The National Treasury of South Africa released the draft Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) Amendment Bill in December 2024 for public review and feedback. This important law combines five essential Acts while strengthening enforcement methods throughout different sectors. The legislation demonstrates South Africa’s increased determination to leave greylisting and meet international compliance standards.
This legislative change works toward South Africa’s readiness for their upcoming Financial Action Task Force (FATF) Mutual Evaluation Report (MER) scheduled for February 2025. In May 2025 the FATF Africa Joint Group plans to visit to evaluate progress made on previous action items.
What’s Changing: The Core Focus of the Amendment Bill
The amendment proposals cover both historical Acts and recently revised legislation such as:
- The Financial Intelligence Centre Act (FICA)
- The Companies Act
- The Financial Sector Regulation Act (FSRA)
- The Nonprofit Organisations Act (NPO Act)
The Bill remains unenforced but its draft shows substantial changes that responsible organizations in finance, legal services, real estate, and non-profits need to start planning for.
Key Regulatory Shifts to Know About
Technology-Responsive Risk Management
Institutions need to incorporate developing technologies in their risk management systems focusing on new financial products.
Enhanced Due Diligence
Mandatory verification of funding sources for high-risk clients now applies and requires periodic revalidation every three years.
Beneficial Ownership Disclosure
Entities are required to hold precise records of beneficial owners who control 25% or more of their interests, submit these records to a central public register and retain this information for a minimum of five years.
Tighter Reporting Timelines
Financial institutions need to submit Suspicious Transaction Reports to the Financial Intelligence Centre no later than 15 business days after detecting the suspicious activity. Terrorist Property Reports (TPRs) now follow updated requirements.
Stronger Penalties
Non-compliant institutions may be subjected to increased penalties that reach R10 million or 10% of their turnover. The maximum prison sentence for aiding money laundering offenses has been set at 15 years. The NPO Act permits both a R1 million fine and/or imprisonment for up to five years.
Real-Time Oversight by the FIC
The FIC has new powers to perform surprise inspections and deliver immediate compliance instructions.
Mandatory Registers & Licensing Clarity
The absence or lateness of securities or beneficial ownership registers now exposes entities to substantial fines and potential deregistration. The FSRA revisions establish specific licensing duties for emerging entities functioning within financial sectors that lack regulation or clarity.
Forward-Looking Enhancements
Digital Onboarding: The Bill promotes biometric ID verification and e-KYC tools to improve identity assurance.
Global Data Sharing: The FIC now operates alongside the Public Procurement Office and international AML organizations to advance coordinated cross-border compliance efforts.
Governance Focus: Anonymous clients face explicit definitions and are barred from participating until they complete due diligence.
What This Means for South African Businesses
As Bradley Elliot of RelyComply explains, accountability now extends beyond banks and fintech organizations. The scope of accountability now extends to cover law firms as well as estate agencies, automotive dealers, and nonprofit organizations. He emphasizes that every organization needs to adopt auditable AML/CTF systems based on risk assessment.
At Be Verified, we echo this sentiment. Upcoming changes require compliance programs to be both robust enough to meet statutory requirements and adaptable to the evolving global risk trends. Institutions require tools for real-time screening capabilities along with automated client monitoring and precise reporting workflows particularly in sectors with high-risk profiles.
Institutions should also be aware that regulators will ramp up scrutiny. Repeated non-compliance can result in deregistration or public sanctioning, especially under the Companies Act and FSRA. But it’s not all punitive—companies can appeal sanctions through the Companies Tribunal, reinforcing fair enforcement.
As the regulatory framework tightens, embracing innovation becomes a dual necessity: both for combating financial crime and meeting regulatory expectations. The use of AI-driven analytics, centralized risk dashboards, and real-time reporting will be critical for staying ahead.
A Path Toward Rebuilding International Confidence
This amendment bill is more than a legal upgrade—it’s a national step toward regaining international trust. FATF alignment is within reach, but only if institutions act swiftly, work collaboratively, and adopt a compliance-first culture.
The Be Verified team will continue to track the Bill’s progress and its broader impact on South Africa’s greylisting status throughout 2025. Stay tuned for ongoing updates, resources, and actionable insights to keep your compliance strategies ahead of the curve.
