Invitation for public comments on draft amendments to Money Laundering and Terrorist Financing Control Regulations in terms of the Financial Intelligence Centre Act
10 April 2024
The Minister of Finance, Mr Enoch Godongwana, has on 08 April 2024 via Gazette Notice 50450 no 4712, invited public comments and written submissions on draft amendments to the Money Laundering and Terrorist Financing Control Regulations, in terms of section 77(5)(a) of the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001 – ‘the FIC Act’).
The draft amendments aim to strengthen South Africa’s system to combat money laundering and terrorist financing by enhancing the reporting of the conveyance of cash or bearer negotiable instruments into or out of the Republic. The draft amendments are proposed to be made in terms of section 77(1) of the FIC Act, read with section 30 of the FIC Act, to the Money Laundering and Terror Financing Control Regulations. Section 30 of the FIC Act provides for a requirement to report the conveyance of cash or bearer negotiable instruments into or out of the Republic to the FIC.
The objective of section 30 of the FIC Act is to ensure that information relating to the cross-border movement of cash and bearer negotiable instruments is made available to the FIC. The FIC currently receives reports on cross-border electronic funds transfers (section 31 of the FIC Act). In addition, the FIC receives reports on large cash transactions (section 28 of the FIC Act), suspicious or unusual transactions (section 29 of the FIC Act) and property that is linked to persons or entities who are subject to targeted financial sanctions (section 28A of the FIC Act).
The proposed draft amendments are aimed at strengthening the country’s financial system and improve its resilience against abuse by money launderers and terrorist financiers. It is critical to the effectiveness of the FIC’s operational capabilities that the information it receives concerning cross border financial flows be expanded to include cross-border movement of cash and bearer negotiable instruments. This is envisaged to strengthen the FIC’s ability to detect possible suspicious or unusual activity and to disseminate the relevant information to investigating and prosecuting authorities.