Treasury calls for urgent ratification of illicit transactions bill

National Treasury has
reiterated its call for the
Financial Intelligence
Centre (FIC) Amendment
Bill be ratified “as soon
as possible”, cautioning
that the longer South
Africa delays signing
the bill into law, the
more it risks tarnishing
its reputation with
globally sound financial
institutions.
This follows a recent
parliamentary session
during which Murray
Michell, director of the
FIC, pointed out that about
nine million suspected
illicit financial transactions
had been reported in the
2016/2017 financial year
to date.
In the 2015/2016
financial year, the FIC
identified about 2 490
illicit products to the value
of R58.9 billion leaving
the country. Michell noted
that this could represent
the illicit outf low of money
from SA.
Responding to Michell’s
presentation, deputy
director general in the
National Treasury for
corporate services, Ismail
Momoniat, pointed out
that his department was
“concerned” over the
fragmented
strategies
among the
various
policing
sectors in the
fight against
illicit trade
and cash
outf low.
The FIC
Amendment
Bill would
tighten the
noose around
money
laundering and illegal
transactions across borders,
bringing South Africa in
line with standards set by
the global Financial Action
Task Force (FATF), he said.
“As a member of the
FATF, SA would be
expected to align its own
financial legislation with
FATF objectives.”
Minister of Finance,
Pravin Gordhan, said
earlier this year that illicit
cash outf lows reduced
the amount of resources
available to
invest. “South
Africa must
move swiftly
to ensure we
have the right
legislation
in place,
updated for the
most recent
developments
and
circumstances.”
He said that
strong, effective
inter-agency
cooperation between
key agencies such as tax
authorities, anti-money
laundering agencies
and law enforcement
agencies was “absolutely
vital”.
INSERT AND CAPTION
Strong, effective
inter-agency
cooperation
between key
agencies is vital.
– Pravin Gordhan