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South Africa Launches Public Consultation on Anti-Money Laundering Legislation Amendments

Published January 13, 2025
1 months ago

In an assertive move to fortify its legal framework against financial crimes, the South African National Treasury has released the 2024 Draft General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill for public commentary. This initiative underscores the country's ongoing commitment to bolster its defenses against illicit financial flows and terrorism financing.





Published in mid-December 2024, the draft bill aims to address the deficiencies highlighted during the Financial Action Task Force’s (FATF) mutual evaluation of South Africa in 2021. This evaluation had previously placed South Africa on a grey list, signaling strategic deficiencies in its anti-money laundering (AML) and counter-terrorism financing (CTF) regimes. The government's proactive steps reflect its dedication to remedying these issues well ahead of the next FATF evaluation slated for 2026/27.


This legislative effort is a collaboration among the National Treasury, the Department of Trade, Industry and Competition, the Department of Social Development, and the Financial Intelligence Centre. Their joint endeavor has resulted in proposed amendments across four crucial pieces of legislation, supervised by different ministerial bodies, marking a significant stride toward a comprehensive overhaul of the existing legal milieu.


Significantly, the bill is not just a bureaucratic update but a participatory process. By inviting public comments, which can be sent to Commentdraftlegislation@treasury.gov.za until the closing of business on February 6, 2025, the government is ensuring that various stakeholders—including businesses, civil society, and the general public—have a voice in shaping the country’s AML and CTF policies.


Following the closure of the commentary period, the National Treasury, along with the associated departments, will engage in a series of public workshops. These events will focus on discussing the feedback and refining the bill based on stakeholder input. Such inclusive dialogue is instrumental in achieving robust and effective legislation.


Upon completion of these consultations and subsequent amendments, the bill will be submitted to the Cabinet for approval. Once green-lighted, it will be presented in Parliament for enactment. This comprehensive and iterative process underscores the importance of legislative transparency and public participation in governance – foundational elements in the fight against money laundering and terrorism financing.


As South Africa continues on its path to fortify its financial systems against global threats, this legislative update is a critical component of a broader national strategy to enhance economic integrity and security. It invites active participation from concerned citizens and organizations, ensuring the law's evolution aligns with practical realities and international standards.


South Africans and international stakeholders alike are encouraged to contribute their perspectives, helping to shape a framework that is both robust and reflective of a collective commitment to justice and financial transparency.


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