South Africa is intensifying its efforts to combat money laundering and terrorism financing with proposed amendments to the Financial Intelligence Centre Act (FIC Act).
SA Proposes Amendments to Combat Money Laundering and Terrorism Funding
Enoch Godongwana, the Minister of Finance, has issued Gazette Notice 50450 no 4712, inviting public comments on draft amendments to the money laundering and terrorist financing control regulations.
The proposed amendments focus on strengthening South Africa’s framework for combating financial crimes, particularly in electronic transactions conducted through registered financial institutions.
Key elements of the proposed changes include:
- Strengthening defenses against money laundering and terrorist financing, with emphasis on cross-border movement of cash or bearer negotiable instruments.
- Adoption of a reporting threshold set at R24 999.99, requiring reporting of any conveyance exceeding R25 000 in or out of the Republic.
- Utilization of customs officers at ports of entry and exit, along with SARS’s traveler declarations system, to manage these reports effectively.
The reforms aim to enhance the financial system’s integrity and resilience by expanding the Financial Intelligence Centre’s (FIC) ability to detect and respond to suspicious activity.
Importance of Strengthening the Country’s Financial System
To ensure broad input into the proposed amendments, stakeholders are invited to submit their comments by April 19, 2024.
In a statement, the National Treasury emphasized the importance of strengthening the country’s financial system and resilience against abuse by money launderers and terrorist financiers.
The proposed amendments seek to bolster the FIC’s operational capabilities, particularly in detecting cross-border financial flows, identifying possible suspicious or unusual activity, and disseminating relevant information to investigating and prosecuting authorities.
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