Enforcement Procedures
Objectives of the Department
The Legal, Policy, and Enforcement Department ensures compliance with the provisions of FIA through its Enforcement Division. The Enforcement Division is responsible for executing the administrative enforcement powers of the FIC.”
What Triggers an Administrative Sanctions?
Sanctions are triggered after the FIC identifies non‑compliance through compliance assessments or reported breaches by other competent authorities
Under Section 56 of the FIA, administrative sanctions may be imposed when an Accountable Institution, Reporting Institution, or other regulated person fails to comply with any obligation under the FIA.
Examples of such non‑compliance include (list is not exhaustive):
- Failing to register with the FIC when providing any of the designated services listed under Schedule 1 and 3 of the FIA;
- Failure to develop, adopt and implement a FIA Compliance Program:
- Failure to report Suspicious Transactions or Activities (STRs/SARs) in terms of section 33 of the FIA.
Applicability of Administrative Sanctions
Administrative sanctions in terms of section 56 of the FIA may be imposed on:
- Accountable Institutions (AIs) listed in Schedule 1 of the FIA;
- Reporting Institutions (RIs) listed in Schedule 3 of the FIA;
- Any institution or person that fails to meet obligations imposed by the FIA and its accompanying regulations.
Types of Administrative Sanctions Available to the Centre
Section 56 of the FIA empowers the FIC to impose a range of administrative sanctions depending on the seriousness of the breach. Sanctions may include:
a) A Written Caution or Reprimand
- Used for less severe non compliance.
- Example: A caution issued for failure not to timeously inform the FIC on change in the FIA Compliance Officer
b) A Directive to Take Remedial Action
- The Centre may order the institution to remediate specific non compliance within a set timeframe.
c) Restriction or Suspension of certain Business Activities
- Applied where non‑compliance poses serious ML/TF/PF risks.
d) Suspension of a licence to carry on business activities
- The Centre may limit the type or scale of activities an institution may conduct.
e) A Financial Penalty
Publication of Administrative Sanction Imposed
The Centre in terms of Section 56(14) may publish the decision and the nature of the sanction imposed.
This enhances transparency and promotes deterrence.
Purpose of Administrative Sanctions
Administrative sanctions serve to:
- Enforce compliance with AML/CFT/CPF obligations
- Mitigate or reduce ML/TF/PF risks to the financial system
- Protect integrity of the Namibian Financial system
