Namibia greylisted

In February 2024, Namibia was grey-listed by the Financial Action Task Force (FATF) due to concerns over its Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Combating Proliferation Financing (CPF) systems' effectiveness. Despite legislative improvements, effectiveness in key areas remains a concern, prompting a need for urgent action to address identified shortcomings. This situation underscores the importance of closer cooperation between professional bodies, such as the Chartered Institute for Business Accountants and the Namibian government. By uniting efforts, they can enhance Namibia's financial system integrity, ensuring compliance with international standards and facilitating a swift exit from the FATF's grey list. This collaboration is crucial for maintaining confidence in Namibia's financial stability and ensuring the country's economic growth remains unaffected by such listings.

A recent study explores the economic impacts of FATF greylisting on countries, focusing on market responses and regulatory implications. It highlights the significant negative economic consequences of greylisting, especially on developing economies. It suggests that while technical compliance with FATF standards is recognized, it may not justify the economic costs incurred. The analysis prompts a reevaluation of the greylisting process and its implications on developing economies, considering the cost-benefit of greylisting. For a detailed analysis, read the full article on MDPI's website: Economic Consequences of Greylisting by the Financial Action Task Force.