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Botswana could exit FATF “greylisting” in October 

Botswana remains on the grey list of the Financial Action Task Force (FATF) and the “black list” of the European Union, a status quo that highlights the country as one of the high-risk jurisdictions to deal with money.

The far-reaching implications of these listings is a compromised Foreign Direct Investment drive for Botswana. In particular, these listings mean investors now have to exercise some caution and restrain when thinking about putting their money in Botswana. On Tuesday, Minister of Finance and Economic Development Peggy Serame said that Botswana could see itself out of the “undesirable listing” by October this year.

Serame called for united and concerted efforts towards liberating Botswana out of this financial noncompliance tag. She said the delisting could be archived by concerted efforts from all stakeholders: players in the financial services sector, non-financial services businesses, regulators, and every individual who deals with transactions.

Botswana is a founding member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). This regional body subscribes to the Financial Action Task Force (FATF) to combat money laundering and financing of terrorism and proliferation.

One of the membership obligations to ESAAMLG is for Botswana to be peer-reviewed by the other Member States and other international bodies like the World Bank, IMF or FATF.
The most recent assessment for Botswana to gauge compliance with the FATF standards was conducted by ESAAMLG in 2016 and culminated with publishing the Mutual Evaluation Report (MER) in 2017.

Following the discussion and adoption by the Task Force and approval of the MER by the Council of Ministers, the country was placed under enhanced follow-up.  This led to a one (1) year observation period in which the country was expected to improve its technical compliance (legislative framework) by correcting the deficiencies identified in the MER.

After one year, in October 2018, the Task Force decided that the country was not taking sufficient steps to implement the recommendations made by the assessors in the MER.  The Task Force recommended that Botswana be referred to the International Cooperation Review Group (ICRG) for monitoring and potential listing often referred to as the ‘FATF greylisting”.

Following the FATF greylisting, the EU placed Botswana on its list of high-risk third countries, often referred to as the ‘black list.’ In 2018, Botswana and FATF agreed to an Action Plan that had six items with several timelines. In terms of Risk and coordination, Botswana was told to develop and implement a risk-based comprehensive national AML/CFT strategy, assess the risks associated with legal persons, legal arrangements, and NPOs, and operationalize the modernized company registry to obtain and maintain essential information and Ultimate Beneficial Ownership information.

Botswana was further advised to enhance the capacity of the supervisory staff, including by developing risk-based supervision manuals and providing adequate training, implement risk-based AML/CFT supervision and impose sanctions against violations.

Furthermore, Botswana was instructed to improve analysis and dissemination of financial intelligence by the Financial Intelligence Unit, including operationalizing an online Suspicious Transactions Report filing platform and prioritizing high-risk predicate crimes, and enhancing the use of financial intelligence among the relevant law enforcement agencies.

Regarding terrorism financing investigation, Botswana was instructed to develop and implement a Counter Financing of Terrorism Strategy, operationalize the Counter-Terrorism Analysis and Fusion Centre, and ensure the Terrorism Financing investigation capacity of the law enforcement agencies.

In 2018, the 11th Parliament passed 25 pieces and, later, six others related to AML/CFT/CFP. At the just ended Parliamentary session of the 12th Parliament, lawmakers passed the Financial Intelligence (Amendment) Act to address the definition of beneficial ownership.

Cabinet approved the National AML/CFT/CFP Strategy of 2019-2024 in October 2019. At the June 2021 FATF Plenary meetings, the FATF made the initial determination that Botswana had substantially addressed the Action Plan and that this warranted an on-site assessment to verify that the implementation of Botswana’s AML/CFT/CFP reforms is in place and is being sustained.
Furthermore, an assessment was to be instituted to check if the necessary political commitment remains to sustain implementation in the future.

Serame said in a televised press briefing that Botswana’s exit from the FATF grey list and the EU black list would be determined by the outcome of the on-site assessment, which will be discussed at the FATF Plenary in October 2021.

She revealed that the Botswana delegation attended the Eastern and Southern Africa Anti-Money Laundering Group 42nd Task Force of Senior Officials meeting from the 26th August to the 6th September 2021, followed by the Council of Ministers on the 7th September 2021.

