As part of South Africa’s ongoing measures to fully implement the recommendations of the Financial Action Task Force (FATF), the Department of Social Development is hosting a multi-stakeholder engagement in Kempton Park.
“The objective of the multi-stakeholder engagement is to enhance government, NPOs [non-profit organisations] and key partners’ understanding and requirements of the FATF standards to combat money laundering and terror financing and the implementation of effective national measures to mitigate the risks.
“The fight against money laundering and terrorist financing requires a collective national effort and collaboration among key stakeholders. As the registrar and custodian of the NPO Act (Act No. 71 of 1997, as amended through the General Laws Amendment Act No. 22 of 2022), one of Social Development’s strategic goals is the promotion of strategic partnerships with NPOs to deliver services to communities,” the department said of the three-day engagement that begins today.
The FATF is the international standard-setting body that oversees global compliance with anti-money laundering rules.
With South Africa due to report back to FATF on the remaining deficiencies in its fifth-round mutual evaluation in June this year, the engagement will bring together government, NPOS, development agencies, donors, private sector, law enforcement agencies and financial institutions.
Stakeholders will focus on Recommendation 8 of the FATF, which aims to protect NPOs from potential terrorist financing and money laundering abuse through effective implementation of risk-based measures.
The formal programme at the three-day engagement will feature presentations, case studies and emerging best practices by experts from key financial institutions and regulators, including the Financial Intelligence Centre (FIC), South African Revenue Service (SARS), Chartered Institute for Business Accountants (CIBA, National Lotteries Commission and the Companies and Intellectual Property Commission (CIPC).
These will highlight trends and overview of national measures to combat money laundering and terror financing, as well as the important role of NPOs in combating money laundering and terror financing in South Africa.
The multi-stakeholder engagement builds on measures already underway as South Africa works to finalise outstanding action items from FATF’s recommendations.
South Africa is now deemed to have addressed or largely addressed 20 of the 22 action items in its Action Plan, leaving two items to be addressed in the next reporting period that runs from March 2025 to June 2025. This would enable South Africa to be considered for delisting from the FATF grey list in October 2025.
This as the FATF grey listed South Africa at its February 2023 plenary meeting held in Paris. It developed an Action Plan with 22 Action items linked to the eight strategic deficiencies identified in the country’s anti-money laundering and combating of financial terrorism regime.
Deregistration
This week’s gathering comes at the department has embarked on deregistration of non-compliant NPOs, with 203 279 organisations at the risk of deregistration for failure to comply with the requirements to submit annual reports as per the provisions of section 18 (1) of the Non-Profit Organisations Act (Act No. 71 of 1997, as amended through the General Laws Amendment Act 22 of 2022).
READ | Social Development issues notices of non-compliance to NPOs
The engagement session which is being held at the Premier Hotel OR Tambo will culminate in the adoption of a declaration on combating money laundering and terror financing in South Africa. – SAnews.gov.za
