Lawyers and estate agents the main culprits holding SA back from exiting grey list
The issue is the submission of risk and compliance return (RCR) questionnaires required by the Financial Intelligence Centre.
Money laundering, Image from Pixabay
The Money Show's Stephen Grootes interviews Christopher Malan, Executive Manager for Compliance and Prevention at the FIC.
While lauding businesses that have helped bring South Africa closer to exiting the international Financial Action Task Force (FATF) grey list, more needs to be done says the Financial Intelligence Unit (FIC).
The country has not yet met the FATF requirement fully that will enable the identification of higher risk DNFBPs or non-financial businesses and professions.
South Africa was penalised by the global anti-corruption watchdog in 2023 for not having adequate measures in place to prevent money laundering and terror financing.
DNFBPs include legal practitioners, estate agents, trust service providers (including accountants), and dealers in high-value goods such as precious stones or Krugerrands.
Legal practitioner and estate agent businesses are the biggest culprits when it comes to noncompliance in submitting risk and compliance returns (RCRs).
These entities who have long outstanding RCRs must submit the documents to the FIC without further delay, the body says in a statement.
Stephen Grootes interviews Christopher Malan, the FIC's Executive Manager for Compliance and Prevention.
They have made progress, Malan emphasizes, but more needs to be done, and urgently.
"We have to sustain the progress we achieved and we have to ensure that we continue to effectively supervise - that's the context."
"These DNFBPs need to be doing more to improve their submission rate."
Christopher Malan, Executive Manager: Compliance & Prevention - FIC
Malan says they have tried to find a rational reason for some businesses not doing what is required of them.
"It is a long questionnaire they have to complete, but I don't think it's too complex."
"If these entities have a risk and compliance management programme in place, they should have the necessary information to prepare for this plan which seeks to basically protect them from abuse from clients that want to launder money, or from terror finance."
Christopher Malan, Executive Manager: Compliance & Prevention - FIC
For more detail, listen to the interview audio at the top of the article