ANTI-FINANCIAL CRIME LAW

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.