She told the media that at these meetings, Botswana was commended for making progress in complying with the FATF standards by addressing deficiencies in her AML/CFT/CFP framework.
“We are making all these efforts of complying with the FATF standards so that we guard against our financial system being used for money laundering, terrorism financing and proliferation financing,” she said.

“We are hopeful that at the October 2021 FATF Plenary meetings, the outcome of the on-site visit undertaken by the FATF in August 2021 will bear positive results, leading to Botswana being delisted from the FATF greylisting,” she said. However, Minister Serame called on all stakeholders to support the government to remove Botswana from the greylisting.

“As Government continues its efforts of putting in place the necessary legislative and institutional framework, due diligence must be exercised by all institutions, including the ordinary Motswana, so that no one is found dealing with financiers whose credibility is wanting,” she said.

The minister reiterated that all players in the financial services sector had a role to play: “It is important that where unsolicited funds are offered, the individual or entity so receiving the offer must ensure that the funds being offered are not associated with unlawful acts. If we are not diligent, criminals may use unsuspecting people and entities to launder proceeds of crime.”

She reiterated that the government is committed to doing all within its power to remove the country from the FATF “grey list” and the EU “black list”. However, she noted that to achieve that requires the cooperation and assistance of financial institutions, designated non-financial businesses and professions and individuals to ensure full compliance with AML/CFT/CFP rules and regulations.

“These efforts will not only assist us to be removed from these mentioned lists but are for the benefit of our country to maintain a high standard of financial prudence and an economy which genuine investors can have the confidence to invest in,” Serame explained.

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BOMU, DBS roadshow partners in crime

18th March 2024

The Department of Broadcasting Services (DBS) roadshow has found and trusted the Botswana Musicians Union (BOMU) as a companion it could trust in empowering and facilitating the creative sector, in particular, performing artists and musicians.

BOMU exits to ensure that musicians in Botswana are supported by all platforms and services that are aligned to what they do, which at most times is the production of music.

In 2023, the Union put together grand music awards prized at a whooping P3 million. Indeed, the man working behind the awards, Seabelo Modibe of Total Music Group understood the assignment. For the very first time, BOMU awards left an impressive mark, leaving people murmuring.

With that said and done, BOMU became a very important stakeholder in the on-going DBS roadshow. The relationship started in 2022 when the project was initiated. In this massive project, BOMU plays a role of mobilizing and registering new artists.

In the previous years, the Union has been clouded by dispute and back-and-forth. It was accused of being bungling, purposeless and served no interests of its members (artists). Following the effective execution of the eleventh music awards, artists progressively joined BOMU and the DBS roadshow added cherry on top.

Some of the artists who made it to the Top 30 of the DBS roadshows much-admired the platform, saying it played a major part in changing their lives. Some of them started getting booked, changed their mindsets and consider music as a business entity.

These are some of the few nuggets of wisdom they raked from the man behind the roadshow, Thato Sikwane. He is known as DJ Fresh in the music sector and his company, Big Dawg Productions is the brainchild behind the DBS roadshow.

Matter of fact, DJ Fresh and Modibe worked on this concept together with an aim of unearthing new talent in as much as music is concerned. In order to achieve this goal, the duo had to engage BOMU to allow for the artists to have a body that governs them.

When speaking in an interview with WeekendLife, BOMU Secretary General Rasina Rasina said the roadshow is actually a blessing in disguise, as it was initially considered a tall show.

“This is a much-needed platform for a sector that has been deteriorating over the years. We believe it is here to resurrect the music industry. The DBS roadshow cultivate talent from scratch and nurtures it. This will help us as a Union to have a solid foundation and as BOMU, as we are highly appreciative.”

Rasina said BOMU is very much aware of Season One challenges, adding that they too experienced them. “As BOMU, we therefore appreciate that it was the beginning. Naturally, beginnings have challenges but we are optimistic that everything will be in order as together as a team, we can work to solve all pressing matters that delay the progress of artists in Botswana.”

Successful artists during the DBS roadshow will reap from what they sow. BOMU has been allocated a budget to help artists access the roadshow. Rasina has however refused to divulge the total amount but specified that they ensure artist participation and mobilization, as well as feeding.

“We have learnt from past challenges. We do not pay artists but we assist them with transportation funds to mobilize them to attend the roadshow and showcase. What we offer them is not payment. We ensure their participation, transport mobilization and feeding. They compete, showcase and get the platform they need. We partner with them to deliver a product. Essentially, there is a car, a record deal, airtime deal and cohesion.”

