Sharp rise in suspect money deals

The Financial Intelligence Centre (FIC) told Parliament that the number of suspicious financial transactions in SA in 2012-13 skyrocketed by 176% compared to the previous financial year, notes a Business Day report. FIC director, Murray Michell, in his annual report, said the 147 744 suspicious transactions referred by the FIC to law enforcement agencies represented a cash value of R78bn. This is significantly up from the R6.3bn referred in 2011-12. ‘Illicit financial flows have become a topic of growing international concern. According to the report, Michell said indicators of money laundering included purchase of ‘high-end’ goods and properties through attorneys; the abuse of businesses and entities such as using a shell company for receipt and distribution of funds, and dormant accounts that suddenly receive large deposits and rapid withdrawals.

There is no doubt that stricter application of the current legislation will follow, including more careful monitoring of accountable institutions.

If your FSP is authorised to render financial services on any financial product other than short-term products and/or health benefits, you are required to register as an accountable institution.

If you have not yet done so, please click on this link to access the registration page.

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