Corruption tops money laundering threats to CEDA and BDC

Development Finance Institutions (DFI) continue to strengthen measures aimed at safeguarding the sector against financial crimes, with corruption emerging as the dominant money laundering threat to the Citizen Entrepreneurial Development Agency (CEDA) and Botswana Development Corporation (BDC).

Speaking at the launch of the Money Laundering Threat Assessment report this morning, DCEC Senior Assistant Director II-Investigations, Mr Willie Setlhoka, said the assessment was conducted for CEDA and BDC, examining money laundering threats based on predicate offences that generated proceeds of crime during the 2021 to 2025 review period.

Thirty-seven predicate offences were reported during the period, generating proceeds amounting to P185.1 million.

“Corruption has emerged as the dominant predicate offence posing a money laundering threat to Botswana’s Development Finance Institutions,” he saif.

Mr Setlhoka said corruption, fraud and tax evasion were identified as the principal offences affecting the two institutions, with corruption accounting for the largest share of criminal proceeds.

Corruption alone, he said generated P174.7 million, representing approximately 87 per cent of the total value of identified criminal proceeds.

“The findings suggest that DFI products, particularly loans, may be attractive to criminals seeking to disguise or launder proceeds of crime,” he said.