Christopher Malan, the Executive Manager for Compliance and Prevention at the Financial Intelligence Centre (FIC), recently discussed the country's progress and the steps it is taking to address concerns raised by the FATF.

In a recent interview, Malan provided some context about the grey-listing. The process began with an assessment by the FATF in 2019, which found significant weaknesses in SA’s anti-money laundering measures and its efforts to combat terrorism financing. The full report, which was delayed due to the COVID-19 pandemic, was released in 2021. It revealed that SA's systems were not functioning as effectively as needed, sparking a series of legislative changes and improvements aimed at addressing these gaps.

“While we made meaningful improvements, it wasn’t enough to avoid being grey-listed in 2023,” Malan said. “The FATF outlined 22 key areas that required immediate action. We worked hard to introduce new laws and systems, which were officially implemented by December 2022. However, it’s clear that we need to continue pushing forward with greater urgency.”

One of the main areas of focus now is the oversight of non-financial businesses and professions, including estate agents, lawyers, and casinos. These sectors are considered high-risk for money laundering, and as a result, the Financial Intelligence Centre has introduced stricter compliance monitoring. However, Malan highlighted that while 70% of businesses have now submitted the required data, more participation is needed for the system to function effectively.

Malan urged businesses in high-risk sectors, particularly those in property and legal services, to improve their reporting, stating that the information provided helps target the right entities and combat financial crimes more effectively.

--ChannelAfrica--