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South Africa

South Africa

Global AML Guide

1. Are there any sanctions imposed against South Africa?
    There are no sanctions imposed on South Africa.
2. What are the regulated institutions in South Africa?
    Banks, real estate, cash-based markets, lawyers, pension funds, pension fund administrators, insurance companies, brokers, public accountants who provide investment advice, members of the stock exchange, etc.
3. Who are the local regulatory authorities in South Africa?
    The Financial Intelligence Center, Money Laundering Advisory Council, South African Police (Service SAPS), The Law Society of South Africa, etc.
4. What is the status of South Africa's FATF?
    South Africa is one of the member states obliged to comply with FATF recommendations. South Africa FATF is not included in the list of countries with regional AML Deficiencies. The last Mutual Evaluation Report of FATF in South Africa was made in 2009. According to this report, South Africa is compliant with 9 of the FATF recommendations, and it is largely compliant for 14.
5. Which global regulations South Africa have to comply with?
    Since South Africa is a member of the Financial Action Task Force (FATF), it must follow and comply with FATF regulations.
6. What are the AML obligations of the businesses in South Africa?
    In South Africa, it has to comply with some obligations as required by the law and the FATF recommendations. Institutions with money laundering risks in South Africa should conduct a risk assessment and establish an AML Compliance Program based on this risk assessment. Apart from that, they should take measures such as Customer Due Diligence measures to be able to identify their customers' interests and understand who they really are.
7. What are the local AML laws and regulations in South Africa?
    The Financial Intelligence Centre Act (FICA), Prevention of Organized Crime Act (POCA), The Protection of Constitutional Democracy Against Terrorist and Related Activities Act 33 of 2004, The Prevention and Combating of Corrupt Activities Act 12/2004, etc.
8. What are the penalties for failure to comply with Anti-Money Laundering law in South Africa?
    In South Africa, under the Prevention of Organized Crime Act (POCA) law, individuals convicted of money laundering can be fined up to ZAR 100 million or sentenced to imprisonment for up to 30 years.
9. What are the contact details of the relevant regulators in South Africa?
    The Financial Intelligence Centre (FIC)
    Private Bag X177, Centurion, 0046
    T: 012 641 6000

    South African Police (Service SAPS)
    Koedoe Building, 236 Pretorius Street, Pretoria
    T: 012 393 1000
10. Are violations of anti-money laundering obligations also subject to criminal sanctions in South Africa?
    Yes, in South Africa, non-compliance with anti-money laundering regulations and laws is punishable by imprisonment not exceeding 15 years or fines not exceeding ZAR 10 million
11. What can oblige institutions do to prevent money laundering and to comply with AML regulations in South Africa?
    In South Africa, the obliged institutions should make a risk assessment and establish compliance programs in their businesses as required by the regulations. They can also take measures such as Customer Due Diligence, Know Your Customer, AML Transaction Monitoring Software, Transaction Screening Software to minimize risks. Sanction Scanner helps businesses in South Africa with their AML compliance process. Businesses can meet AML requirements and protect themselves from fines with the Sanctions Scanner. You can Contact Us for detailed information about our AML Solutions.