FIC tightens screws on churches
Deadline for financial compliance looms
The Financial Intelligence Centre wants to ensure that churches and other non-profits are not used as conduits for criminal activities.
Churches and other non-profit organisations operating in Namibia must state and provide proof of their funding, as well as file their annual returns every 12 months - or risk action from the Financial Intelligence Centre (FIC).
In enforcing the Financial Intelligence Act of 2012, FIC also requires evidence that the money made by churches and other non-profits is fully accounted for, and used in a manner consistent with the legitimate mandates of these organisations.
The organisations are also required to establish boards or oversight management committees, depending on the size, complexity, resources and scale of operations. Those serving in those capacities must be qualified for the job, with good levels of integrity or ethical standing. They must also present police clearance certificates.
Proof of authority or operational licences must be produced and the organisations must open up to being screened to establish their donors, beneficiaries and beneficial owners. This comes as part of the FIC's efforts to combat money laundering and terrorism financing in the country.
Abuse of power
The surge in the number of new churches in Namibia has raised concerns among the public and policymakers alike, with many calling for stricter regulations to oversee church registration and operations.
The lack of effective supervision and accountability within some religious organisations has led to an alarming concentration of power in the hands of certain church leaders. In several instances, this unchecked power has resulted in the exploitation of followers - mentally, financially and even physically.
Reports have surfaced of church leaders coercing followers into taking out loans to fund the pastors’ extravagant lifestyles. Concerns have been raised that followers go as far as selling their homes and vehicles, all in pursuit of promises made by their church leaders, ranging from prosperity to marriage.
Transparency
To facilitate the process, the FIC has outlined specific requirements, such as providing identification details of founders, proof of authority to operate, governance documents and financial risk management policies. Churches and non-profit organisations are also expected to maintain transparent records of their funding sources and activities.
"Registering with the FIC is not just a legal obligation, it's a crucial step toward ensuring the integrity of charitable efforts in Namibia," the institution noted in a message advertised in local newspapers this week.
Organisations already registered with the FIC must update their information following amendments to the Financial Intelligence Act, which came into effect in June 2023. The deadline for filing annual returns for the 2024 calendar year is 31 January 2025.
Alliance of Christian Churches in Namibia chairperson Reverend Dolly Nengushe expressed concern over the delayed certification of registered churches by FIC.
She told Namibian Sun yesterday that while most churches have complied with the registration process, they are still waiting for certification from the FIC. "I believe this is because their systems are either slow or overwhelmed, possibly due to the unexpected volume of responses. FIC has been involved for a long time. We have been in consultations with them, even to the point of holding meetings to address this issue,” she said.
“The churches are not oblivious to the Financial Intelligence Act. Where churches may lack awareness, as an organisation, we are prioritising a regional capacity-building programme focused on good governance. We are also looking into financial intelligence registrations and legal compliance," she added.
Freeze their accounts
Last year, tensions arose when the FIC reportedly instructed banks to freeze the accounts of several churches, only to reverse the decision later. The deadline for registration under the Financial Intelligence Amendment Act of 2023 was extended to 31 October 2023, after an initial deadline of 29 September 2022.
This move initially required all non-profit organisations in Namibia to register and comply with stringent financial reporting measures, sparking frustration among some religious groups.
In response to the rapid growth of churches, the Council of Churches in Namibia (CCN) urged for tighter regulation.
Last month, CCN president Pastor Enoch Sakama called for adherence to biblical qualifications for ministry, insisting that church leaders be accountable to a recognised body of believers.
[email protected]
In enforcing the Financial Intelligence Act of 2012, FIC also requires evidence that the money made by churches and other non-profits is fully accounted for, and used in a manner consistent with the legitimate mandates of these organisations.
The organisations are also required to establish boards or oversight management committees, depending on the size, complexity, resources and scale of operations. Those serving in those capacities must be qualified for the job, with good levels of integrity or ethical standing. They must also present police clearance certificates.
Proof of authority or operational licences must be produced and the organisations must open up to being screened to establish their donors, beneficiaries and beneficial owners. This comes as part of the FIC's efforts to combat money laundering and terrorism financing in the country.
Abuse of power
The surge in the number of new churches in Namibia has raised concerns among the public and policymakers alike, with many calling for stricter regulations to oversee church registration and operations.
The lack of effective supervision and accountability within some religious organisations has led to an alarming concentration of power in the hands of certain church leaders. In several instances, this unchecked power has resulted in the exploitation of followers - mentally, financially and even physically.
Reports have surfaced of church leaders coercing followers into taking out loans to fund the pastors’ extravagant lifestyles. Concerns have been raised that followers go as far as selling their homes and vehicles, all in pursuit of promises made by their church leaders, ranging from prosperity to marriage.
Transparency
To facilitate the process, the FIC has outlined specific requirements, such as providing identification details of founders, proof of authority to operate, governance documents and financial risk management policies. Churches and non-profit organisations are also expected to maintain transparent records of their funding sources and activities.
"Registering with the FIC is not just a legal obligation, it's a crucial step toward ensuring the integrity of charitable efforts in Namibia," the institution noted in a message advertised in local newspapers this week.
Organisations already registered with the FIC must update their information following amendments to the Financial Intelligence Act, which came into effect in June 2023. The deadline for filing annual returns for the 2024 calendar year is 31 January 2025.
Alliance of Christian Churches in Namibia chairperson Reverend Dolly Nengushe expressed concern over the delayed certification of registered churches by FIC.
She told Namibian Sun yesterday that while most churches have complied with the registration process, they are still waiting for certification from the FIC. "I believe this is because their systems are either slow or overwhelmed, possibly due to the unexpected volume of responses. FIC has been involved for a long time. We have been in consultations with them, even to the point of holding meetings to address this issue,” she said.
“The churches are not oblivious to the Financial Intelligence Act. Where churches may lack awareness, as an organisation, we are prioritising a regional capacity-building programme focused on good governance. We are also looking into financial intelligence registrations and legal compliance," she added.
Freeze their accounts
Last year, tensions arose when the FIC reportedly instructed banks to freeze the accounts of several churches, only to reverse the decision later. The deadline for registration under the Financial Intelligence Amendment Act of 2023 was extended to 31 October 2023, after an initial deadline of 29 September 2022.
This move initially required all non-profit organisations in Namibia to register and comply with stringent financial reporting measures, sparking frustration among some religious groups.
In response to the rapid growth of churches, the Council of Churches in Namibia (CCN) urged for tighter regulation.
Last month, CCN president Pastor Enoch Sakama called for adherence to biblical qualifications for ministry, insisting that church leaders be accountable to a recognised body of believers.
[email protected]
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