The Government of Botswana will submit a request for re-rating following reforms in its legislative framework brought by the recent passing of Financial Intelligence Bill which had been published by the Minister of Finance and Economic Development, Peggy Serame.
The National Assembly this week passed the Financial Intelligence Bill, 2021 (Bill No. 34 of 2021) during an Emergency Parliament Meeting. The Bill was first published on 23rd December, 2021.
The Act aims to re-enact with amendments the Financial Intelligence Act; to continue the establishment of the Financial Intelligence Agency and to re-constitute the National Financial Intelligence Coordinating Committee as a high level committee; to provide for third parties to perform certain customer due diligence measures on behalf of specified parties; to enable the Financial Intelligence Agency to initiate an analysis of information based on information in its on possession or information received from other sources to establish a suspicious transaction, and for matters connected therewith and incidental thereto. The Financial Intelligence Bill has eight parts with a total of 63 clauses.
Serame highlighted that these laws are drawn because they are in line with international agreements the country has signed upon. Although implementation of the laws passed in parliament is a still a challenge.
She urged public institutions to introspect if there are grievances within the community and deal with them, emphasising that the perceptions people have about public servants and institutions are often based on a certain form of truth.
By way of background; the Financial Action Task Force (FATF) has 40 Recommendations which countries have to comply with in order to tackle money laundering, terrorist financing and the financing proliferation.
During 2017 assessment; Botswana was found to have serious strategic deficiencies in her anti-money laundering and combating the financing of terrorism and proliferation framework. No recommendation was rated Compliant, 23 of the recommendations were non-compliant resulting in the country being grey listed by the FATF in 2018 and blacklisted by the European Union in 2020.
The country went right ahead into remedial actions towards being removed from the grey list, passing 25 pieces of legislation in 2018 and a further six in 2019. Resulting in the country being removed from the grey list in October 2021.
To address the deficiencies identified during assessments carried out by the Eastern and Southern Africa Anti Money Laundering Group (ESAAMLG) and Financial Action Task Force (FATF).
There was a proposal to overhaul the Financial Intelligence Act and consequential amendments to several other laws. The amendments of these laws aim to strengthen the Anti-Money laundering, countering Financing of Terrorism and proliferation efforts in Botswana and will also put the country in a good position during the next Mutual Evaluation in 2024.
In her presentation’ Serame enunciated that; “the procedure at ESAAMLG is that after a country has amended its legislation, they are allowed to request for rerating of FATF Recommendations that are still rated Non-Compliant and partially compliant.”
Serame indicated that, “the request for re-rating has to be made at least six months in advance of the ESAAMLG Task Force Plenary meetings. This means for Botswana, the request for re-rating can only be considered during the September meeting of ESAAMLG.
In its request for re-rating, the country has to submit all other information supporting the request for re-rating to the ESAAMLG Secretariat. This supporting information refers to relevant laws, regulations or other AML/CFT/CFP measures that are in force and effect. It is crucial that the FI Bill and others are enacted expeditiously for the country to submit a request for re-rating in February 2022.”
Member of Parliament for Selibe Phikwe West, Dithapelo Keorapetse has expressed concern over the Financial Intelligence Bill stating that the discussion of the bill is relevant to what Botswana is trying to do in prevention of financial and economic crimes, that is physical and revenue crimes.
“However; if virtual assets have value and can be digitally traded; it means that physical and revenue crimes can be committed using cryptocurrencies. ESAAMLAG and FATF are very clear that money laundering and terrorist financing exist with the purview of virtual assets,” he said.
“What needs to happen is public education surrounding virtual assets and the risks that come with them. Research ought to be done on the implications surrounding virtual assets, this in turn will help guide in drawing laws and regulations. Without established regulation and oversight, the virtual assets space will become the wild west of the financial industry.”
The re-enactment of the Financial Intelligence Act has caused consequential amendments to 13 other pieces of legislation which have already caused an uproar in the country, these are; Companies Act, Trust Property Control Act, Counter Terrorism Act, Criminal procedure and Evidence Act, Criminal Procedure and Evidence Act, Extradition Act, Mutual Assistance in Criminal Matters Act, Biological and Toxin Weapons (Prohibition) Act, Nuclear Weapons (Prohibition) Act, Precious and Semi-Precious Stones (Protection) Act and the Real estate Professionals Act.
Prices for cereals or staple foods in Botswana and other Southern African countries continue to rise at a slower pace, following trends in the global markets, according to the latest November 2022 Food Price Monitoring and Analysis by Food Agricultural Organization (FAO) of the United Nations.
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Botswana Institution Of Engineers (BIE), has last week hosted a gala dinner in which they appreciated engineers who worked tirelessly and with dedication for 10 years from 1983 to steer the BIE to its current status.
The event that was held at the Phakalane Golf Estate had brought together young, experienced and veteran engineers and was held under the theme “Vitalize the dignity and eminence of all professional engineers”.
Explaining the theme, the institution’s treasurer, Thanabalasingam Raveendran said that engineers were looked upon reverentially with respect as the educated but with time it seems to have deteriorated. He indicated that there is a need to change the narrative by all means.
“The BIE exists for the welfare and the betterment of us Botswana engineers, we need to recognize specialised units within our Institution. We Engineers strongly believe in Engineers make it happen” Raveendran said.
He indicated that under the theme they appeal to all engineers to energize, to attain quality of being worthy of honour and respect and to achieve recognized superiority amongst the Society.
Raveendran stated that engineers need to ensure their end product is of good quality satisfying the end users expectations and engineers must be honest in their work.
“Approximately 8000 engineers registered with Engineering Regulatory Board (ERB) are not members of the BIE, engineers need to make every effort to recruit them to BIE” he said.
He alluded that BIE being a society, it currently needs to upgrade itself at par with professional institutions elsewhere like the UK and USA.
He further stated that BIE has to have engineering units of specialised disciplines like Civil/Mechanical/electrical etc
“As President Masisi indicated in his inaugural speech, the young people, who make 60 percent of the population of this country, are the future leaders and therefore investing in them is building the bridge to the future” said Raveendran
Kandima indicated that BIE has a memorandum of Understanding with Engineers Registration Board (ERB), where BIE is a recognised provider of CPD training, mentorship programmes and more importantly IPD undertaking to upgrade the skills and know-how of our engineers.
“For us to achieve our mandate and make worthwhile changes to engineering in Botswana, we have to be totally focused and act with intent” said Kandima.
Furthermore, Stephen Williams, past president of the BIE from 1986-1988 told the engineers that the BIE provides a fertile environment where they can meet, share ideas and grow professionally.
“The BIE is also a nesting place for graduate engineers to learn from their peers and seniors, it also cater for engineering technicians and technologists and so nobody in the technology field is left out” he said.
He further indicated that Botswana Government provides a conductive environment for growth of engineering professionals.
“It must be stated that the Botswana Government recognises the existence of BIE and it can further be stated that the government enables ERB to carry out its mandate as a regulator of engineering professionals” said Williams
He plead with engineering companies to recognize and support BIE as it is the only source of engineering personnel’s for various Industries .
Furthermore, when giving his farewell speech, Michael Pinard , a past president of the institution said how they are viewed as engineers by the general public might be due to some lack of appreciation as to exactly what role they play in the development of the country.
“The BIE slogan is aptly coined-Engineers make it happen, in other words, what man dreams engineers create” Said Pinard.