Gaborone, Botswana, 25 – 28 March 2024 - In response to the ongoing commitment to combat financial crime, governmental authorities embarked on a landmark initiative facilitated by the United Nations Office on Drugs and Crime (UNODC), Regional Office for Southern Africa to fortify the existing Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework. This initiative was born out of Botswana's history of grappling with AML/CFT challenges, notably highlighted during its second Financial Action Task Force (FATF) mutual evaluation conducted in 2017.
The resulting Mutual Evaluation Report (MER), drafted by assessors from the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), identified significant deficiencies within Botswana's AML/CFT regime. Consequently, Botswana was placed on the FATF list of countries with significant deficiencies (grey list), triggering intensified scrutiny under the ESAAMLG enhanced follow-up process
[1]. Botswana exited the grey list in 2021 after addressing the strategic deficiencies identified through the mutual evaluation process. Botswana is likely to be one of the first countries to undergo an assessment in 2026 under the next round of mutual evaluations.
Faced with the looming fifth round of mutual evaluations, the Financial Intelligence Authority is working with UNODC to address existing deficiencies and bolster Botswana’s AML/CFT framework. To kick off this support, a Mock Mutual Evaluation exercise held in Gaborone from 25th to 28th March 2024, through the generous financial support provided by the United States State Department. This exercise aimed at providing relevant governmental institutions and departments with a comprehensive understanding of international AML/CFT standards and practices, while equipping stakeholders with the necessary tools and strategies to enhance the nation's AML/CFT framework.
The workshop drew active participation from diverse sectors, including criminal justice entities, financial institutions, the BDF, and regulatory bodies involved in AML/CFT efforts. This collective engagement symbolizes a unified commitment to strengthening Botswana's resilience against financial crime and safeguarding its financial integrity.
Throughout the four-day workshop, participants engaged in a series of activities designed to deepen their understanding of AML/CFT principles and practices. These activities included workshops on FATF and AML/CFT Mutual Evaluation Processes, hands-on exercises to navigate FATF's Technical Compliance and Effectiveness questionnaires, and comprehensive reviews of Botswana's AML/CFT landscape. Expert-led discussions and onsite engagements provided valuable insights and actionable recommendations to drive meaningful change.
As the workshop concluded, participants departed with renewed determination to advance Botswana's AML/CFT framework, guided by integrity, transparency, and resilience.
Looking ahead, the Mock Mutual Evaluation exercise scheduled from March to August 2024 represents a pivotal opportunity to further strengthen the Botswana's AML/CFT framework. Through a comprehensive range of activities, including workshops, compliance questionnaire reviews, onsite meetings, and the preparation of improvement recommendations, Botswana is poised to enhance its resilience against financial crime and reinforce its commitment to international AML/CFT standards.