Gone are the days when making an EFT payment to someone within the CMA was fast, cheap and painless. It seems CMA regulators caved in on FATF pressure (and to reverse their greylisting), allegedly because treating cross-border payments as domestic transactions was not compliant with international Anti-Money Laundering and Combating of Financing of Terrorism (AML/CFT) standards. The new rules remove a vital benefit for CMA residents and their countries being part of the CMA. As fund administrators, RFS must regularly pay fund benefits to someone living in SA or another CMA country. CMA residents living outside Namibia were used to receiving their benefits promptly, at a low cost and without red tape. These new rules do not amuse them. One ‘The Namibian’ reader asked in ‘SMS of the day” of 3 September, “Can ‘The Namibian’ please investigate the impact of the UBO rules and other FATF implemented by FIC on the average Namibian? It seems all Namibians are treated as criminals and not citizens of an independent country...” Another reader commented, “How can you [BON and FIC] treat Namibians as criminals and contribute to the deteriorating business environment and increasing costs of doing business?”
The problem with the global financial system is that rules are made for those who cannot stand up for themselves but do not apply to those who made the rules. (How else do Western countries pride themselves on sponsoring ‘regime change’ all over the world?)
The fact that CMA countries may use their own currencies at home does not change the fact that all financial transactions outside CMA countries are Rand-denominated. For all intents and purposes, the Rand is the official currency of all CMA countries for international trade. European Union countries, similar to CMA countries, use a single currency for financial transactions with countries that are not members. No FATF currency controls are imposed on Euro transactions between European Union member countries. The EU operates under the principle of free movement of capital, which includes the free transfer of funds and payments between member states!
Will the CMA, the SADC, other multilateral, regional organisations and the African Union start using their leverage to stand up against the Western colonial mentality? May BRICS be successful in its endeavours!
Important notice and disclaimer
This article summarises the understanding, observation and notes of the author and lays no claim on accuracy, correctness or completeness. RFS Namibia (Pty) Ltd does not accept any liability for the content of this contribution and no decision should be taken on the basis of the information contained herein before having confirmed the detail with the relevant party. Any views expressed herein are those of the author and not necessarily those of RFS.