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2025-01-21

Directive to Establish an AML/CFT Compliance Function

The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) has issued a revised directive mandating non-bank financial institutions to establish a dedicated Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) compliance function. The updated framework aligns operations with the Financial Intelligence Act, specifies mandatory training subjects for compliance officers, and reduces the frequency of required independent compliance reviews. Regulated entities must fully adhere to these provisions and applicable financial services laws to effectively detect and prevent the commission of financial crimes.

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Botswana

Non-Bank Financial Institutions Regulatory Authority

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Tel: +267 310 2595/ 3686100 Fax: +267 310 2376/310 2353 Plot: 3rd Floor Exponential Building 54351 CBD, Gaborone Private Bag: 00314, Gaborone, Botswana Email: info@nbfira.org.bw Website: www.nbfira.org.bw

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November 4, 2024

NBFIRA 3/3/10-II (2)

To: Anti Money Laundering Compliance Officers (AMLCOs)-Non-Bank Financial Institutions

RE: DIRECTIVE TO ESTABLISH AN AML/CFT COMPLIANCE FUNCTION

  1. The above matter refers.

  2. In exercise of the powers conferred by Section 56(2) of the Non-Bank Financial Institutions Regulatory Authority Act, 2023 as read with Section 49 (1) of the Financial Intelligence Act 2022 (FI Act), the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) hereby issues the revised Directive to Establish an AML/CFT Compliance Function (AML/CFT Directive 1). The revised Directive replaces the 2020 Directive on Establishing a Compliance Function and Designating a Compliance Officer(s).

  3. Among other changes, the new Directive brings alignment to the FI Act, while prescribing the necessary training subjects and reducing the frequency of required independent reviews on compliance function.

  4. Regulated entities shall adhere to the Directive and ensure full compliance with the FI Act and other financial services laws to effectively detect and prevent commission of financial crimes.

Yours sincerely,

[Signature]

Mooketsi Ramanteba Acting Deputy Chief Executive Officer (Regulatory)

NON-BANK FINANCIAL INSTITUTIONS REGULATORY
AUTHORITY
3RD FLOOR EXPONENTIAL BUILDING
PLOT 54351 NEW CBD
PRIVATE BAG 00314 GABORONE BOTSWANA
PHONE:+267 310 2595/+267 3686100 FAX:+267 310 2376

Directors: T E. Gadingwe (Chairperson) H. Hlanti K S. Gaamangwe L. Maruping Dr. L. Senatla P. Masalela,T Modise,T Rammidi-Mokgwathi

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