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