Uniting Against Financial Crime in South Africa: A Call for Collaborative Action

Allowing financial criminals to operate in our economy will have severe repercussions. From corroding business integrity and investor confidence to fuelling broader corruption, violence, and lawlessness.

Combating the scourge of financial crime, organised criminality, and corruption in South Africa requires an all-hands-on-deck approach from both the public and private sectors. This was the resounding message from Advocate Xolisile Khanyile at the 2024 Fighting Financial Crime Conference hosted by DocFox earlier this year.

“Everyone has a role to play in this fight,” urged Khanyile, the chair of The Coalition’s Africa chapter, and former Director of South Africa’s Financial Intelligence Centre. “The Financial Action Task Force’s (FATF's) 2019 review highlighted glaring deficiencies in our counter-terrorist financing efforts and risk-based supervision of key sectors. While we have sound legislation, lacklustre implementation is crippling its effectiveness,” she said. 

Khanyile was unsparing in her criticism of Designated Non-Financial Businesses and Professions (DNFBPs) which include legal practitioners, property practitioners, and High-Value Goods Dealers. The FATF found that DNFBPs were the worst performers in upholding anti-money laundering and counter-terrorist financing obligations. “We have seen criminals going to lawyers and saying ‘Buy a house for me’. These are the things we need to stop. Regarding preventative measures, few are doing their job.”

She cited numerous red flags these gatekeepers need to vigilantly monitor: clients paying fees in difficult-to-trace cash, clients claiming to represent third parties, dealings in high-risk foreign jurisdictions or cryptocurrencies, so-called “pig butchering” investment scams, and more. “You must know your customers, their sources of funds, and any risks they pose. Complacency here is unacceptable.”

The FATF similarly expects robust, risk-based supervision of DNFBPs and other vulnerable sectors by regulators like the Financial Intelligence Centre (FIC). This includes sectors such as virtual assets service providers. They want to see regulators and supervisory bodies properly resourced with expertise, powers, and tools to effectively supervise Accountable Institutions, Khanyile said. “Criminals are ahead of us, and we need to move faster. We need to work as a collective and unite against financial crime. Working in silos enables them to identify and exploit the weakest links.”

The rapid advancements in technology and the increase in organised crime have resulted in the emergence of various innovative methods to deceive innocent individuals, businesses, and governmental entities. With the development of Artificial Intelligence and cryptocurrencies, the situation is only going to get worse without urgent action. 

This urgency to disrupt financial crime networks is where innovative regulatory technology platforms like DocFox can be force multipliers. Our end-to-end FICA compliance solution equips Accountable Institutions with automated compliance controls and monitoring capabilities far exceeding manual methods.

Rather than complicated manual checks that can easily become outdated, DocFox integrates the latest verification and authentication technologies, and watchlist screening into a seamless digital experience. Our platform protects companies across industries from being unknowingly exploited by criminals.

The consequences of letting financial criminals infiltrate our economy are dire—from corroding business integrity and investor confidence to fuelling broader corruption, violence, and lawlessness. Every company has not just a legal but moral obligation to fight aboard this offensive. DocFox gives you a powerful weapon to join the battle.

Watch the video below for highlights from our Fighting Financial Crime Conference.  
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