To assist the government in combating corruption and prosecuting complicated financial crimes, South Africa’s Financial Intelligence Centre (FIC) formed a forensic unit as part of an effort to get the country removed from a worldwide watchdog’s “dirty money watchlist.”
The unit, which became operational on April 1, will supplement the FIC’s current structures, according to an interview with the center’s executive manager, Christopher Malan, conducted on Friday. According to him, it should hasten asset forfeiture and legal actions.
The FIC is tasked with assisting in the identification of the proceeds of crime, as well as fighting against money laundering, terrorism financing, and the spread of weapons of mass destruction.
In February, the Financial Action Task Force, a Paris-based organisation, added South Africa to its ‘grey list’ due to the country’s ineffectiveness in combating terrorist financing and illicit money flows.
The decision came after a period of widespread government corruption under previous President Jacob Zuma, often known as state capture, which according to Ramaphosa’s successor, cost the country at least R500 billion.
Long-term inclusion on the list might harm investor confidence in South Africa and result in capital and currency outflows.
The National Treasury has allocated R265.3 million to the FIC, which the agency will use to hire staff for the forensic unit and its expanded supervisory role, Malan said. businesstech