Botswana

New Documents

The Bank of Botswana issued a press release concerning its regulatory response to the impact of the COVID-19 pandemic on the country’s financial section, including mitigation measures and plans to more widely promote the use of digital payment platforms and channels.

The Eastern and Southern Africa Anti-Money Laundering Group published its first enhanced follow up report and technical compliance re-rating for Botswana in relation to Botswana’s anti-money laundering and counter-terrorist financing measures.

News

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. State Department identifies Botswana as a monitored jurisdiction. Botswana is not a regional financial center. Its role as the world’s largest diamond producer provides opportunities for money laundering and illicit finance, though the stringent institutional framework for the mining and processing of diamonds affords little opportunity for organized diamond smuggling. Although money laundering in Botswana is not usually related to narcotics, there has been a recent increase in drug trafficking and in the sophistication and organization of cross-border criminal activity. The jurisdiction is a cash-based society and there is insufficient infrastructure to combat money laundering and terrorism financing. The rising trade in second-hand car dealerships is an area of concern, especially since there has been an increase in the amount and frequency of major fraud committed against large organizations, such as banks or government departments. Law enforcement officials reported an upsurge of cigarette smuggling in 2015. Officials believe there is a low risk of terrorist activity in the country, but they remain concerned about possible soft terrorism.
  • KYC Covered Entities: Banks, building societies, collective investment undertakings, the Botswana Savings Bank, post offices, registered stockbrokers, long-term insurance businesses, foreign exchange dealers, and the IFSC certification committee
  • STR Covered Entities:  Banks, building societies, collective investment undertakings, the Botswana Savings Bank, post offices, registered stockbrokers, long-term insurance businesses, foreign exchange dealers, and the IFSC certification committee
  • Enhanced Due Diligence Procedures for PEPs: Foreign: No; Domestic: No
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: N/A; Convictions: N/A
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 3 High :
Largely Compliant : 6 Substantial :
Partially Compliant : 13 Moderate :
Non-Compliant : 26 Low :
Not-Applicable : 1

A "graylisted" country as of Oct. 19, 2018.

BASEL i

Rank : 76/141
Score : 5.06/10

TRANSPARENCY INTERNATIONAL i

Rank : 34/180
Score : 61/100

Tax Justice Network i

Rank : 113/133
Score : 62/100