used to combat money laundering, terrorism of

financing and proliferation financing of weapons of mass destruction. The FATF has

issued 40 Recommendations to combat money laundering and financing of terrorism

and proliferation. Countries are required to work these recommendations into their

national legal and institutional frameworks in order to be compliant with international

AML/CFT/CPF1 standards that are also recognised by the United Nations. FATF-Style

Regional Bodies (FSRB2s) are known to help construct and support AML/CFT

compliance policies and updates in every major regions in the world. There are 9

FSRBs and ESAAMLG was established to serve as a FATF-Style regional body for

Eastern and Southern African countries.

29. What is ESAAMLG?

The Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) is a

FATF Style Regional Body subscribing to global standards to combat money

laundering and financing of terrorism and proliferation. Namibia is a member of

ESAAMLG.

30. How does the FIC fit into the work of the FATF and ESAAMLG?

UNTOC3 requires all countries to have a financial intelligence unit (FIU) and FIC is the

FIU of Namibia. The FIC is tasked with implementing the Financial Intelligence Act, Act

No 13 of 2012, which incorporates the FATF Recommendations. As a member country

to ESAAMLG Namibia has certain obligations e.g. serve on Review Groups, Projects

and Assessment Teams that assess AML/CFT/CPF frameworks of other ESAAMLG

member countries. The FIC must also keep up to date with international AML/CFT

/CPF developments in order to advise on policy to calibrate the national framework

and must attend and participate in FATF and ESAAMLG meetings where international

and regional policy is formulated. At national level FIC serves as the country

coordinator for implementation of the national AML/CFT/CPF framework.

1

Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation

2

FATF-Style Regional Bodies

3

United Nations Convention against Transnational Organized Crimes

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31. What is United Nations Convention Against Organized Transnational Crime

(UNOTC)?

UNOTC was adopted by General Assembly resolution 55/25 of 15 November 2000. It

is the main international instrument in the fight against transnational organized crime.

It opened for signature by Member States at a High-level Political Conference

convened for that purpose in Palermo, Italy, on 12-15 December 2000 and entered

into force on 29 September 2003. The Convention is further supplemented by three

Protocols, which target specific areas and manifestations of organized crime:

• the Protocol to Prevent, Suppress and Punish Trafficking in Persons,

Especially Women and Children;

• the Protocol against the Smuggling of Migrants by Land, Sea and Air;

• and the Protocol against the Illicit Manufacturing of and Trafficking in Firearms,

their Parts and Components and Ammunition.

Namibia acceded to this convention on 3 August 2004 and is required to implement the

obligations specified therein.

32. What is a Virtual Asset (VA)?

A VA is a cryptographic or digital representation of value that can be used for payment

or investment purposes. Regardless of its use, a VA does not meet the criteria for

consideration as a fiat currency in Namibia, but it can be readily exchanged for funds,

goods or for other VAs amongst parties who choose to do so. Most include a private

key of a cryptographic nature or system that enables persons to have access to a

digital representation of value.

Example : Cryptocurrencies are a type of virtual asset.

33. What is a Virtual Asset Service Provider (VASP)?

The first part of the definition of VASP refers to any service in which VAs can be given

in exchange for fiat currency or vice versa. If parties can pay for VAs using fiat currency

or can pay using VAs for fiat currency, the offeror, provider, or facilitator of this service

when acting as a business is a VASP. Furthermore, A VASP is any natural or legal

person who, as a business, conducts one or more of the following activities or

operations for, or on behalf of another natural or legal person:

i. Exchange between virtual assets and fiat currencies;

ii. Exchange between one or more forms of virtual assets;

iii. Transfer1 of virtual assets;

iv. Safekeeping and/or administration of virtual assets or instruments enabling

control over virtual assets; and

v. Participation in and provision of financial services related to an issuer’s offer

and/or sale of a virtual asset.

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34. What does a Virtual Asset Service Providers (VASPs) include?

