By Thapelo Molefe
In a bid to strengthen its Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) system, the National Treasury has published the draft General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill for public comment.
The move aims to address the remaining deficiencies identified by the Financial Action Task Force (FATF) in 2021 and to better prepare South Africa for the next mutual evaluation to be conducted in 2026/27.
The draft law proposes amendments to four key pieces of legislation, including the Financial Intelligence Centre Act, the Financial Sector Regulation Act, the Companies Act and the Non-profit Organisations Act.
“The publication of the draft Amendment Bill demonstrates South Africa’s commitment to strengthening its AML/CFT system,” Treasury said in a statement on Thursday.
The proposed amendments focus on addressing minor deficiencies relating to targeted financial sanctions, new technologies, customer due diligence measures and beneficial ownership obligations.
The Treasury, in collaboration with the departments of Social Development and Trade, Industry and Competition, will engage with stakeholders through public workshops to discuss written comments on the draft Amendment Bill.
An updated draft will then be presented to Cabinet for consideration and eventually tabled in Parliament.
The public has been invited to submit their written comments on the draft Bill by 6 February 2025.
The move is seen as a positive step towards strengthening the country’s financial systems and reducing the risk of money laundering and terrorism financing.
The FATF had previously identified deficiencies in South Africa’s AML/CFT system, which led to the country being placed on the FATF’s grey list.
However, with the proposed amendments, South Africa is addressing these deficiencies and improving its compliance with international AML/CFT standards.
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