Namibia mulls adopting SA model to combat fraud
Publish date: 03 February 2025
Issue Number: 1111
Diary: IBA Legalbrief Africa
Category: Banking
In response to the growing menace of financial fraud, stakeholders in Namibia’s domestic banking sector are considering the establishment of a central fraud prevention body. According to a New Era report, this initiative is to create a collaborative framework similar to the South African Banking Risk Information Centre (Sabric), which has proved to be effective in combating organised crime and fraud. Johan du Plessis, chief risk officer at FirstRand Namibia, has emphasised the need for collaboration among banks and regulators to tackle the escalating crime. At the briefing, FNB reported a rise in fraud, revealing that during November and December 2024, the bank investigated 103 fraud cases. This figure represents less than 1% of its customer base, but the financial impact has been substantial, with losses exceeding N$4m (R4m). The bank only recovered under N$1m (R1m) for affected clients. ‘Crime, and fraud, is not just a banking concern; it is a national and industry-wide problem that requires a collaborative approach to address effectively’.