BoN, UNCTAD spotlight illicit financial flows
The Bank of Namibia (BoN), in collaboration with the United Nations Conference on Trade and Development (UNCTAD), recently hosted a three-day workshop aimed at addressing illicit financial flows (IFFs).This workshop brought together members of the National Technical Working Group (TWG) on IFFs, comprising government offices, ministries, agencies, and experts from various fields, to align Namibia’s strategy in combating IFFs.
The TWG, consisting of 14 institutions including BoN, Namibia Revenue Agency, Anti-Corruption Commission, and others, is mandated to collect data and tackle tax and commercial malpractices, financial crimes, and corruption. Since 2018, under BoN's guidance, the TWG has actively worked to understand IFFs, uncovering over N$1 billion in fraudulent activities related to clearing and customs.
This workshop is part of a new initiative led by UNCTAD and BoN to estimate the volume of illicit financial flows into and out of Namibia, aiming to inform policy measures. During the workshop, Penelao Kapenda, Chairperson of the TWG on IFFs, emphasised the importance of building capacity and identifying the drivers of IFFs for effective policy changes.
Bojan Nastav, Statistician at UNCTAD, highlighted the need for cooperation and strong political will to address IFFs, commending Namibia's commitment to involving government officials in this effort. Moving forward, the TWG will focus on measuring tax and commercial IFFs, identifying policy gaps, and developing recommendations to combat IFFs effectively.
Illicit financial flows involve illegal cross-border movements of money and can significantly impact a country's stability and the global financial system. Namibia's significant trade volume underscores its integration into the global economy, but questions about fair market practices, tax compliance, and financial oversight regulations must be addressed to combat IFFs associated with international trade.