Tag: Anti-Money Laundering (AML)

After demonstrating significant progress in strengthening the effectiveness of its anti-money-laundering (AML) and counter-financing of terrorism (CFT) measures, South Africa was recently removed from the Financial Action Task Force’s (FATF) grey list.

South Africa has tightened Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations since the Financial Action Task Force (FATF) greylisting in 2023. The country has now been recently removed from the FATF greylist after two years of scrutiny. However, financial crime remains widespread.

Just a few years ago, neobanks and fintechs were regarded as disruptive competitive threats to incumbent Financial Institutions (FIs). Now, the script has changed. These startups and innovators are viewed as potential merger and acquisition (M&A) opportunities or as partners for larger banks.

Tax evasion goes far beyond legal tax avoidance. It is the practice of illegally hiding income or profits to avoid paying tax, costing countries over $500 billion a year. In many cases, tax crime and hidden owners depend on opaque ownership structures that conceal who really owns assets, where transactions are flowing, and other patterns of criminal behaviour.

Flashy Artificial Intelligence (AI) applications like generative art and self-driving cars dominate headlines. Still, AI and Machine Learning (ML) play a quiet background role in our daily lives. Nowhere is AI’s growing influence more apparent than in financial services. AI systems are increasingly protecting both the financial system and its customers.

Designated Non-Financial Businesses and Professions (DNFBPs) registered with the Financial Intelligence Centre (FIC) have shown positive efforts. Importantly, their commitment has significantly contributed to progress. And as a result, South Africa is now closer to exiting the Financial Action Task Force (FATF) grey list.

The 2025 Budget Speech, delivered on 12 March 2025, made it clear that financial crime enforcement and compliance are priorities. The government has allocated increased funding for forensic investigations, regulatory oversight and tax compliance monitoring

FICA Compliance and Penalties are becoming critical considerations for South African businesses, as non-compliance can lead to severe financial and reputational consequences.

Television series like Breaking Bad and Ozark reflect the public’s fascination with money laundering and its criminals. Yet, in reality, laundering is far more sophisticated, dangerous, and far-reaching than the fictional exploits of Walter White or Marty Byrde. Unregulated gambling and financial crime are increasingly interconnected, providing criminals with new avenues to launder illicit funds globally.

It is that time of year again when you are swapping out your summer wardrobes for your festive season attire. You are having a long-overdue de-clutter and booking annual check-ups for the family. While you are at it, take the opportunity for your annual personal estate review to re-evaluate your estate documents and give the administrative side of your life a thorough spring-clean too!