Structural Fragilities and the Governance of Money Laundering: Law Enforcement Perspectives from Namibia
Abstract:
Money laundering remains a persistent challenge in global governance, yet it is often framed primarily as a technical and regulatory issue addressed through compliance with international standards. This article challenges this dominant perspective by conceptualising money laundering as a governance problem embedded within broader institutional, political, and transnational dynamics. Drawing on qualitative data from key informant interviews and focus group discussions with law enforcement officers in Namibia, the study examines how vulnerabilities and consequences of money laundering are experienced within everyday enforcement practice. The findings reveal a persistent gap between formal compliance and substantive enforcement, reflecting what is conceptualised as a compliance–capacity paradox. While Namibia has adopted international anti–money laundering (AML) frameworks, enforcement is constrained by institutional fragility, including limited capacity, weak inter-agency coordination, and governance deficits such as corruption and political interference. The study further identifies a structural mismatch between transnational financial systems and territorially bounded legal frameworks, which enables illicit financial flows to exploit gaps in cross-border cooperation. In addition, patterns of selective enforcement undermine institutional legitimacy and weaken the overall effectiveness of AML efforts. By situating money laundering within a governance framework, the article demonstrates that it is not only a financial crime issue but also a developmental and institutional challenge with implications for market integrity, public trust, and state capacity. The study contributes to emerging scholarship that calls for context-sensitive and governance-oriented approaches to AML, particularly in developing and fragile institutional environments. It argues that effective responses must move beyond compliance-driven reforms toward strengthening institutional integrity, enhancing accountability, and addressing structural asymmetries in the global financial system.References:
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