FIA Compliance
The Financial Intelligence Act
(Act 13 of 2012)
In terms of the Financial Intelligence Act ("FIA") all businesses and institutions mentioned in Schedule 1 and 3 of that Act have, amongst other things, the following legal obligations:
• To identify their clients in line with the requirements of the Act and its Regulations
• To keep certain record regarding information on their clients, in line with the requirements of the Act and its Regulations
• To report Suspicious Transactions or Activities in line with the requirements of the Act and its Regulations.
Failure by these businesses and institutions to comply with the above-mentioned obligations is a criminal offense and the persons responsible for such businesses and institutions, if found guilty, may be fined a maximum of N$ 100 million or 30 years imprisonment, or both the fine and the imprisonment.
Clients who refuse to give the required information may be regarded as acting suspiciously and these businesses can either refuse to do any further business with the client or to report the client’s suspicious behavior to the Financial Intelligence Centre to take further.
Schedule 1 - Accountable Institutions
The Act defines an “accountable institution” as a person or institution referred to in Schedule 1, including branches, associates or subsidiaries outside of that person or institution and a person employed or contracted by such person or institution.
Schedule 1 includes the following:
• A legal practitioner as defined in the Legal Practitioners Act, 1995 (Act No. 15 of 1995).
• An estate agent as defined in the Estate Agents Act, 1976 (Act No. 112 of 1976).
• A person or institution that carries on “banking business” as defined in the Banking Institutions Act, 1998 (Act No. 2 of 1998).
• A member of a stock exchange licensed under the Stock Exchanges Control Act, 1985 (Act No. 1 of 1985).
• A person who carries on the business of trading in minerals specified in Schedule 1 of the Minerals (Prospecting and Mining) Act, 1992 (Act No. 33 of 1992)
• A person who carries on the business of trading in petroleum as defined in section 1 of the Petroleum (Exploration and Production) Act, 1991 (Act No. 2 of 1991).
• An agent appointed in terms of section 108(1) of the Customs and Excise Act, 1998 (Act No. 20 of 1998);
• Any person or entity regulated by the Namibia Financial Institutions Supervisory Authority (NAMFISA).
• An Accountant or Auditor.
• Trust and Company Service Providers.
• A person that carries on the business of a casino.
• Any person or entity that buys and/or sells real estate for cash.
• A person who carries on the business of rendering investment advice or investment brokering services.
• A person, who issues, sells or redeems traveller’s cheques, money orders, or similar payment instruments.
• Any person or entity that carries on the business of electronic transfer of money or value.
• A person who conducts or carries on the business of an auctioneer.
• A person or entity that carries on the business of lending money.
• A non-profit organisation ("NPO").
NOTE - This list is an example only and does not purport to be complete. Please contact us or review the applicable legislation if you have further queries.
Schedule 3 - Reporting Institutions
The Act defines a “reporting institutions” as a person or institution set out in Schedule 3.
Schedule 3 includes the following:
• A person or institution that carries on the business of a motor vehicle dealership.
• A person that carries on the business of second hand goods.
• A person that carries on the business of a gambling house, a totalisator or bookmaker.
• A person or entity that carries on the business of trading in jewellery, antiques or art.
• A Short term insurer.
NOTE - This list is an example only and does not purport to be complete. Please contact us or review the applicable legislation if you have further queries.