An exploration of the current regulatory aspects of money laundering in South Africa
Journal of Money Laundering Control
ISSN: 1368-5201
Article publication date: 8 February 2021
Issue publication date: 21 October 2021
Abstract
Purpose
Money laundering activities were allegedly rampant and poorly regulated in the South African financial markets and financial institutions prior to 1998. In other words, prior to the enactment of the Prevention of Organised Crime Act 121 of 1998 as amended (POCA), there was no statute that expressly and adequately provided for the regulation of money laundering in South Africa. Consequently, the POCA was enacted to curb organised criminal activities such as money laundering in South Africa. Thereafter, the Financial Intelligence Centre Act 38 of 2001 as amended (FICA) was enacted in a bid to, inter alia, enhance financial regulation and the combating of money laundering in the South African financial institutions and financial markets.
Design/methodology/approach
The paper provides an overview analysis of the current legislation regulating money laundering in South Africa. In this regard, prohibited offences and measures that are used to curb money laundering under each relevant statute are discussed. The paper further discusses the regulation and use of customer due diligence measures to combat money laundering activities in South Africa. Accordingly, the regulation of customer due diligence under the FICA and the Banks Act 94 of 1990 as amended (Banks Act) is provided.
Findings
It is hoped that policymakers and other relevant persons will use the recommendations provided in the paper to enhance the curbing of money laundering in South Africa.
Research limitations/implications
The paper does not provide empirical research.
Practical implications
The paper is useful to all policymakers, lawyers, law students, regulatory bodies, especially, in South Africa.
Social implications
The paper seeks to curb money laundering in the economy and society at large, especially in the South African financial markets.
Originality/value
The paper is original research on the South African anti-money laundering regime.
Keywords
Acknowledgements
This article was supported in part by the National Research Foundation of South Africa (NRF), Grant Number: 112115. In this regard, the author wishes to acknowledge and thank the NRF for its valuable support. Moreover, the author is also grateful to Ms Sharon Munedzi for her insightful comments during preliminary drafting of this article. For related comments and information see Ms Munedzi’s Master of Laws (LLM) dissertation entitled: The Reliance on Customer Due Diligence to Enhance the Combating of Money Laundering under the Financial Intelligence Centre Amendment Act 1 of 2017, North West University, 2018, pp. 30-42.
Citation
Chitimira, H. (2021), "An exploration of the current regulatory aspects of money laundering in South Africa", Journal of Money Laundering Control, Vol. 24 No. 4, pp. 789-805. https://doi.org/10.1108/JMLC-10-2020-0120
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited