The Financial Action Task Force (FATF), the inter-governmental regulating body, are in South Africa to evaluate the country’s compliance with global money-laundering standards. The results could be damaging, as there are billions at stake. Financial crime is on the rise in SA despite the amendment of laws designed to curb it. In the past year, financial crime has hit almost half the companies, according to a survey by the Financial Intelligence Centre.
Representatives from FATF, the IMF and the Eastern & Southern Africa Anti-Money Laundering Group will carry out the FATF evaluation. Their report, known as a mutual evaluation in industry lingo, will give an in-depth breakdown of SA’s system for combating criminal abuse of the financial system. The team will assess SA’s technical compliance with the FATF 40+9 recommendations, plus its effectiveness in implementing these.
In other words, are we making a dent in the fight against financial crime?Yes, regulations may have been strengthened, but SA still loses between $10bn and $25bn every year in illicit financial flows. The evaluation result is key to SA’s status as an investment destination. Being flagged means that certain countries and organisations can’t do business with you. Find out more at https://www.dailymaverick.co.za/article/2019-10-27-sas-anti-money-laundering-measures-under-global-spotlight/