Counter terrorist financing measures

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Rudi Kruger | General Manager | Data Services | LexisNexis South Africa | mail me |


In the past 20 years, threats and incidents of terrorism have grabbed global headlines and urged nations to step up laws against not only the act but also the financing of terrorist activities.

In South Africa more recently, the spotlight fell on the threat of terrorism after a spate of incidents in which alleged bombs were placed in shopping centres around Durban.

These local incidents as well as ongoing global concerns serve as a reminder to companies that they should do their bit in the fight against terrorism by remaining compliant with the relevant regulations, designed to address Counter Terrorist Financing (CTF) and Anti Money Laundering (AML).


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An important interview with Rudi Kruger, General Manager Data Services LexisNexis South Africa, and Dr Ivor Blumenthal, CEO, ArkKonsult, on how the updated FICA Act impacts accountable businesses in terms of their requirement to conduct due diligence on customers who are a potential risk in terms of terrorism and money-laundering activities.


FICA

Businesses operating in South Africa are required to abide by the Financial Intelligence Centre Act (FIC Act), which was introduced to fight financial crime, such as money laundering, tax evasion, and terrorist financing activities.

As required by the Act, companies are required to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations and take responsibility for ensuring that those they do business with are not involved in illegal activity such as terrorism financing.

Forum to be established

In November 2017, it was also announced that government had plans to set up a forum to combat money-laundering and financing of terrorism, which would replace the Counter Money-Laundering Advisory Council (CMLAC).

While the forum is yet to be formally established, non-compliance with existing laws and regulations or failure to prevent incidents could result in unlimited fines for companies, jail terms, director disqualification and individuals could be imprisoned for up to 10 years. Companies, therefore, must take measures to ensure they understand their suppliers, partners, acquisition targets, contractors, resellers, grant applicants, customers and other associates effectively and efficiently.

Relevant measures include:

  • Researching and staying up-to-date on key developments with respect to key clients, suppliers, contractors, or partners to thoroughly understand the companies and individuals with whom the company interacts and/or does business.
  • Researching and

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Read this article by Rudi Kruger, General Manager Data Services LexisNexis South Africa, as well as a host of other topical management articles written by professionals, consultants and academics in the October/November 2018 edition of BusinessBrief.


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