Southern Africa: SADC Fortifies Region Anti-Money Laundering

Gaborone — The Southern African Development Community (SADC) has escalated its regional fight against financial crime by operationalising the SADC Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) committee.

The establishment of the SADC AML/CFT Committee demonstrates the unwavering commitment of SADC member states to combating money laundering and terrorism financing, marking a significant step toward safeguarding the region's financial integrity.

Delivering a keynote address during the fifth meeting of SADC (AML/CFT) committee in Gaborone on Monday, Acting Minister of Finance, Mr Wynter Mmolotsi, applauded the committee for its continued dedication to mitigate the effects of criminal economic activity and promote the integrity and stability of the financial markets.

He said the meeting came at a time when member states were grabbling with socio economic spill-over effects of prevailing geo-political developments world wide.

Such dynamics, he said had exposed structural vulnerabilities in SADC economies including dependence on imports, constrained fiscal space, limited diversification and exposure to limited shocks affecting trade, food security, energy and financial stability.

He said it was against that backdrop that the region was called upon to strength collaboration and to turn challenges and vulnerabilities into opportunities.

"By addressing illicit financial flows, money laundering and terrorism financing, the SADC region could reinforce domestic resource mobilisation and drive economic growth as well as transform regional stability," he said. In that regard, Mr Mmolotsi indicated that Botswana had undertaken significant reforms to strengthen its anti-money laundering policies and counter financing of terrorism frameworks.

He said government was particularly proud of the establishment of the institute for combating illicit financial flows in 2024 in collaboration with the University of Botswana.

"The institute serves as a center for research and capacity building as well as knowledge exchange within Botswana, with plans to expand its reach across the region in the near further," he said.

The initiative, he said reflected government's strong believe that education, skills development, innovation and regional cooperation were critical tools in combating illicit financial flows, money laundering, terrorist financing and related financial crimes.

"Following the 45th SADC heads of states and governments which approved the draft agreement to amend the SADC protocol of finance and investment annex 12, member states were