Botswana Urged to Strengthen Anti-Money Laundering Laws

 

There is a need for an effective Anti-Money Laundering and Counter-Terrorism Financing regime, as the absence of such in a country creates a vacuum that allows criminals and those financing terrorism to benefit from their illegal gains.

Chief Legal and Compliance Officer of the Institute for Combating Illicit Financial Flows (ICIFF), Nozi Jeremiah, adds that the absence of controls also allows criminals to freely pursue criminal activities such as corruption, drug and human trafficking, kidnapping, and other related crimes.

“Where money laundering and terrorist financing are widespread, likely, predicate crimes such as corruption, drug trafficking, and bribery would also thrive,” Jeremiah said during a workshop to educate journalists on money laundering in Botswana.

“Combating these crimes and their consequences is of utmost importance,” she says, adding that a strong and effective AML/CFT system is generally associated with lower crime and corruption, stability of the financial system, and increased market confidence.

ICIFF Chief Financial Analyst, Molly Chakwenya, said the trends for money laundering include externalisation of funds, prevalent use of cash, fraud, Tax evasion, cyber-enabled crime, fake investment accounts, Illegal deposit taking, drug trafficking, and the use of money mules.

“The externalisation of funds is common with businesses owned by foreigners, with frequent large cash deposits made in the business bank accounts. The cash is usually in whole denominations, for instance, P100 and P200 notes, not resembling proceeds from the nature of the business type, which is retailing,” Chakwenya said.

According to Chakwenya, after funds have accumulated, they are subsequently transferred intentionally with no corresponding import documents to back up the alleged purpose of payment for imported goods.

For his part, Media Institute of Southern Africa (MISA) Botswana Chairperson, Thomas Nkhoma, said as the world grapples with the challenge of illicit financial flows, Botswana continues to strengthen its efforts to build integrity and transparency within the financial system.

He noted that the media, as a vital pillar of democracy and accountability, has a critical role to play in helping the public understand these complex issues and in holding those in positions of power accountable.

He pointed out that journalists can work together across institutions, share data, and jointly pursue stories that expose the mechanisms and impact of illicit financial flows. He said by doing so, the media can amplify its voice and strengthen its watchdog role even in the face of limited resources.

Nkhoma shared that combating illicit financial flows is not only the work of governments or regulators, but a collective effort that demands vigilance, courage and integrity from all sectors including the media.

He said when journalists are empowered with the right knowledge and tools, they can follow the money, connect the dots and illuminate the hidden pathways through which public resources are siphoned away from communities that need them most. Journalist Kabo Ramasia said the two-day workshop created a space for dialogue, for building the technical understanding needed to investigate these issues and for cultivating the confidence to report on them responsibly and effectively.

Ramasia said the workshop is also a platform for reflection on how journalists can strengthen the link between transparency, accountability, and sustainable development.