New laws target money laundering

6 December 2010

South Africa’s Financial Intelligence Centre has been given more powers to combat money laundering and terror financing in the country.

The Financial Intelligence Centre (FIC) was set up to identify the proceeds of unlawful activities and combat money laundering and terror financing. When necessary, it provides information to the South African Revenue Service and intelligence agencies to follow up.

The Financial Intelligence Centre Amendment Act of 2008 came into operation from Wednesday, effecting a number of amendments to the 2001 Act.

Better measures to ensure compliance

“These amendments bring about a significant change to the legislative framework of the FIC as it broadens our functions and those of supervisory bodies to ensure greater compliance,” FIC director Murray Michell said in a statement.

“It also strengthens our ability to detect and to prevent illicit monies from being laundered through our financial system.”

The amendments give the FIC various administrative measures to ensure compliance, including the authority to impose fines. The amended legislation also requires all accountable and reporting institutions to register with the FIC between 1 December 2010 and 1 March 2011.

Sapa