Financial Crime World

South Africa Fights Financial Crime: Know How to Report It

The Alarming Reality of Financial Crime in South Africa

South Africa’s high crime rate has been a major concern for years, with the country’s GDP being consumed by approximately 19% due to illicit activities. The Financial Action Task Force (FATF) Mutual Evaluation of South Africa in 2021 revealed that more than half of reported crimes are proceed-generating, targeting innocent citizens and their livelihoods.

Common Types of Domestic Proceed-Generating Crimes

  • Tax Evasion and Fraud: Illicit activities involving tax evasion and fraud are prevalent in South Africa.
  • Corruption and Bribery: Corruption and bribery are significant threats to the country’s financial system.
  • Ponzi Schemes and Digital Banking Scams: Ponzi schemes and digital banking scams have become increasingly common.
  • Environmental Crimes: Poaching and illegal mining are also prevalent environmental crimes.

South Africa as a Transit Point for International Criminal Networks

Given its strategic position in the southern African region, South Africa is exposed to international criminal networks that use the country’s financial system to launder illicit proceeds. To combat these threats, it is essential to prevent criminals from profiting from their activities and financing further crime or terrorism.

The Role of Stakeholders in Combating Financial Crime

To effectively tackle financial crime, stakeholders must implement robust Anti-Money Laundering (AML) and Counter Terrorism Financing (CFT) measures. This includes:

  • Complying with Legal AML/CFT Obligations: Businesses and organizations must comply with all relevant laws and regulations.
  • Understanding Risk Exposure: Stakeholders must understand the risks associated with their activities and take mitigating measures accordingly.
  • Implementing Mitigating Measures: Adequate measures must be implemented to mitigate identified risks.

The Public’s Role in Reporting Suspicious Financial Activity

The public also plays a critical role in reporting suspicious financial activity. If you suspect that someone is involved in financial crime, report it to the relevant authorities immediately. In South Africa, you can report financial crimes to:

  • The Financial Intelligence Centre (FIC): 0800 202 937
  • The South African Revenue Service (SARS): 0800 00 7277
  • The Hawks Crime Stop: 082 11 1111

Your reporting may be the key to preventing further crime and protecting innocent citizens. Remember, a suspicious transaction or activity could be the tip of an iceberg of illicit financial flows. Don’t hesitate to report it.