In terms of this definition, a VASP includes persons availing certain services within the

VA value chain. These include but are not limited to exchange:

✓ houses;

✓ agents;

✓ brokers;

✓ mixers;

✓ traders;

✓ virtual asset managers;

✓ persons providing for trade,

✓ clearance and settlement services of VAs;

✓ persons facilitating the exchange of fiat currencies for any type of VA (and

vice-versa),

✓ crypto fund managers and distributors of crypto funds, businesses or persons

accepting VAs as forms of payment for their products and services etc.

These are activities that are inherently vulnerable to ML/TF/PF abuse and excludes

persons offering certain services which merely support the administration or

functioning of technologies/platforms on which VAs operate, such as Bitcoin miners,

provided that such are not involved in any of the activities mentioned above.

35. How does the FIC regulate VASPs?

The FIC issued a Directive and Guidance on VASPs and VAs because the global

emergence of Virtual Assets (VAs), often referred to as crypto or digital assets (or

currencies), has resulted in the creation of an avenue where electronic or digital value

is moved with minimal regulatory oversight and interventions. The FIC is the

AML/CFT/CPF regulator of VASPs.

Directive Link:

https://www.fic.na/uploads/Publications/Directives/2021%20Directives/Directive%200

2%20of%202021%20on%20VASP%20FIA%20Compliance.pdf

36. What is corruption?

Corruption can be defined as the abuse of position, standing or advantage to

undermine legitimate public (or general social) interests for the illicit benefit of a few or

participants in such acts. In other words, a public officer commits an offence through,

directly or indirectly, corruptly uses his or her office or position in a public body to obtain

6 any gratification, whether for the benefit of himself or herself or any other person.

Corruption often takes many forms and perpetrators continue to develop innovative

ways to advance their corrupt activities. The Anti-Corruption Agency (ACC) is the

national agency created for combating of corruption nationally.

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37. What are the different forms of corruption?

Generally, corruption can be said to take the following forms:

i) Bribery: constitutes a crime and is defined as soliciting of any item of value to

influence the actions of an official or other person in charge of a private or public

legal duty;

ii) Kickback: is a form of negotiated bribery in which a commission is paid to the bribe-

taker as an agreement for services/favours rendered. The remuneration (such as

money, goods or services handed over) is usually agreed tacitly or otherwise. The

purpose of the kickback is usually to encourage (coerce) the other party to

cooperate in the illegal scheme;

iii) Illegal gratuities: These are items of value given to reward a decision after it has

been made. The gift is usually made as a token of appreciation for something that

has been done; and

iv) Collusion: An agreement between two or more individuals to commit an act

designed to deceive or gain an unfair advantage.

38. What is the FICs role in fighting corruption?

The primary goal of the Financial Intelligence Centre is to coordinate Namibia’s Anti-

Money Laundering, Combatting the Financing of Terrorism and Proliferation

(AML/CFT/CPF) framework and, in doing so, works with relevant stakeholders such

as regulatory and supervisory bodies, private sector, Law Enforcement Authorities

(LEAs) and the Office of the Prosecutor General, amongst others.

The FIC, receives and analyses data, which is used to identify proceeds of predicate

offences to ML/TF and PF. Corruption is a predicate offence. The outcomes of the

FIC’s analytical work are availed to the competent authorities, including the ACC, in

the form of intelligence disclosures, which is used in investigations, prosecutions and

asset forfeiture activities relating to ML/TF and PF.

39. Are accountable institutions allowed to share the contents of their STRs with

it’s Financial Group?

In terms of the Financial Intelligence Act, 2012 (Act No. 13 of 2012) (FIA), accountable

institutions are not allowed to share STR information, not even with their Financial

Group.

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40. Do accountable and reporting institutions have to obtain certified copies

identification information from their clients?

Yes. Copies documents obtained by accountable and reporting institutions must be

certified. In accordance with the Financial Intelligence Act, “document” means –

(a) the original document or a copy of the original document certified to be a true copy

by a commissioner of oaths or public notary in accordance with the provisions of the

Justices of the Peace and Commissioners of Oaths Act, 1963 (Act No. 16 of 1963); or

(b) a copy of the original document verified by an authorised person to have viewed

the original document and having made a copy thereof”.

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