Botswana 1 - ESAAMLG Botswana-April 2019.pdf · PDF file 2019-06-13 ·...

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Transcript of Botswana 1 - ESAAMLG Botswana-April 2019.pdf · PDF file 2019-06-13 ·...

  • Anti-money laundering and

    counter-terrorist financing

    measures

    Botswana

    F o

    ll o

    w -u

    p r

    e p

    o rt

    1 st

    Enhanced Follow-up Report &

    Technical Compliance Re-Rating

    April 2019

  • The Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) was officially established in 1999 in

    Arusha, Tanzania through a Memorandum of Understanding (MOU). As at the date of this Report, ESAAMLG

    membership comprises of 18 countries and also includes a number of regional and international observers such as

    AUSTRAC, COMESA, Commonwealth Secretariat, East African Community, Egmont Group of Financial Intelligence

    Units, FATF, GIZ, IMF, SADC, United Kingdom, United Nations, UNODC, United States of America, World Bank

    and World Customs Organization.

    ESAAMLG’s members and observers are committed to the effective implementation and enforcement of

    internationally accepted standards against money laundering and the financing of terrorism and proliferation, in

    particular the FATF Recommendations.

    For more information about the ESAAMLG, please visit the website: www.esaamlg.org

    This document and/or any map included herein are without prejudice to the status of or sovereignty over any

    territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

    This report was adopted by the ESAAMLG Task Force of Senior Officials at its meeting in Arusha, Tanzania in

    April 2019.

    © 2019 ESAAMLG. All rights reserved.

    No reproduction or translation of this publication may be made without prior written permission.

    Applications for such permission, for all or part of this publication, should be made to the ESAAMLG

    Secretariat, P. O. Box 9923, Dar es Salaam-United Republic of Tanzania Tel: +255 22 2667895/7679

    Fax No: +255 22 2668745

    Email: [email protected]

    Citing reference:

    ESAAMLG (2019), Anti-money laundering and counter-terrorist financing measures - Botswana, 1st

    Enhanced Follow-up Report & Technical Compliance Re-Rating, ESAAMLG, Dar es Salaam

    http://www.esaamlg.org

    http://www.esaamlg.org/ mailto:[email protected] http://www.esaamlg.org/

  • Page 3 of 42

    BOTSWANA: 1st FOLLOW-UP REPORT & REQUEST FOR TC RE-RATING .................................... 5

    I. INTRODUCTION ....................................................................................................................................... 5

    II. FINDINGS OF THE MUTUAL EVALUATION REPORT ............................................................ 5

    III. OVERVIEW OF PROGRESS TO IMPROVE TECHNICAL COMPLIANCE ............................ 6

    3.1. Analysis of Current Progress to Address Technical Compliance Deficiencies ......................... 6

    3.1.1 Recommendation 1 (Originally rated NC- re-rated LC) ............................................................. 6

    3.1.2 Recommendation 2 (Originally rated PC- rating retained as PC) ............................................. 7

    3.1.3 Recommendation 3 (Originally rated PC- re-rated to C) ............................................................ 8

    3.1.4 Recommendation 4 (Originally rated PC- re-rated LC) .............................................................. 8

    3.1.5 Recommendation 5 (Originally rated NC- re-rated C) ................................................................ 9

    3.1.6 Recommendation 6 (Originally rated NC-re-rated to PC) ........................................................ 11

    3.1.7 Recommendation 7 (Originally rated NC: re-rated PC) ............................................................ 14

    3.1.8 Recommendation 8 (Originally rated NC: not re-rated) ........................................................... 15

    3.1.9 Recommendation 9 (Originally rated NC: re-rated to PC) ....................................................... 15

    3.1.10 Recommendation 10 Originally rated NC: re-rated PC) ........................................................... 16

    3.1.11 Recommendation 11 (Originally rated NC: Re-rated to LC) .................................................... 18

    3.1.12 Recommendation 12 (Originally rated NC: re-rated LC) .......................................................... 18

    3.1.13 Recommendation 13 (Originally rated NC: re-rated PC) ............................................................... 19

