Treasury calls for public comment on draft amendments to Money Laundering and Terrorist Financing Control Regulations

CAPE TOWN - Treasury is still plugging away at trying to get South Africa off the greylist of the Financial Action Task Force (FATF) and is proposing amendments to its Money Laundering and Terrorist Financing Control Regulations. 

The draft amendments aim to strengthen South Africa’s system by enhancing the reporting of cash moving in or out of the country to the Financial Intelligence Centre (FIC). 

The minister of finance, Enoch Godongwana, has now advertised the proposed regulations for public input. 

South Africa is hoping to be removed from FATF's greylist by the middle of next year. 

Currently, the FIC receives reports on the cross-border movement of money. 

It also receives information on large cash transactions, suspicious or unusual transactions and property linked to individuals and entities who are subject to targeted financial sanctions. 

The proposed amendments, published in terms of the Financial Intelligence Centre Act, are intended to strengthen the country’s financial system and improve its resilience against abuse by money launderers and terrorist financiers.

Godongwana says it’s critical to the effectiveness of the FIC’s operational capabilities that the information it receives on cross-border financial flows also includes the movement of cash. 

The minister is prescribing a threshold for reporting of the movement of money in or out of the country at R25,000. 

These regulations are intended to strengthen the FIC's ability to detect possible suspicious or unusual activity and to disseminate the relevant information to investigating and prosecuting authorities.

Written comments or suggestions on the draft regulations can be made to Treasury by 19 April.