National Call for Comments: Strengthening South Africa's Anti-Money Laundering Laws

In a significant move to bolster South Africa's legal framework against money laundering and terrorism financing, the National Treasury has put forward the draft General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, 2024, seeking public insight and suggestions. The announcement, intended to refine and expand existing regulations, underscores the government's commitment to comply with international standards and strengthen the country's financial systems.

Published on 13 December 2024 in the Government Gazette, this draft Bill brings proposed amendments to four critical pieces of legislation under the administration of several governing bodies. These laws include the Financial Intelligence Centre Act, the Financial Sector Regulation Act, the Companies Act, and the Nonprofit Organisations Act — each overseen by designated ministers.

Aimed at addressing gaps highlighted in the 2021 mutual evaluation by the Financial Action Task Force (FATF), the draft Bill specifically targets minor yet crucial deficiencies. Amendments range from enhancing procedures for customer due diligence, especially with anonymous clients, to tightening compliance related to beneficial ownership obligations and implementing stringent penalties for non-compliance.

Also on the agenda are modifications to adapt to new technologies and stronger enforcement provisions which are deemed necessary for the protection of the financial sector's market conduct and anti-money laundering (AML) efforts.

Public participation is a pivotal aspect of this legislative process. National Treasury, in partnership with the Departments of Trade, Industry and Competition, and Social Development, as well as the Financial Intelligence Centre, is encouraging feedback from all stakeholders. This collaborative approach is anticipated to refine the proposals effectively.

Interested parties are urged to submit their comments and suggestions via email to Commentdraftlegislation@treasury.gov.za by 6 February 2025. Following this phase, a series of public workshops will be organized to discuss the received comments, ensuring broad-based engagement before the final presentation of the draft Bill to the Cabinet and subsequently, to Parliament.

This legislative update comes at a crucial time when South Africa prepares for the next FATF evaluation in 2026/27, aiming to secure a robust legislative framework capable of safeguarding the financial integrity of the nation against the backdrop of global financial crime challenges.