Botswana

New Documents

ESAAMLG Notes Botswana’s Progress to Improve AML/CTF Technical Compliance

The Eastern and Southern Africa Anti-Money Laundering Group released its fourth follow-up report on Botswana’s progress to improve technical compliance with the Financial Action Task Force’s anti-money laundering and counterterrorist financing Recommendations.

January 27, 2021

Bank of Botswana Highlights Response to COVID-19, Promotes Digital Money Transactions

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.

April 9, 2020

ESMAALG Publishes First Enhanced Botswana AML/CTF Mutual Evaluation Report

May 28, 2019

ESAAMLG Publishes Mutual Evaluation Report on Botswana’s AML/CTF Regime

May 27, 2017

OECD Announces Partnership Between Kenya, Botswana Concerning Tax Inspectors Without Borders

December 1, 2016

News

Midweek Roundup: EU Probes Visa’s Fintech Controls, Mishcon de Reya Law Firm Under UK Investigation, and More

U.K. law firm fined for customer due-diligence breaches, Germany targets suspicious property transactions, and more, in the midweek roundup.

September 9, 2020

Legal Brief: Global Financial Community Acts Against COVID-19

In a more in-depth 13th installment of our series, the moneylaundering.com legal team reviews how governments and organizations across the globe are addressing the risks of financial crime prompted by the new coronavirus pandemic.

April 15, 2020

Weekly Roundup: UK Bank Investigated for Terrorist Financing, Huawei Discussed Iran Links with Citigroup and BNP Paribas, and More

August 23, 2019

Enforcement Actions

0 Items Found

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 : 6 High : 0
Largely Compliant : 16 Substantial : 0
Partially Compliant : 13 Moderate : 2
Non-Compliant : 5 Low : 9

A "graylisted" country as of Oct. 19, 2018. Botswana's technical compliance was re-rated in a Jan. 22, 2021 follow-up report

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