Anti-Money Laundering Efforts in South Africa

Introduction

This report highlights the various aspects of South Africa’s approach to combating money laundering, including legislation, investigations, cooperation by banks and other financial institutions, intelligence gathering, database management, establishment of an investigating unit, and sharing of information.

Key Points

Establishment of Anti-Money Laundering Legislation

• Financial Intelligence Centre Act (FICA): South Africa has established this legislation to combat money laundering.
• Prevention of Organized Crime Act: This act is also in place to prevent organized crime and money laundering.

Investigations and Enforcement

• South African Police Service: Responsible for investigating money laundering cases, including a notable case involving Parshan Bantho, who was found guilty of contravening the Import and Export Control Act.
• Development of Defense Mechanisms: Banks in South Africa have acknowledged the need to develop their own defense mechanisms against money laundering activities.

Cooperation by Banks and Other Financial Institutions

• Single Reference Point: Reporting institutions in South Africa have identified a single reference point within their organization to which staff must report suspected money laundering transactions.
• Defense Mechanisms: The banks in South Africa have acknowledged the need to develop their own defense mechanisms against money laundering activities.

Intelligence Gathering and Database Management

• Individual Structuring Information System (ISIS) Database: Stores information on suspect gangs, syndicates, organizations, and activities of persons for enquiry purposes and combating organized crime.
• Information Sharing: The Commissioner of the South African Revenue Service must be notified of any investigations in terms of the Act, notwithstanding secrecy provisions in income tax legislation.

Establishment of an Investigating Unit

• Commercial Branch of the South African Police Service: An investigating unit will be established in 2001 to gather information on suspicious transactions and proceed with further investigations.

Sharing of Information

• Mutual Cooperation: The Commissioner of the South African Revenue Service must be notified of any investigations in terms of the Act, notwithstanding secrecy provisions in income tax legislation.
• Sharing of Information: With a view to mutual cooperation and sharing of information regarding possible money laundering activities.