Approved but delayed

The South African cabinet has approved an anti-laundering Financial Intelligence Centre Bill but it is unlikely to be passed this year due to pressure on parliamentary time. The bill imposes know your customer requirements and suspicious transaction reporting to a Financial Intelligence Centre on a whole host of financial intermediaries including banks trust companies, estate agents, insurers, unit trust companies, foreign exchange dealers, sellers of travellers cheques and money orders, accountants, lawyers, stockbrokers, investment advisers, casinos and bookmakers. This list may be amended by the Finance Minister Trevor Manuel. The reporting rules will also apply to professional associations and government agencies. Bodies subject to the new requirements will have to keep records of all customers and transactions for five years after an account is closed. They will also be expected to train staff to detect suspicious transactions. Under the new legislation organisations will also have to identify all existing account holders. A new money laundering advisory council will be set up to assist the finance minister in formulating policy in the field and to provide a forum for discussion. It will not have any regulatory authority.