Cape Town – The Financial Intelligence Centre (FIC) is to focus aggressively on estate agents and the gambling sector to ensure compliance with anti-money laundering and other legislation under the Financial Intelligence Centre Act.

This emerged yesterday during a briefing session with journalists prior to the budget vote speech of the Minister of Finance in the National Assembly.

Virtually all the representatives of the key organs reporting to the Ministry of Finance updated the media on the work of their organisations, including the Financial Intelligence Centre director Murray Michell, South African Revenue Services Commissioner Pravin Gordhan, Public Investment Corporation chief executive Brian Molefe and Statistician-General Pali Lehohla.

Having built the required infrastructure over the past three years, the FIC is going forward with its operating model with “an aggressive focus to ensure implementation” of financial intelligence measures aimed at curtailing the financing of terrorism and money-laundering activities, said Mr Michell.

With the compliance of South Africa's banking institutions already largely secured in the fight against the money laundering of criminal proceeds and the sponsoring of terrorism, the FIC – which works with the police and the Scorpions in probing the financial dealings of criminal and their networks – is going to focus on casinos and gambling as well as estate agents as expands its operations, said Mr Michell.

“It's the old follow the money story,” said Minister of Finance Trevor Manuel as he expanded on the international aspects of South Africa's financial intelligence structure including the presidency of the international Financial Action Task Force (FATF), which works to ensure broader international compliance with anti-money laundering legislation and safeguards against the sponsoring of terrorism.

Having led the FATF for a year, former Education minister Professor Kader Asmal relinquishes the presidency next month after having provided the northern-dominated body with developing-country perspectives, such as an examination of the devastating effects of money-laundering linked to corruption, as well as a renewed appreciation of the importance of human rights.

Mr Michell said that this extensive interaction on an international level has enhanced the capacity to examine the movement of funds between international financial systems.

In South Africa, the FIC has received a total of 19 793 reports of suspicious transactions over the past financial year, bringing the total since its inception to 44 021.

This is a result of the enhanced “know your customer” obligations under which banks and other financial institutions in South Africa have been learning to operate.

These Suspicious Transaction Reports (STRs) are analysed and, where appropriate, are referred to law enforcement authorities for investigation.

While only a small percentage of these STRs result in prosecution – the Scorpions have successfully prosecuted 39 cases of money laundering - a major benefit, said Mr Michell, of these investigations is the subsequent identification of the links that emerge.

This enhances the understanding of the networks involving suspected criminal individuals, organisations and companies, ultimately leading to greater intelligence capacity.

While South Africa's estate agents and casinos are next in line, the finances flowing through South Africa's legal firms – handled by lawyers, advocates and attorneys - are also likely to come under greater scrutiny in the future, according to a briefing given by the FIC to parliament last year.

But compliance with the Financial Intelligence Centre Act is not simply to do with anti-money laundering measures, according to the briefing provided by the Treasury yesterday - “it also relates equally to the good governance of our corporates and to tax morality”.

A key intention of the FIC, said Mr Michell, is increasing good corporate governance in the country. - BuaNews