Combating financial crime, organized criminality, and corruption in South Africa requires a unified effort from both the public and private sectors. This was the clear message from Advocate Xolisile Khanyile at the recent Fighting Financial Crime conference hosted by compliance leader DocFox in Johannesburg.
“Everyone has a role to play in this fight,” urged Khanyile, the chair of The Coalition’s Africa chapter, former chair of the Egmont Group and former Director of South Africa’s Financial Intelligence Centre (FIC). “The Financial Action Task Force’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 says
Corruption
Khanyile did not hold back in her criticism of Designated Non-Financial Businesses and Professions (DNFBPs), such as legal practitioners, real estate firms, and high-value goods dealers. The FATF found that DNFBPs were the weakest in meeting anti-money laundering and counter-terrorist financing obligations. “We have seen criminals going to lawyers and asking them to ‘buy a house for me.’ These are the issues we need to address. Regarding preventative measures, few are fulfilling their responsibilities.”
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.”
Capacity for oversight
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 asset service providers. They want to see regulators and supervisory bodies properly resourced with expertise, powers, and tools to carry out this crucial oversight, 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.”
This urgency to disrupt financial crime networks is where innovative regtech platforms like DocFox can be force multipliers. The company’s seamless web application equips DNFBPs and other accountable institutions with automated compliance controls and monitoring capabilities far exceeding manual methods.
Director of Risk & Compliance at DocFox, Hawken McEwan, says “Our software provides an intuitive yet incredibly robust solution for meeting all FICA’s ‘know your customer’ requirements head-on.” “Businesses can effortlessly validate customer identities, analyse for high-risk factors, maintain comprehensive audit trails, and instantly surface any potential politically exposed or sanctions related clients —all through intelligent automation.”
Instead of relying on cumbersome manual checks that can quickly become outdated, DocFox integrates the latest verification and authentication technologies with real-time watchlist screening, providing a seamless digital experience. The platform safeguards companies across industries from inadvertently being exploited by criminals.
McEwan acknowledges “For too long, many businesses have viewed reporting suspicious activities as a futile effort when prosecutions seem lacking. But that apathy just perpetuates the impunity. If we want actual change, it requires collective commitment from both public and private sectors doing their parts.”
Cutting edge technology
By equipping Accountable Institutions with DocFox’s advanced compliance tools and services, they gain crucial capabilities as front-line partners in the fight against financial crime. With the support of cutting-edge technology, they can effectively implement rigorous FICA controls without disrupting operations. Combined with increased scrutiny and enforcement from regulators, this unified public-private effort can make a significant impact.
McEwan warns, “The consequences of letting financial criminals metastasise throughout 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. With DocFox, we’re giving them a powerful new weapon to join the battle.”
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