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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.<\/p>\n
National Treasury on Wednesday issued a call for public comment on\u00a0a bill\u00a0that aims to combat money laundering and terrorism financing by amending four pieces of legislation, including those governing non-profit entities and companies.<\/p>\n
Listen\/read:
FIC zones in on companies\u2019 geological footprints to combat money laundering
Are the FIC\u2019s teeth sharp enough to combat corruption?<\/p>\n
It also proposes giving South Africa\u2019s Financial Intelligence Centre (FIC) \u2013 a unit mandated to assist in identifying the proceeds of crime \u2013 broader powers.<\/p>\n
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.<\/p>\n
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It would further compel banks to more closely scrutinise new technologies and digital platforms for money laundering and the financing of terrorist activities.<\/p>\n
\nIt would also expand protection for whistleblowers who report suspicious activities.<\/p>\n<\/blockquote>\n
The Paris-based Financial Action Task Force (FATF), a global watchdog, removed South Africa from its dirty-money list in October, boosting the country\u2019s prospects of attracting more foreign investment. The continent\u2019s largest economy was included on the so-called grey list in February 2023.<\/p>\n
Read:
SA removed from another \u2018naughty list\u2019, this time by the EU
Grey list exit: SA can\u2019t rest on its laurels
South Africa is off the dirty-money grey list<\/p>\n\n\nADVERTISEMENT:<\/p>\n
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The bill addresses \u201cthe remaining deficiencies\u201d 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.<\/p>\n
Read:\u00a0What our FATF exit teaches us about effective reform<\/p>\n
The changes \u201cwill better prepare the country\u201d for the next evaluation that starts in mid-2026 and ends in October 2027, it said.<\/p>\n
\u00a9\u00a02026\u00a0Bloomberg<\/p>\n
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