Mark Kingon: 9 cases of illicit financial flows from SA to be probed

Illicit financial flows are defined as the illegal movement of funds from one country to another.

Acting South African Revenue Services Commissioner Mark Kingon. Picture: LinkedIn

CAPE TOWN - Acting South African Revenue Service (Sars) National Commissioner Mark Kingon says nine cases of illicit financial flows from South Africa have been earmarked for investigation, involving a total of more than R9 billion.

Illicit financial flows are defined as the illegal movement of funds from one country to another.

The money can come from criminal activities such as drug trafficking, fraud or theft, or can refer to legally earned money that’s being transferred in breach of exchange control regulations.

Kingon was briefing Parliament’s Standing Committee on Finance earlier on Wednesday.

He says a special inter-agency team has been set up to coordinate efforts to crack down on illicit financial flows.

“There are currently nine cases identified for a multi-agency, multi-disciplinary approach. The total estimated financial flows in relation to these nine cases is R9 billion. It is significant.”

The inter-agency working group involves Sars, the Financial Intelligence Centre and other entities.

Kingon says the cases are being evaluated.

“We are seriously concerned by what we are seeing.”

The acting commissioner says Sars has not in the recent past been efficiently tackling the scourge of illicit financial flows, the illicit tobacco trade and other illegal flows of capital.

(Edited by Winnie Theletsane)