Thus far and during the Season 2 roadshow, BOMU has registered an average of five hundred (500) members. In the process, it has managed to rebuild an average of ten BOMU District chapters nationwide.

Rasina commended the government for coming up with a project that caters for the welfare of artists and creative minds in Botswana.

“Our expectations from the next season is that it will be bigger and better. We appreciate the contribution of DBS and the recent focus towards the creative industry by government. Importantly, it is important to note that the creative industry should never be treated from a blanket approach view. Every region, district, village or town has its own talent. The heritage of Botswana is defined by the creative industry talent.”

 

 

 

 

 

 

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Report links child poverty to disability

12th March 2024

Child poverty is a pressing issue that affects millions of children around the world, and the link between child poverty and disability is a particularly concerning aspect of this problem. The recent research paper published by the Botswana Institute for Development Policy Analysis (BIDPA) sheds light on the stark reality that children with disabilities are more likely to be living in poverty compared to their non-disabled peers.

The findings of the research paper reveal that children with disabilities face higher levels of deprivation in basic capabilities such as education and health. This means that they are often excluded from essential services and opportunities that are necessary for their well-being and development. The wider gap in education outcomes between children with disabilities and their non-disabled peers highlights the systemic barriers that prevent children with disabilities from accessing quality education.

Moreover, the higher rates of deprivation in health and food security among children with disabilities further exacerbate their vulnerability to illness and malnutrition. This not only impacts their physical well-being but also hinders their overall development and potential. The research paper also highlights the economic disparities faced by children with disabilities, indicating that they are more likely to experience poverty across demographic and economic variables.

The implications of these findings are profound and call for urgent action to address the inequalities faced by children with disabilities. Affirmative action is needed to ensure that policies and interventions are specifically targeted towards addressing the unique needs of children with disabilities. It is crucial to prioritize the inclusion and empowerment of children with disabilities in all aspects of society to ensure that they have equal opportunities to thrive and succeed.

In conclusion, the link between child poverty and disability is a critical issue that requires immediate attention and action. It is essential for policymakers, stakeholders, and communities to come together to create a more inclusive and equitable society where all children, regardless of their abilities, have the opportunity to reach their full potential. By addressing the root causes of poverty and discrimination faced by children with disabilities, we can work towards building a more just and compassionate world for all.

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Botswana’s internet rated the second fastest in Africa

8th March 2024

Botswana continues to make significant strides in its digital trasnformation aspirations, as it secures its position among the top-ranking African countries for mobile internet speed. Based on statistics from the Speedtest Global Index, Botswana has been rated the second fastest mobile internet speed in the continent, with an impressive 43.79Mbps, according to a recent study by Business Insider Africa.

This accomplishment demonstrates Botswana’s dedication to improving the quality of broadband internet in the country; and re-affirms its position as a leader in Africa’s telecommunications and ICT services. “The acknowledgment of Botswana’s internet as the 2nd fastest in Africa reflects our commitment to cultivating a digitally inclusive society,” remarked Mr. Keabetswe Segole, Acting CEO of Botswana Fibre Networks (BoFiNet). “This achievement highlights our ongoing endeavors to enable all citizens to participate in the digital economy.” BoFiNet, the leading provider of telecommunications infrastructure in Botswana, has been instrumental in shaping the nation’s digital landscape.

Reflecting on BoFiNet’s contribution to Botswana’s digital connectivity, the Acting CEO stated:”BoFiNet takes pride in its role in securing Botswana’s position as the 2nd fastest country in Africa for mobile internet. Our robust fibre optic and microwave network has been pivotal in delivering high-speed connectivity to both urban and rural areas, ensuring access to reliable internet services for all citizens. We remain committed to fostering innovation and digital inclusion, thereby paving the way for a prosperous digital future in Botswana.” Through the recently launched SmartBots Village Connectivity project, 1,138 premises across 144 villages in different Botswana districts are able to connect to this fast internet.

Botswana’s population is utilising connectivity creatively as a result of a boom in mobile penetration, which is advancing the nation’s digitalisation. Rapid advancements in mobile high-speed internet are causing a digital revolution in Africa, bringing about changes in areas including the economy, education, healthcare, and empowerment.

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