Durban - More than R1 trillion has passed through the country’s points of entry illegally from 2004 to 2013, ranking South Africa as one of the top 10 countries for illicit financial movements.
This was according to a recent report by Global Financial Integrity (GFI). As a result, agencies such as the SA Revenue Service (Sars) and the State Security Agency (SSA) have set up special units to monitor illicit financial movements.
Earlier this week, officials at King Shaka International Airport caught a man trying to smuggle R3.9 million from Durban to Dubai. He was apprehended during a stop and check operation.
A transaction is illicit when the funds are illegally earned, transferred or utilised. The most common methods include trade mispricing, bulk cash movements, hawala transactions (through agents and money movers) and smuggling.
Sars spokesman Sandile Memela said their job was to intercept, search and hand over to the police people who were illegally moving funds. “In the case of money, it will ultimately be given to the South African Reserve Bank to decide what they will do with it.”
Brian Dube, the SSA spokesman, said the organisation had always been part of government initiatives to minimise illicit financial flows.
In the organisation’s 2016 budget vote policy statement, State Security Minister David Mahlobo said illicit financial flows posed a global and national security threat.
“South Africa is estimated to be losing over R80Âbillion per annum through illicit financial outflows.
“We are continuously strengthening our partnership with Sars to fight illicit economic activities. It is only by combining our forces that we can dismantle criminal networks which need financial resources to expand,” he said.
Sunday Tribune