MoU Signing - FIA & NBFIRA

PRESS RELEASE
 

The Financial Intelligence Agency (FIA) and the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) signed a Memorandum of Understanding on the 5th October, 2015 at 10 a.m. at the Non-Bank Financial Institutions Regulatory Authority offices. The principal purpose for signing of the MoU is premised on the intent to establish a framework for mutual assistance, co-operation and exchange of information aimed at achieving the recommended domestic cooperation that places the Country in a better position in terms of compliance with international Anti Money Laundering and Counter Terrorism Financing standards.

As outlined in Section 8 of the NBFIRA ACT, the Authority’s objective amongst others is to ensure reduction and deterrence of financial crime hence signing of the MOU. The MoU will therefore continue to further strengthen and guide a working relationship entailing collaborative activities the two entities have been engaging in which includes; delivering the Anti Money Laundering (AML) and Counter Terrorism Financing (CTF) presentations to entities licensed by NBFIRA. The two organizations are also taking part in updating the Country’s AML/CTF Assessment Report and are active participants of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) where country reports are presented.

“Section 40 of the NBFIRA Act allows NBFIRA to consult with other Agencies of Government that have functions related to the regulation or supervision of financial services and the financial system. The said section further allows the Authority to enter into arrangements with other such Agencies, inter alia to make provision for exchange of information, consultation, enforcement and conduct of joint examinations and investigations,” said NBFIRA CEO Mr. Oaitse Ramasedi.

Meanwhile the Financial Intelligence Agency Director Dr Abram Sethibe highlighted that his organizations mandate is to coordinate Anti-Money Laundering and the Counter Terrorism Financing strategies in Botswana. “In doing this, FIA collaborates with other stakeholders, including the Non-Bank Financial Institutions Regulatory Authority, NBFIRA as the regulator and supervisor of Non-Bank Financial Institutions (NBFIs). NBFIRA is particularly a very critical stakeholder in the fight against ML/FT for it oversees a very large, diverse and specialised industry. NBFIRA also serves in the National Coordinating Committee on Financial Intelligence (NCCFI), a statutory committee which guides the AML/CTF policy direction for the country,” said Dr Abram Sethibe.

Dr. Sethibe further said that the Financial Intelligence Agency Act, 2009 designates NBFIRA as the supervisory body responsible for the AML/CTF compliance of the Non-Bank Financial Institutions (NBFI) and are obliged by the FIA Act to report suspicious transactions and cash transactions above P10 000 to the FIA. 

The MoU highlights the need for FIA and NBFIRA to engage in joint AML/CFT inspections of entities supervised by NBFIRA and share information regarding non-compliance in the industry as well as the observed trends in the NBFI sector. “All these efforts are meant to safeguard the integrity of the country’s financial system,” said Dr. Sethibe.