An examination of anti-money laundering initiatives undertaken by six major banks in South Africa
- Authors: Ramalu, Vaneshree
- Date: 2008-10-13T07:49:24Z
- Subjects: Money laundering , Money laundering investigation (South Africa) , Financial institutions law and legislation
- Type: Mini-Dissertation
- Identifier: uj:11687 , http://hdl.handle.net/10210/1140
- Description: 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
- Full Text:
- Authors: Ramalu, Vaneshree
- Date: 2008-10-13T07:49:24Z
- Subjects: Money laundering , Money laundering investigation (South Africa) , Financial institutions law and legislation
- Type: Mini-Dissertation
- Identifier: uj:11687 , http://hdl.handle.net/10210/1140
- Description: 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
- Full Text:
The imposition of South African anti-money-laundering rules by South African banks on subsidiary banks located in foreign countries : a legal analysis
- Authors: Gani, Imtiaz
- Date: 2017
- Subjects: Money laundering , Financial institutions , Money - Law and legislation , South Africa. Financial Intelligence Centre Act, 2001 , Financial services industry - Law and legislation
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/237008 , uj:24276
- Description: LL.M. (Banking and Stock Exchange Law) , Abstract: Money laundering and terrorist financing is a global issue. The advent of new technologies such as the internet and the impact of globalisation have forced businesses including banks to re-evaluate their business models. One of the key strategies currently being employed by South African banks is diversification of business interests through the establishment of subsidiary banks throughout the African continent. It is precisely this strategic shift which has exposed weaknesses in the management of money laundering risks as the South African banks are expected to ensure that the home country anti-money laundering standards are imposed on the subsidiary banks. The South African anti-money laundering regime is considered to be strong within the global context. However, the current Financial Intelligence Centre Act was not developed, and does not cater, for the position where home country anti-money laundering standards are to be imposed on subsidiaries. Even if the Act did cater for this position there would need to be intergovernmental agreements in place to give effect to the South African provisions on the subsidiary banks. Additional legislation such as the Banks Act provides for oversight and attempts to ensure that the standards are met to a degree. However, the Banks Act is applicable to the South African banks, and not to the subsidiaries due to sovereignty of state. It does to a degree require agreement between the various regulators of the countries involved. The countries involved in these cross-border acquisitions are often at different phases of their social, political and economic development and may not have the same resources that South Africa has at its disposal. What occurs when there is a conflict between the legislation of the subsidiary and the home country or if it is simply impractical to impose the standards of the home country to the subsidiary? The risk to South African banks and the South African economy are great as apart from a fine from the South African regulator, there could be a perception that the South African banks’ anti-money laundering framework is not as strong as perceived. The South African banking sector is viewed as a first-world sector. A perception that the banking sector has been weakened through cross-border subsidiary bank acquisitions could lead to a loss of international investments, international business or could even be a determining factor in a ratings downgrade to the South African economy. The dissertation was compiled reviewing all applicable legislation of South Africa as well as that countries where banks were acquired as subsidiaries, the letters of approval from the South African Reserve bank together with conditions and duties imposed on the approval, as...
- Full Text:
- Authors: Gani, Imtiaz
- Date: 2017
- Subjects: Money laundering , Financial institutions , Money - Law and legislation , South Africa. Financial Intelligence Centre Act, 2001 , Financial services industry - Law and legislation
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/237008 , uj:24276
- Description: LL.M. (Banking and Stock Exchange Law) , Abstract: Money laundering and terrorist financing is a global issue. The advent of new technologies such as the internet and the impact of globalisation have forced businesses including banks to re-evaluate their business models. One of the key strategies currently being employed by South African banks is diversification of business interests through the establishment of subsidiary banks throughout the African continent. It is precisely this strategic shift which has exposed weaknesses in the management of money laundering risks as the South African banks are expected to ensure that the home country anti-money laundering standards are imposed on the subsidiary banks. The South African anti-money laundering regime is considered to be strong within the global context. However, the current Financial Intelligence Centre Act was not developed, and does not cater, for the position where home country anti-money laundering standards are to be imposed on subsidiaries. Even if the Act did cater for this position there would need to be intergovernmental agreements in place to give effect to the South African provisions on the subsidiary banks. Additional legislation such as the Banks Act provides for oversight and attempts to ensure that the standards are met to a degree. However, the Banks Act is applicable to the South African banks, and not to the subsidiaries due to sovereignty of state. It does to a degree require agreement between the various regulators of the countries involved. The countries involved in these cross-border acquisitions are often at different phases of their social, political and economic development and may not have the same resources that South Africa has at its disposal. What occurs when there is a conflict between the legislation of the subsidiary and the home country or if it is simply impractical to impose the standards of the home country to the subsidiary? The risk to South African banks and the South African economy are great as apart from a fine from the South African regulator, there could be a perception that the South African banks’ anti-money laundering framework is not as strong as perceived. The South African banking sector is viewed as a first-world sector. A perception that the banking sector has been weakened through cross-border subsidiary bank acquisitions could lead to a loss of international investments, international business or could even be a determining factor in a ratings downgrade to the South African economy. The dissertation was compiled reviewing all applicable legislation of South Africa as well as that countries where banks were acquired as subsidiaries, the letters of approval from the South African Reserve bank together with conditions and duties imposed on the approval, as...
- Full Text:
- «
- ‹
- 1
- ›
- »