    3.1.14 Recommendation 15 (Originally rated NC: re-rated PC) ............................................................... 20

    3.1.15 Recommendation 16 (Originally rated NC: re-rated PC) ............................................................... 21

    3.1.16 Recommendation 18 (Originally rated PC: not re-rated) ............................................................... 22

    3.1.17 Recommendation 19 (Originally rated NC: not re-rated) ............................................................. 22

  • Page 4 of 42

    3.1.18 Recommendation 20 (Originally rated PC: re-rated to C) ............................................................. 23

    3.1.19 Recommendation 21 (Originally rated NC: re-rated to LC) .......................................................... 23

    3.1.20 Recommendation 22 (Originally rated NC: not re-rated) .............................................................. 24

    3.1.21 Recommendation 23 (Originally rated PC: re-rated to LC) .......................................................... 25

    3.1.22 Recommendation 24 (Originally rated NC: re-rated to PC) ......................................................... 25

    3.1.23 Recommendation 25 (Originally rated NC: re-rated to PC) ........................................................ 27

    3.1.24 Recommendation 26 (Originally rated NC: re-rated to PC) ......................................................... 28

    3.1.25 Recommendation 27 (Originally rated LC: re-rated to C) ............................................................. 29

    3.1.26 Recommendation 28 (Originally rated NC: re-rated to PC) ......................................................... 30

    3.1.27 Recommendation 29 (Originally rated NC: re-rated to LC) ......................................................... 31

    3.1.28 Recommendation 30 (Originally rated PC: re-rated to LC) .......................................................... 32

    3.1.29 Recommendation 31 (Originally rated PC: re-rated to LC) .......................................................... 33

    3.1.30 Recommendation 32 (Originally rated PC: re-rated to LC) .......................................................... 33

    3.1.31 Recommendation 33 (Originally rated NC: re-rated to PC) ......................................................... 35

    3.1.32 Recommendation 34 (Originally rated PC: not re-rated) .............................................................. 35

    3.1.33 Recommendation 35 (Originally rated NC: re-rated to PC) ......................................................... 36

    3.1.34 Recommendation 36 (Originally rated PC: re-rated to C) ............................................................ 37

    3.1.35 Recommendation 37 (Originally rated LC: not re-rated) .............................................................. 37

    3.1.36 Recommendation 38 (Originally rated PC: re-rated to C) ............................................................ 38

    3.1.37 Recommendation 39 (Originally rated PC: re-rated to LC) .......................................................... 39

    3.1.38 Recommendation 40 (Originally rated PC: re-rated to LC) .......................................................... 39

    IV. CONCLUSION .......................................................................................................................................... 42

  • Page 5 of 42

    BOTSWANA: 1st FOLLOW-UP REPORT & REQUEST FOR TC RE-RATING

    I. INTRODUCTION

    The mutual evaluation of Botswana was conducted by the ESAAMLG and the mutual

    evaluation report (MER) was approved by the ESAAMLG Council of Ministers in May 2017.

    This follow up report analyses the progress of Botswana in addressing the technical

    compliance (TC) deficiencies identified in its MER. Re-ratings are given where sufficient

    progress has been made. This report also analyses progress made in implementing new

    requirements relating to FATF Recommendations 2, 5, 7, 8, 18 and 21 which have changed

    since the MER was adopted. Overall, the expectation is that countries will have addressed

    most if not all TC deficiencies by the end of the third year from the adoption of their MER.

    This report does not address what progress Botswana has made to improve its effectiveness.

    Progress on improving effectiveness will be analysed as part of a later follow-up assessment.

    II. FINDINGS OF THE MUTUAL EVALUATION REPORT

    Botswana’s ratings for technical compliance are as set out in Table 1 below. As a result of

    these ratings, the country was placed under enhanced follow-up.

    Table 1: MER Technical Compliance Ratings, May 2017

    Rec 1 2 3 4 5 6 7 8 9 10 11 12 13 14

    MER

    Ratings

    NC PC PC PC NC NC NC NC NC NC NC NC