Risks to the South African financial markets — PART 1

Henning, J.J.; Ebersohn, Gerrie

doi:10.1057/palgrave.jbr.2340119

Cited by 3 publications

(4 citation statements)

References 1 publication

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“…The layering stage is the second stage of money laundering [50]. At this stage, the money launderers separate and distance the proceeds of crime from the criminal activity and/or their illegal source [51].…”

Section: The Definition Typologies and Stages Of Money Launderingmentioning

confidence: 99%

“…This is normally achieved by making payments in expectation of refunds in the form of cheques or cash to acquire legitimate transaction records from financial institutions, thus limiting suspicions of money laundering activities from relevant authorities (Commissioner of South African Reserve Service v Absa Bank, 2003) [54]. Electronic funds transfers are also a much faster method of layering that is conducted even on a long-distance set-up producing minimum audit trail and more anonymity to disguise the proceeds of crime from their source [55]. At the layering stage, money launderers mix laundered money with legitimate money carefully to avoid creating a nexus between the laundered money and the preceding crime [56].…”

Section: The Definition Typologies and Stages Of Money Launderingmentioning

confidence: 99%

“…The money launderer creates a money web that involves several people in many jurisdictions so as to mislead the trail of the illicit transaction [52]. The money web is created to destroy the nexus between the proceeds of crime and the preceding crime [53]. This is normally achieved by making payments in expectation of refunds in the form of cheques or cash to acquire legitimate transaction records from financial institutions, thus limiting suspicions of money laundering activities from relevant authorities (Commissioner of South African Reserve Service v Absa Bank, 2003) [54].…”

Section: The Definition Typologies and Stages Of Money Launderingmentioning

confidence: 99%

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Historical aspects of customer due diligence and related anti-money laundering measures in South Africa

Chitimira

Munedzi

2023

JMLC

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Purpose This paper explores the historical aspects of customer due diligence and related anti-money laundering measures in South Africa. Customer due diligence measures are usually employed to ensure that financial institutions know their customers well by assessing them against the possible risks they might pose such as fraud, money laundering, Ponzi schemes and terrorist financing. Accordingly, customer due diligence measures enable banks and other financial institutions to assess their customers before they conclude any transactions with them. Customer due diligence measures that are utilised in South Africa include identification and verification of customer identity, keeping records of transactions concluded between customers and financial institutions, ongoing monitoring of customer account activities, reporting unusual and suspicious transactions and risk assessment programmes. The Financial Intelligence Centre Act 38 of 2001 (FICA) as amended by the Financial Intelligence Centre Amendment Act 1 of 2017 (Amendment Act) is the primary statute that provides for the adoption and use of customer due diligence measures to detect and combat money laundering in South Africa. Prior to the enactment of the FICA, several other statutes were enacted in a bid to prohibit money laundering in South Africa. Against this background, the article provides a historical overview analysis of these statutes to, inter alia, explore their adequacy and examine whether they consistently complied with the Financial Action Task Force Recommendations on the regulation of money laundering. Design/methodology/approach The paper provides an overview analysis of the historical aspects of the regulation and use of customer due diligence to combat money laundering in South Africa. In this regard, a qualitative research method as well as the doctrinal research method are used. Findings It is hoped that policymakers and other relevant persons will adopt the recommendations provided in the paper to enhance the curbing of money laundering in South Africa. Research limitations/implications The paper does not provide empirical research. Practical implications The paper is useful to all policymakers, lawyers, law students and regulatory bodies, especially, in South Africa. Social implications The paper advocates for the use of customer due diligence measures to curb money laundering in the South African financial markets and financial institutions. Originality/value The paper is original research on the South African anti-money laundering regime and the use of customer due diligence measures to curb money laundering in South Africa.

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Section: The Definition Typologies and Stages Of Money Launderingmentioning

confidence: 99%

Section: The Definition Typologies and Stages Of Money Launderingmentioning

confidence: 99%

Section: The Definition Typologies and Stages Of Money Launderingmentioning

confidence: 99%

See 1 more Smart Citation

Historical aspects of customer due diligence and related anti-money laundering measures in South Africa

Chitimira

Munedzi

2023

JMLC

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“…With the Internet in full swing, the banking sector is taking advantage of the new possibilities introduced to them. Norway is the first country in the world to offer Internet banking services (Ebersohn & Henning, 2001). After this, the rest of the world follows, making Internet banking a worldwide phenomenon.…”

Section: Literature Reviewmentioning

confidence: 99%

Chinese Customers’ Banking Habits and E-Banking Barriers

Qiu

2009

IJBM

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The purpose of this study was to investigate the Chinese customers' banking habits and the major barriers prevent them from participating in E-banking. The study was conducted in Chinatown area in New York City. There were 110 respondents completed the survey. The findings indicated that the Chinese customers did most of the banking transactions via teller stations. The Chinese customers' major concerns of online banking included security concern and the lack of bank staff support when they suffered from technical problems at home. The aging Chinese customers with low education and low income were less likely to participate in E-banking.

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Financial innovation in retail banking in South Africa

Smit¹,

Mostert²,

Mostert³

2016

COC

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Innovation in general refers to an action to do something differently. Financial innovation, which embodies the topic of this research, has therefore the creation of financial products, services and/or systems in mind in order to satisfy the needs of customers and clients and ultimately to improve the financial performance of the enterprises concerned. As the requirements of customers and clients change continuously, financial innovations are important for the survival of enterprises. Capital investments to accommodate financial innovations should be considered very carefully as they will determine the business activities of an enterprise for many years. The objective of this research focuses on the improvement of financial decision-making by executive managers in retail banking when they are engaging in financial innovations. A literature study represented the start of this research to provide a proper basis for compiling the empirical study’s questionnaire. The empirical study consisted of an opinion survey where the three pillars of financial innovation were addressed, viz.: products and services innovation, organisational innovation and distribution channel innovation. The empirical study indicated amongst others the importance of these three pillars of financial innovations as perceived by eight of the largest banks in South Africa. Furthermore, the obstacles to financial innovations also received the necessary attention. The empirical results of this research should be valuable to countries which are classified as developing economies with emerging market economies, as South Africa is a member of this group

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Risks to the South African financial markets — PART 1

Cited by 3 publications

References 1 publication

Historical aspects of customer due diligence and related anti-money laundering measures in South Africa

Historical aspects of customer due diligence and related anti-money laundering measures in South Africa

Chinese Customers’ Banking Habits and E-Banking Barriers

Financial innovation in retail banking in South Africa

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