South Africa

New Documents

South Africa Publishes National Terrorism Financing Risk Assessment

The Financial Intelligence Centre of South Africa released a report outlining the inherent terrorist financing risks in the nation.

March 20, 2023

South African FIU Issues Guidance for DNFBPs

Following a consultation process, South Africa’s Financial Intelligence Centre issued guidance concerning the risk management and compliance program for designated nonfinancial businesses and professions.

February 2, 2023

South African FIU Celebrates Fusion Centre Achievements

February 2, 2023

South Africa FIC Seeks Comments on Measures to Combat Proliferation Financing

January 19, 2023

South African Police Arrest Suspected Money Launderers, Wildlife Traffickers

December 8, 2022

News

Weekly Roundup: EU Mulls Secondary Sanctions, Binance Turns Gaze Towards Britain, and More

U.K. payments firm’s seed cash tied to organized crime, U.S. lawmakers urge White House to blacklist Hong Kong judges, and more, in the weekly roundup.

May 12, 2023

Midweek Roundup: Former Swedbank Chief Acquitted, Senior FBI Official Secretly Aided Deripaska, and More

Two businessmen charged with hiding yacht’s links to blacklisted oligarch, U.S. regulator fines Popular Bank, and more, in the weekly roundup.

January 25, 2023

Midweek Roundup: Latest UK Database Identifies Sanctions Hits, UK AML Regulator Targets Foreign Banks, and More

January 11, 2023

Weekly Roundup: US Treasury Blacklists Iranian Drone Supplier, Former European FIU Chiefs Face Bribery Charges, and More

January 6, 2023

Weekly Roundup: EU Court Strikes Down Public Beneficial Ownership Registers, HashFlare Founders Trigger US Money Laundering Charges, and More

November 23, 2022

Enforcement Actions

South African Reserve Bank Fines Nedbank Limited R35 Million for AML Weaknesses

The South African Reserve Bank imposed a R35 million fine on the Sandton, South Africa-based bank for anti-money laundering and counterterrorist financing deficiencies related to risk management and enhanced due diligence controls.

August 16, 2022

South Africa Regulator Fines Two Car Dealerships for AML Violations

The Financial Intelligence Centre of South Africa fined ACS Pre-Owned Ltd. R255,575 and separately penalized Atlantis Motors Ltd. R672,526 for various anti-money laundering violations.

May 26, 2022

South Africa FIC Fines Seven Motor Vehicle Dealerships, One Kruger Rand Dealer for Reporting Violations

March 21, 2022

South Africa FIC Fines Truck World (Pty) Ltd R2,664,812 for Failing to Report Transactions

February 9, 2022

South African Reserve Bank: Fedgroup Life Limited to Pay R140,000 for AML Breaches

September 22, 2021

Key Documents

South Africa Implements Law to Combat Organized Crime, Money Laundering

November 24, 1998

South Africa Enacts Amendments to Financial Intelligence Centre Act

May 2, 2017

South African President Approves Anti-Terrorism Legislation

February 11, 2005

South Africa Amends Money Laundering Control Regulations

May 20, 2005

South Africa Amends Cash Transaction Reporting Requirements

August 13, 2010

South Africa Issues Customer Identification Regulations

December 20, 2002

Important Facts

  • The U.S. State Department identifies South Africa as a major money laundering jurisdiction. South Africa's position as the major financial center in the region, its sophisticated banking and financial sector, and its large, cash-based market make it vulnerable to exploitation by transnational and domestic crime syndicates. The largest sources of laundered funds are derived from corruption, fraud, and organized crime. Organized crime, business email compromises, theft, racketeering, currency speculation, credit card skimming, wildlife poaching, theft of precious metals and minerals, human trafficking, stolen cars, and smuggling are additionally popular sources of laundered proceeds. Many criminal organizations are involved in legitimate business operations. In addition to criminal activity by South African nationals, observers note criminal activity by: Nigerian, Pakistani, Andean and Indian drug traffickers; Chinese triads; Taiwanese groups; Bulgarian credit card skimmers; Lebanese trading syndicates; and the Russian mafia. Foreign nationals are using South African nationals to help them send money gained from illegal activities to foreign countries. In some instances, nominee structures have been exploited by criminals who intend to launder illicit funds by mixing them with legitimate assets held on someone else's behalf.
Source: 2018 International Narcotics Control Strategy Report (INCSR)
  • KYC Covered Entities: Banks, credit institutions, post office banks, foreign exchange dealers, securities traders and brokers, entities that issue traveler’s checks, real estate agents, gaming institutions, gold dealers, attorneys, used car dealers, and money lenders
  • STR Covered Entities: Banks, credit institutions, post office banks, foreign exchange dealers, securities traders and brokers, entities that issue traveler’s checks, real estate agents, gaming institutions, gold dealers, attorneys, used car dealers, and money lenders
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: N/A; Convictions: N/A
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013

Technical Effectiveness
Compliant : 3 High : 0
Largely Compliant : 17 Substantial : 0
Partially Compliant : 15 Moderate : 8
Non-Compliant : 5 Low : 3

BASEL i

Rank : 87/141
Score : 4.83/10

TRANSPARENCY INTERNATIONAL i

Rank : 70/180
Score : 44/100

Tax Justice Network i

Rank : 58/133
Score : 56/100