Financial crime is becoming increasingly sophisticated, creating greater compliance responsibilities for businesses across South Africa.
Money laundering, fraud, cybercrime and other financial crimes do not only affect banks and financial institutions. Businesses such as estate agencies, financial services firms, attorneys and high-value goods dealers can also be used within wider criminal networks.
South Africa’s exit from the Financial Action Task Force (FATF) grey list does not mean that businesses can reduce their focus on compliance. The country is expected to demonstrate that the measures introduced to address financial crime are being properly implemented and applied in practice.
For businesses, this means that FICA and anti-money laundering (AML) requirements remain an important part of day-to-day operations. Understanding who you are dealing with, maintaining appropriate records and identifying potential risks are increasingly important in protecting businesses from being misused for financial crime.
The changing regulatory environment also highlights the need for businesses to keep their compliance processes up to date rather than treating them as a once-off requirement.
For the property industry in particular, this is relevant as estate agents and other property professionals fall within the broader financial crime compliance framework. Businesses need to understand their obligations and ensure that the appropriate processes are in place.
As South Africa continues to strengthen its approach to financial crime, compliance is becoming less about simply meeting a regulatory requirement and more about demonstrating that effective controls are being applied in practice.
Source: EWN – by Paula Luckhoff.
Original article: https://www.ewn.co.za/from-shifting-fica-obligations-to-rising-money-laundering-abuse-upcoming-conference-to-spotlight-evolution-of-financial-crime-in-sa/
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