The Congress of South African Trade Unions (COSATU) presented its submission in support of the General Laws (Anti-Money Laundering and Combatting Terrorism Financing) Bill to Parliament’s Standing Committee on Finance. The Federation urges Parliament to expedite passage of this critical Bill. The Bill builds upon the 2023 legislative amendments dealing with the dangers of the proceeds of crime, corruption, state capture and terrorism being laundered through South African and international financial institutions.
COSATU appreciates the important strides made by various departments and institutions within the African National Congress led 6th and 7th administrations to address gaps in our legislative framework as well as their implementation by various state institutions and compliance by the financial sector.
Whilst welcoming South Africa’s exit from grey listing in 2025 and the tremendous amount of work by government it took to achieve with the support of financial institutions, we cannot afford to become complacent when dealing with often highly sophisticated international and domestic criminal syndicates. The Bill will play an important role in this regard and boost efforts to ensure South Africa remains compliant with the United Nations’s Financial Action Task Force’s requirements, more so in the run up to the next review in October 2027.
Important amendments in the Bill that will boost the capacity of the state in the war against state capture and crime, include tightening provisions requiring financial institutions to monitor and report suspicious transactions, enabling the Financial Intelligence Centre (FIC) to undertake lifestyle audits of persons of interest and to share these and other findings with the relevant law enforcement institutions.
If this progressive Bill is to achieve its important objectives, government needs to ensure the FIC, South African Police Service, National Prosecuting Authority and other law enforcement institutions have the necessary resources to win this war. It is critical that the Medium-Term Budget Policy Statement in October signals a decisive shift in this regard.
The war against state capture, crime, money laundering, terrorism financing and syndicates threatens the capacity of the state to enforce the rule of law, bleeds scarce resources needed to fund public and municipal services, deters badly needed domestic and international investment required to stimulate inclusive economic growth, and threatens the jobs and hopes for a better future for millions of working-class South Africans.Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za