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Specialist Fields

ANTI-FINANCIAL CRIME LAW

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We assist businesses in all areas of Anti-Financial Crime

Anti-Financial Crime (AFC) laws include laws combating bribery and corruption in the public and private sectors, money laundering and terrorist financing.

Our experienced team is available to prepare, review and/or implement anti-financial crime policies and procedures in compliance with local and most international laws, perform or provide guidance for due diligence inquiries on third parties, including customers and suppliers, and assist in training staff to work towards achieving accepted business governance ideals.

A mere suspicion of bribery or corruption could see an organisation’s contracts terminated and potential new business lost. A comprehensive compliance programme will ensure that Anti-Bribery & Corruption Law risks are at the forefront of your employees’ engagements.

- Louella Tindale, Caveat Panel Member

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Anti-Financial Crime

Most organisations have policies that dictate that they cannot do business with anyone even merely implicated in a financial crime. It is fast becoming common practice to run background checks including media screenings on third parties and their directors to ensure clean records. A simple allegation of bribery could see your organisation being discounted at RFP stage. 

Recent amendment laws including the General Laws (Anti-money Laundering and Combating Terrorism Financing) Amendment Act, 2022, Protection of Constitutional Democracy Against Terrorism And Related Activities Amendment Act,  2022 as well as amendments to the Financial Intelligence Centre Act, have introduced certain requirements on “Accountable Institutions” to implement compliance procedures. The scope of what constitutes Accountable Institutions has been extended to include not only your usual financial services organisations but also organisations selling goods singularly valued at above R100 000 and crypto asset providers.

From a global perspective, certain foreign anti-financial laws, including those of the US and UK, have extraterritorial scope. What this effectively means is that global organisations with operations in the US or UK could be prosecuted under those laws for bribery and corruption offences committed by another group company located in, for example,  South Africa.

Comprehensive and workable anti-financial crime policies and procedures are therefore no longer a nice to have, but a must. 

Caveat can assist in designing anti-financial crime compliance procedures and policies to suit your specific business, and that will align with both local and most international laws. We will guide you through the development of due diligence procedures that should be conducted on third parties that you engage with and will assist in training your staff to work towards both demonstrating and achieving compliance.

FAQs

Frequently asked questions on Administrative Law

  • The key laws making up the financial crime legal framework in South Africa include:

    • Prevention and Combating of Corrupt Activities Act, 2004;
    • Financial Intelligence Centre Act, 2001;
    • Prevention of Organised Crime Act, 1998;
    • Protected Disclosures Act, 2000; and
    • Protection of Constitutional Democracy Against Terrorist and Related Activities Act, 2004.

For Accountable Institutions under the Financial Intelligence Centre Act it is a requirement.

  • The organisation lacks skill or experience to perform the services they are tendering for;
  • If an organisation starts requesting payment on an urgent basis, or upfront payment;
  • Generally secretive behaviour such as a person wanting to keep his/her involvement a secret or trying to share obviously confidential information; or
  • Requests for payments into multiple bank accounts or offshore bank accounts.

Our law does not specifically define a bribe but it can be more than an exchange of cash and can include a gift or a kick-back. A bribe effectively secures an improper advantage or rewards improper conduct.

Fines and imprisonment are possible consequences. The maximum sentence is life imprisonment.

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