WINDHOEK – In an aim to tighten laws in the country, Namibia authorities have announced that anyone looking to enter the Forex Trading sector should have a minimum starting capital of N$1.6 million.
FX Magazine has gathered that the South West African country is looking to ensure thee Forex Trading industry is regulated on strict laws.
The Namibian website reports that the gov ernment has unveiled new laws where a person seeking to trade in foreign currency in Namibia should have minimum starting capital of N$1.6 million, approved by the Ministry of Finance and be willing and able to pay N$5 200 to get such approval.
It is reported that the above statement is an extract from the rules referred to by the Bank of Namibia (BoN) in a recently released statement explaining foreign exchange (Forex) trading, and the requirements for persons carrying out such activities to register with the central bank.
A person seeking to trade in foreign currency in Namibia should have minimum starting capital of N$1,6 million, approved by the Ministry of Finance, and be willing and able to pay N$5 200 to get such approval. https://t.co/414gzqOC35 pic.twitter.com/k91eiIEo7e
— The Namibian (@TheNamibian) October 22, 2019
The deputy director of communications Kazembire Zemburuka stated that trading in forex in Namibia is not open to everybody.
In addition, Zemburuka referenced the Currency and Exchanges Act, the Exchange Control Regulations, and the Rules and Orders issued under these laws, whilst adding that these provide guidance on the foreign exchange market in Namibia.
“Under these laws, only licensed authorized dealers (ADs) such as commercial banks and authorized dealers with limited authority (ADLAs), commonly known as bureaus of exchange, can deal in foreign exchange,” he stressed.
The Bank of Namibia also stated there are seven ADs and seven ADLAs registered with them who deal and trade in foreign currency in Namibia, as well as facilitate foreign exchanges.
“The exchange or conversion of the Namibia dollar into any foreign currency is regulated to control the use of Namibia’s foreign currency reserves in the best interest of the economy,” stated Zemburuka.
“It should be noted that Namibian residents 18 years and older are entitled to an investment allowance of N$6 million per year for investment purposes abroad. The utilization of this allowance can only be done through an authorized dealer, while the choice of investment is up to the discretion of the individual.
“It should be borne in mind that the above-mentioned transactions can only be done with the individual’s own money. Any person or entity transacting in foreign exchange without complying with the above applicable laws and the process described above does so unlawfully.”
Additionally, members of the public are entitled to a single discretionary allowance of N$1 million per year for any foreign exchange transaction through authorized dealers, and authorized dealers with limited authority.
Zemburuka said individuals making use of these licensed entities to acquire foreign exchange do not need to register with the Bank of Namibia.
This comes after a well-known Forex Trader and self-acclaimed financial expert Michael Amushelelo was reportedly been arrested in Namibia facing charges of money laundering and fraud.
The Namibian website reported that two self-styled foreign exchange dealers Amushelelo (28) and Gregory Cloete (28), appeared in the Windhoek Magistrate’s Court on four criminal charges.
Meanwhile, the duo is alleged to have received more than N$17 million [R17 million] from the public without being authorized to do so in terms of the Banking Institutions Act and the Forex Trader has been granted bail.