The clock is ticking for anyone (Namibian or international) who wants to trade Virtual Assets – 13 October is the deadline for crypto registration in Namibia
(Breaking: Read all about it: Namibia greylisted by FATF)
The deadline for Namibia’s Financial Intelligence Centre (FIC)’s 26 September directive for any Virtual Asset Service Providers (VASPs) who want to do business in Namibia to register is 13 October 2023. Leaving a limited window of time to ensure compliance.
This is what you need to know about crypto registration in Namibia.
Who Needs to Comply?
Virtual Asset Service Providers (VASP) in Namibia are defined according to the Virtual Assets Act of 2023 as any person or entity that, as a business, provides virtual asset services on behalf of others. Whether you are a local VASP or a foreign entity targeting the Namibian market, compliance is mandatory.
This includes:
- Institutional Investors entering the virtual asset market.
- Cryptocurrency Exchanges and platforms facilitating virtual asset trading.
- Miners and validators of transactions on blockchain networks.
- Blockchain Developers who receive virtual assets for their services.
- Payment Service Providers who accept virtual assets as payment.
How to Comply
Compliance with these regulations involves a few essential steps:
FIC Registration
Complete the FIC registration form and gather the necessary attachments.
These attachments include proof of incorporation or registration, proof of licensing or market entry authorization from the Bank of Namibia (BoN), and documented risk assessment outcomes.
Policy and Procedures
Develop and provide a policy document or standard operating procedures outlining how your VASP manages risks associated with money laundering, terrorism financing, and proliferation financing. Controls to mitigate these risks should be in place.
Compliance Officer
Nominate a Compliance Officer within your management team. This person will be the point of contact with the FIC and coordinate the implementation of risk management measures as per the law.
Additional Requirements
Depending on the FIC's risk assessment of your VASP upon registration, additional requirements may be requested. This could include providing identification and address details of internal oversight or governance bodies, such as Boards or Management Committee Members. These members must be fit and proper and may require valid Police Clearance Certificates.
Where to Find Documents
You can find relevant documents and guidance notes on the FIC website, including the Virtual Assets Act of 2023 and other directives: FIC Namibia Documents
Act Now, Compliance is Crucial
The urgency of compliance cannot be overstated. VASPs that do not meet the registration and licensing requirements by the 13 October 2023, deadline expose the financial system to significant risks. Non-compliance may result in fines, orders to cease operations, and denial of access to critical financial services.
In this rapidly evolving financial landscape, staying ahead of regulations is essential for the integrity of the industry and to protect against financial crimes. Act now, ensure you meet the requirements, and play your part in safeguarding the financial system of Namibia. Don't wait; time is of the essence!
Also get an inside look at balancing cost vs AML compliance in Africa, see how to save on sanction screening, learn about AML compliance for microlenders and the process for AML in microfinance.
And see why the SA Reserve Bank has fined Grindrod Bank R10m for non-compliance.
Also see how greylisting impacts the JSE in South Africa.
