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South Africa Urged to Combat Money Laundering by Law

JOHANNESBURG, Oct 20, (XINHUA) — The Afrinkaanse Handelsinstituut (AHI), an influential economic organization here, Wednesday urged South African lawmakers to combat money laundering by legislation.

A deficiency still exists in South Africa’s effective financial regulatory framework, namely the fact that legislation to combat money laundering has not yet been passed, the AHI said in a statement.

“Over the past few years money laundering has dramatically increased all over the world,” it warned.

The enormous progress that has been made in the field of electronic banking also plays into the hands of unscrupulous money launderers, the statement said.

It added that experience in other countries indicated that it was not only financial institutions that become the victims of money launderers.

Countries worldwide have adapted their financial legislation to combating the problem, according to the statement.

South Africa is, to an extent, protected against money laundering by the Prevention of Organized Crime Act.

“It is essential that the necessary legislation be put in place urgently, as experience with regard to money laundering abroad indicates that money launderers prefer countries without legislation,” the statement said.

 Source: Xinhua News Agency

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