Despite some progress in AML/CTF compliance frameworks, SA needs to get better at investigating and prosecuting criminals
As confirmed by SA Finance Minister Enoch Godongwana during the country’s mid-term budget statement at the start of November, South Africa came up short in investigating and prosecuting money laundering and, therefore, will stay on the grey list until at least January 2025.
And all indications are that South Africa seems to be committed to making the January 2025 anti-money-laundering deadline. With a specific focus on SA’s investigations and prosecutions authorities.
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Renewed Efforts
In both the mid-term budget speech and numerous media declarations, the SA government has said it’s focused on empowering the SA Police Service, Hawks, National Prosecuting Authority (NPA), Special Investigating Unit (SIU), State Security Agency (SSA), the Reserve Bank, Financial Sector Conduct Authority (FSCA) and South African Revenue Service (SARS) to step up the country’s prosecuting efforts.
This will apparently include new technology, training and personnel allocation – including possible reforms within these bodies, which should send a clear message to the country that the time for implementation is coming.
A good time to review your own AML compliance, then see how to get sanction screening in Africa and learn about AML compliance for microlenders.
Moving Faster
Naturally, some doubt the country’s commitment and ability to see these things through, commenting that SA’s legal system tends to move at a glacial pace when compared to the speedy prosecution of, for example, FTX’s Sam Bankman-Fried – charged on 12 December 2022, Bankman-Fried was convicted within 11 months on 2 November 2023.
And there seems to be some ground for the concerns, if one takes into consideration the country’s already seen two international financial institutions outright refuse to take deposits from anyone in SA, specifically in the crypto space, yet the country seems happy to delay crypto asset regulation until January 2025 – technically after the FATF deadline.
That said, we mustn’t forget that SA has its various regulators, and the law already requires AML compliance from anyone in the industry. And, in fact, it seems much more likely that a government-private sector alliance is what’s really needed to get SA off the greylist.
In other words, yes, investigating and prosecuting authorities are gearing up to ramp up activities, but they will need the information to work with – information that can only come from consumer and transaction information within the industry itself – so don’t be surprised if, in conjunction with investigators, regulators suddenly begin ramping up compliance monitoring,
If you haven’t asked yourself yet, now’s a good time to check: Am I AML compliant? See how to save on sanction screening.
And see why the SA Reserve Bank has fined Grindrod Bank R10m for non-compliance.
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