WINDHOEK: The Bank of Namibia and the Namibia Revenue Agency on Wednesday launched Namibia’s first Trade Verification System (TVS).
Launched under the theme ‘Where innovation meets opportunity, and where businesses thrive in a connected world’, the system will ensure that the trading of goods is verified. It is expected to reduce the estimated N.dollars 33 billion potential tax-related offenses as estimated by the Financial Intelligence Centre (FIC) in the National Money Laundering, Terrorist and Proliferation Financing Risk Assessment Report of 2021.
Speaking at the launch, Deputy Executive Director for Economic Policy in the Ministry of Finance and Public Enterprises, Oscar Capelao pledged the government’s support in denouncing activities that enable illicit financial flows.
‘Over the years, there has been noted misconduct among importers who breach the country’s laws and regulations. We cannot accept this as normal, and TVS is a tool that we will use as a country to the best of our ability to ensure that there is improved decision-making due to timely data and real-time reporting. The overall goal is to have a tax compliance ratio up as it relates to imports and exports,’ Capelao said.
BoN Deputy Governor Leonie Dunn said TVS also empowers commercial banks and the central bank to run improved controls whilst allowing for the elimination of payment duplications which in consequence reduces the inherent risk of commercial banks from being used as conduits or facilitators of illicit financial flows.
On his part, NamRA Commissioner Sam Shivute added, that the collaborative effort underscores the dedication to promoting transparency and compliance in trade operations.