Bill proposes tougher new laws around money flow monitoring

South Africa has proposed changes to laws that would give the government stronger tools to monitor money flows and impose tougher penalties on those engaging in financial crimes.

National Treasury on Wednesday issued a call for public comment on a bill that aims to combat money laundering and terrorism financing by amending four pieces of legislation, including those governing non-profit entities and companies.

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It also proposes giving South Africa’s Financial Intelligence Centre (FIC) – a unit mandated to assist in identifying the proceeds of crime – broader powers.

If passed, the bill would allow the FIC to conduct lifestyle audits and expand the tools it has to track cash moving into and out of the country.

It would further compel banks to more closely scrutinise new technologies and digital platforms for money laundering and the financing of terrorist activities.

It would also expand protection for whistleblowers who report suspicious activities.

The Paris-based Financial Action Task Force (FATF), a global watchdog, removed South Africa from its dirty-money list in October, boosting the country’s prospects of attracting more foreign investment. The continent’s largest economy was included on the so-called grey list in February 2023.

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The bill addresses “the remaining deficiencies” the FATF identified in a 2021 report and also during the remedial process that saw South Africa exit the grey list, the National Treasury said in a statement on Thursday.

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The changes “will better prepare the country” for the next evaluation that starts in mid-2026 and ends in October 2027, it said.

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