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Terrorist Financing National Risk Assessment Report: South Africa

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Overview

The Terrorist Financing (TF) National Risk Assessment (NRA) report for South Africa aims to assess and mitigate the risk of terrorist financing in the country. This ongoing process highlights various vulnerabilities and threats across different sectors.

Key Findings

Weak Administrative and Financial Monitoring Mechanisms

  • NPOs that make donations or provide services outside South Africa are now required to be registered and file information about their activities.

Banks and Financial Institutions

  • Exposed to TF threats when providing services to potentially high-risk customers via:
    • Money Value Transfer Services (MVTS)
    • Alternative remittance providers
    • Crypto asset services providers
    • Virtual platforms

Fintech Ecosystem

  • South Africa’s fintech sector, including vendors, suppliers of crypto mining equipment, and exchanges, poses TF risks due to its vulnerability to exploitation for terrorist activities.

Crowdfunding

  • Enables rapid transmission of funds, making it vulnerable to exploitation for TF purposes.

Proceeds-Generating Crime

  • High levels of business robbery, cash-in-transit heists, and kidnapping for ransom in South Africa may be linked to terrorist financing.

Risks

The likelihood that funds or other assets may be raised in South Africa and moved through, or out of, the country in support of terrorism is assessed to be HIGH. The main risks are linked to:

  • Domestic violent extremism (including right-wing extremism)
  • Sustaining the activities of a small group of IS sympathizers

Conclusion

South Africa has undertaken several proactive measures to counter TF, including legislative changes and updates to its primary counter-terrorism legislation. Effective inter-agency information sharing is considered critical to ensure a holistic and accurate TF NRA. The updated report forms the basis for updating the country’s National Counter Financing of Terrorism Strategy and National Counter Terrorism Strategy.