The South African anti-money laundering regulatory framework relevant to politically exposed persons

• Main Author: Ahlers, Christelle
• Other Authors: Du Plessis, Danie E.
• Language: en
• Published: University of Pretoria 2013
• Subjects: Money laundering; Financial Intelligence Centre Act (FICA); South African anti-money laundering; UCTD; Financial Action Task Force (FATF); Risk based approach; Politically exposed person (PEP); European Union (EU); Customer due diligence; Corruption; Anti-money laundering
• Online Access: http://hdl.handle.net/2263/31985; Ahlers, C. 2013, 'The South African anti-money laundering regulatory framework relevant to politically exposed persons', MPhil dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/31752>

Politically exposed persons have become a specific risk factor in money laundering. The Financial Action Task Force has formulated clear and specific requirements for dealing with these individuals. Internationally, various jurisdictions such as the United Kingdom and the European Union have adopted effective legislation encompassing the 2003 Financial Action Task Force Recommendations. In South Africa the requirement to apply appropriate, risk based procedures to politically exposed persons has been limited to banks. The aim of this research study was to identify whether the South African anti-money laundering regulatory framework, adequately addresses managing the risks of politically exposed persons. The regulatory frameworks of the United Kingdom and the European Union, as well as the requirements of the Financial Action Task Force, were used to determine whether best practice is followed in South Africa with regard to politically exposed persons. The process of how money is laundered has been examined as well as the methods that corrupt politically exposed persons use in order to launder money. The study has shown that politically exposed persons are not regulated in South Africa in accordance with the Financial Action Task Force Recommendations issued in 2003, while the South African Anti-Money Laundering Regulatory Framework does not adequately address the risk posed by corrupt, politically exposed persons. Both international best practice and the recommendations of the World Bank were considered in terms of the way in which to address the risks posed by these persons effectively. === Dissertation (MPhil)--University of Pretoria, 2013. === Auditing === unrestricted