Key Documents

Botswana Releases Amended Proceeds of Serious Crime Act

January 1, 2007

Botswana Establishes Financial Intelligence Agency

May 22, 2009

Botswana Enacts Law for Supervision of Banking Industry

July 7, 1995

Botswana Imposes AML Obligations on Banks

April 17, 2003

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 | 2013 Methodology

Technical	Effectiveness
Compliant : 7	High : 0
Largely Compliant : 25	Substantial : 0
Partially Compliant : 5	Moderate : 2
Non-Compliant : 2	Low : 9
Not-Applicable : 1

A "graylisted" country as of Oct. 19, 2018. Botswana's technical compliance was re-rated in a Nov. 9, 2023 follow-up report

BASEL i

Rank : 41/110

Score : 4.87/10

TRANSPARENCY INTERNATIONAL i

Rank : 35/179

Score : 60/100

Tax Justice Network i

Rank : 113/133

Score : 62/100

Botswana

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