The General Laws (AML/CFT) Amendment Bill, 2024, aims to strengthen South Africa’s legal framework against money laundering and terrorism financing by amending laws like the Nonprofit Organisations Act, FIC Act, Companies Act, and Financial Sector Regulation Act. It introduces stricter penalties, enhances customer due diligence, and addresses regulatory gaps in financial services. While these changes aim to improve compliance with international standards and might combat financial crimes effectively, it will inevitably increase the administrative burden and the regulation of South African companies.
The General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, 2024, aims to strengthen South Africa’s legal framework against money laundering and terrorism financing.
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This campaign closed on 6 February 2025
The bill proposes amendments to several laws, including the Nonprofit Organisations Act, Financial Intelligence Centre Act (FIC Act), Companies Act, and Financial Sector Regulation Act.
Key changes include specifying maximum penalties for offences under the Nonprofit Organisations Act to enhance enforcement. The FIC Act amendments address deficiencies related to targeted financial sanctions, customer due diligence, and the risks associated with new technologies. The Companies Act amendments empower the Commission to deregister companies failing to submit securities registers and impose administrative penalties for non-compliance. The Financial Sector Regulation Act amendments aim to close gaps in customer protection, licensing, and regulation of financial products and services, including new services. While necessary in an online marketplace, this Bill may introduce risks such as increased compliance costs, privacy concerns, and overregulation, potentially deterring investment and stifling innovation. Enhanced enforcement powers and ambiguous definitions could lead to misuse, unfair targeting, and inconsistent application. Striking a balance between combating financial crime and protecting businesses and consumers is crucial.
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