“The region must demonstrate that effective mechanisms to combat financial crime are in place”

Kenneth Matomola – Chairperson of CISNA & CEO, Namibia Financial Institutions Supervisory Authority

The first Bi-Annual Meetings of the Committee of Insurance, Securities and Non-Banking Financial Authorities (CISNA) were hosted by the Financial Services Commission in Mauritius from 30 March to 1 April. Regional regulators were convened to advance the harmonisation of non-bank financial frameworks across the Southern African Development Community (SADC). In this interview with Bizweek Africa, Kenneth Matomola, Chairperson of CISNA and CEO of the Namibia Financial Institutions Supervisory Authority, speaks on the complexities of aligning national legislation with regional model laws, the importance of monitoring progress to ensure inclusive financial development, and the urgency of addressing AML/CFT and Fintech risks. He also outlines his priorities to deepen regulatory cooperation and highlights the growing role of Mauritius as a platform for regional dialogue and capacity-building in the financial sector. 

K.V. 

CISNA has been instrumental in advancing the harmonisation of non-bank financial regulation, including the development of model laws. What are the main challenges member states face in adopting and implementing these frameworks at the national level?

As you know, each country has its own unique way in which laws are made. They are passed through national structures such as Parliament, and therefore, it takes a bit longer to pass those laws. But ideally, all countries have agreed to ensure that their laws are aligned with best practices. That makes it easier to overcome those challenges, while taking into account the national specificities of each country.

 

“Digitalisation is here, and there are risks associated with it.”

 

The decisions taken during these bi-annual meetings are ultimately elevated to the SADC Committee of Ministers and can become binding benchmarks across the region. How do you assess the potential impact of this year’s deliberations on financial inclusion and market stability across SADC?

The purpose of the regulations is to ensure the stability and soundness of financial institutions within the region. To achieve this, there is a need for monitoring and evaluation matrices so that progress can be tracked, because not all countries are at the same level of development. Some markets are more developed, while others are not. We do not want to leave anyone behind, so we need to come up with a mechanism. We are doing this through the assistance of the SADC Secretariat. At today’s meeting (Editor’s Note: 1st April), we will also discuss how far this matrix has been developed and how far we are in terms of adopting these model laws, because they have already been agreed upon at SADC and at the ministers’ level.

This meeting marks the active engagement of newly established Technical Committees covering areas such as Fintech, Sustainable Finance, and AML/CFT. In your view, which of these areas poses the most urgent regulatory challenge for the region today, and why?

The two most urgent areas are, first, the AML/CFT Technical Committee, because we have seen that many countries in our region have been placed on the grey list, while some have exited it, and more mutual evaluations will still be taking place in the near future. Therefore, the region must demonstrate that effective mechanisms to combat financial crime are in place. This working group collaborates with ESAAMLG to ensure that we are ready to combat financial crime.

The second very important area is Fintech, especially as we move further into the digital world. Digitalisation is here, and there are risks associated with it. The Fintech working group is therefore crucial to ensure that we are able to manage the cyber risks and other risks associated with digitalisation.

As Chairperson, what are your key priorities for CISNA over the next cycle, particularly in terms of deepening collaboration among regulators and responding to rapid changes such as digitalisation and evolving financial risks?

As Chairperson, my role is to ensure that I coordinate with colleagues within the region so that no one is left out and everyone is involved, because there is so much we can learn from each other. A lot is happening in different jurisdictions, but we need to coordinate that and elevate it to the regional level.

My view is that I will continue engaging with my peers to support the work of CISNA and to bring synergies, because together, as a team, we can do much more. It is through this that we can change the narrative, change how the subcontinent is viewed, and ultimately ensure that the region influences global standards, so that we become a voice in setting standards for the financial sector.

With Mauritius hosting both the CISNA Secretariat and these high-level meetings, how does this positioning contribute to strengthening regional cooperation and reinforcing Mauritius’ role as a financial centre within SADC?

I think Mauritius has taken a very bold step in hosting the CISNA Secretariat. Hosting these events helps create closer dialogue between the Mauritian authorities and other member authorities. It allows them to tap into what the continent can offer.

This can also be used in such a way that there could be partnerships, with joint capacity-building initiatives carried out together by the Mauritian authorities and CISNA. In that way, we can deepen collaboration and also strengthen Mauritius’ position as a financial hub for the region.