Tag: money laundering

The Financial Action Task Force (FATF) released their report on ‘Money Laundering and the Illegal Wildlife Trade’ a topic that has been sitting on the side-lines for a long time, overshadowed by more prominent criminal ventures, such as drug trafficking.

Several extensive investigations around the globe into the activities of banks have revealed massive failings in the fight against money laundering. The research showed that more and more criminals are exploiting the financial system and laundering their black money by means of quick and immediate remittances.

Being nimble and awake to the rapid changes occurring to bank fraud will be essential. History tells us that things like natural disasters, times of economic instability, and fears of recession or unemployment provide the perfect environment for increased fraud and financial crime.

The Financial Intelligence Centre Act (FIC Act) requires accountable institutions, identified in the Act to fulfil compliance obligations, which are geared to assist in identifying the proceeds of crime, combating money laundering and terrorist financing.

Financial crime in the world is a significant problem that South Africa and the global community have to deal with on a continual basis. A week hardly passes by where the media doesn’t report on a case involving alleged fraud, corruption or looting of funds that did not end up in the hands they were originally intended. This has the potential to devastate the economic balance.

News that Mauritius was added to the EU list of high-risk third countries on 7 May 2020 has understandably caused much consternation amongst fund managers who have fund structures and investment holding vehicles domiciled in Mauritius. While this is certainly a cause of concern, the following should be borne in mind.

Valued at around $23-billion, illegal wildlife trade is the fourth most profitable criminal trafficking enterprise worldwide, yet it's not given the prominence it deserves. But things are changing. In a first-of-its-kind meeting in SA, the financial sector, government and law enforcement met to discuss ways to combat the industrial theft of wildlife.

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.

Cyber attacks against financial services firms and other sectors have increased in number, size and sophistication. Globally, cybercriminals have launched large-scale attacks against banks and other financial institutions, siphoning billions of dollars from bank accounts as well as stealing millions of credit card records.

The Financial Intelligence Centre Act, No 38 of 2001 (FICA) is a piece of legislation introduced in South Africa to combat money laundering and the financing of terrorism (MLFT).