In a remarkable display of financial acumen, the Financial Intelligence Centre (FIC) of Namibia has significantly impacted domestic tax collection efforts. 

A recent report revealed that the FIC’s diligent monitoring and enforcement of anti-money laundering (AML) and counter-terrorism financing (CFT) regulations have substantially increased capital tax revenue. 

This achievement is a testament to the organisation’s commitment to safeguarding the financial system and ensuring compliance with tax regulations.

The FIC 2023/24 annual report revealed that the FIC directed the freezing of 28 bank accounts with a cumulative value of N$33.1 million, a 105% increase from the previous year’s N$15.4 million. 

This proactive approach has bolstered tax collections and underscored the successful collaboration between the FIC and law enforcement agencies (LEAs). 

The FIC’s efforts have resulted in the recovery of N$47.2 million in taxes, with an additional N$39.6 million raised, contributing significantly to the national treasury.

The Namibia Revenue Agency (NamRA) reported a notable increase in tax collections, with N$45.1 billion collected from April to September 2024. 

This represents a N$7.1 billion increase compared to the same period in 2023, highlighting NamRA’s continued efforts to enhance revenue collection and improve tax compliance. 

The revenue generated during this period comprised 65% from domestic taxes and 35% from customs and excise.

Furthermore, the FIC’s success can be attributed to its adoption of advanced technologies and data analytics, which have significantly improved the detection and prevention of illicit financial activities. 

The report added that public awareness campaigns have also played a crucial role in fostering a culture of transparency and accountability, leading to higher levels of adherence to tax regulations among financial institutions and businesses.

The additional funds generated through these efforts have been allocated to various developmental projects, including infrastructure development, healthcare and education. 

This improves public services and stimulates economic growth and job creation, underscoring the FIC’s impactful role in the nation’s economic development.

With ongoing efforts to strengthen its regulatory measures and foster public awareness, the FIC is poised to maintain its pivotal role in ensuring the integrity of Namibia’s financial system. -mndjavera@nepc.com.na