South Africa Strengthens Anti-Money Laundering Regulations

In an effort to combat money laundering and terrorist financing, South Africa has introduced new anti-money laundering regulations. The General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022 aims to strengthen the country’s financial system by amending several key laws.

Key Changes

• Introduced new definitions for “accountable institution” and “beneficial owner”
• Requires trustees and nonprofit organizations to maintain accurate records of beneficial ownership
• Enhances transparency and accountability in various sectors, including trust property, nonprofit organizations, finance, and companies

Amendments to Specific Acts

Financial Intelligence Centre Act

• Provides additional due diligence measures
• Empowers the Centre to request information from other organs of state

Companies Act

• Requires companies to keep accurate records of beneficial ownership

Financial Sector Regulation Act

• Introduces a new chapter on beneficial owners

Implementation Timeline

The amendments will come into effect in two phases:

• Some sections will commence on December 31, 2022
• Others will take effect from April 1, 2023

Expected Outcomes

These regulations are expected to improve South Africa’s ability to combat money laundering and terrorist financing, while also enhancing transparency and accountability in the financial sector.

Government Emphasis

The government has emphasized the importance of these amendments in maintaining the integrity of the country’s financial system and preventing illicit activities. The changes are part of ongoing efforts to strengthen anti-money laundering regulations and ensure that South Africa remains a responsible player in the global financial system.