South Africa announces new legislation to combat money laundering, terrorism financing

South Africa has passed the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill.

South Africa’s National Assembly has passed the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill. This demonstrates the government’s commitment to not only addressing the issues which risk the country being greylisted by the Financial Action Task Force (FATF), but to rooting out and preventing financial crime and the proceeds of corruption.

Five pieces of legislation amended

This is according to Finance Minister Enoch Godongwana in his opening remarks on 22 November. The Bill amends five pieces of legislation to satisfy technical compliance deficiencies. The Amendment Bill addresses deficiencies in at least 14 of the 20 recommendations, including an appropriate enhancement of powers and procedures for regulatory authorities.

In parallel, the Protection of Constitutional Democracy against Terrorist and Related Activities Amendment Bill, 2022 (administered by the Minister of Police) is currently before Parliament and is anticipated to be passed soon. It deals with two further core recommendations. The outstanding four deficient Recommendations are being addressed via policy processes and mechanisms.

South Africa: Adhering to international best practices

“When enacted into law, it will improve South Africa’s adherence to international best practices in combating financial crimes and corruption and stand as the strongest possible evidence of this house’s commitment to fighting financial crime,” said Minister Godongwana.