Money laundering is the process of showing revenues from crime as a legal income. Money laundering poses major threats to the country and the world economy. The Republic of South Africa is at an important location for activities such as money laundering, drug trafficking, human trafficking and diamond trading.
The Financial Intelligence Centre Act (FICA), which went into effect in 2001, and the Prevention of Organized Crime Act (POCA), which came into force in 1998, form the basis for fighting money laundering in South Africa. The Financial Intelligence Center (FIC) was established in 2001. South Africa's Financial Intelligence Center conducts audits and controls to prevent money laundering. FIC is responsible for maintaining the integrity of the South African financial system. FIC checks whether financial institutions' reports and records are in line with the procedures.
South Africa is a member of FATF. South Africa became compliant with the global standards set by FATF with the amendments made in AML laws in May 2017. With the amendment of AML laws, AML requirements for financial institutions have changed significantly. With the revision of FICA, customer due diligence requirements have been established for financial institutions. In line with the customer due diligence requirements, the following transactions have become mandatory for financial institutions.
• Identifying and verifying the client
• Determination of customer risk level
• Keeping customer information up to date
• Recording customer information
Financial institutions that fail to meet customer due diligence requirements cannot achieve AML compliance and are subject to administrative penalties.
Money laundering is considered a major crime in South Africa. The South African government aims to prevent money laundering by strengthening anti-money laundering regimes. South Africa prevents financial crimes with the AML regulations they publish. Financial institutions aim to ensure AML compliance by making controls according to regulations. Financial institutions that do not comply with AML compliance are fined. In addition, if money laundering persons are detected, they are sentenced to imprisonment.
Sanction Scanner is an AML compliance software. Sanction Scanner helps businesses in South Africa in AML compliance processes. With Sanction Scanner, you can meet AML requirements and protect your business from fines. You can contact us for information about our AML solutions.