Abstract
MBA
Historically, anti-money laundering (AML) did not represent a high priority for
governments or the banking industry. In recent years, however, due to growing
intolerance towards drug traffickers, organized criminal syndicates and terrorism, a
number of AML initiatives have been evidenced, at both a governmental and
institutional level.
Banks play a pivotal role for criminal organizations in the placement stage of money
laundering. Banks act as gatekeepers for the legitimate financial system and it is only
through their vigilance that the system can be protected from providing organized
criminals or terrorists with a mechanism for concealing the proceeds of illicit and
corrupt activity (KPMG, 2004:2). As such it is important to examine the crucial role that
banks play in South Africa in the prevention, detection, and reporting of money
laundering.
A literature review was conducted to better understand a number of fundamental AML
concepts such as placement, smurfing, global financial system, as well as the nature
and meaning of the money laundering cycle. The literature review also provided a
global and national outlook on money laundering which included a review of the
international and South African legislative and policy framework on money laundering.
The empirical study made use of a qualitative, descriptive design, using data gathered
from surveys. An electronic survey was sent to the group money laundering control
officer (MLCO) of each of the identified banks. A response rate of 100% was achieved.
Professor Anton Muller
Dr. Maria Dos Santos