The casino industry in South Africa is described as being a mature industry and credited with having one of the world’s most ethical and socially responsible gambling regimes. Now it is to come under increased scrutiny by the Financial Intelligence Centre (FIC) to ensure compliance with anti-money laundering legislation. Over three years the FIC has built an infrastructure to enable ‘an aggressive focus to ensure implementation’ by casinos and estate agents. Finances flowing through South Africa’s legal firms will be next in line for investigation.

In a speech last month in Nevada at the 13th International Conference on Gambling and Risk Taking, the Chief Executive of the South African Casino Association, Derek Auret, said: “Over this first decade of SA's new gambling dispensation, we have been fortunate to have escaped the adversarial relationship between regulators and industry which exists in certain other jurisdictions. This is not a mere accident of history, but the outcome of a constructive engagement between government and industry which recognizes the salient importance of our industry's proven ability to contribute positively to socioeconomic development through new investment, employment creation, and the provision of new non-gambling tourism infrastructure.”

South Africa has held the presidency of the international Financial Action Task Force (FATF) for the last year, working to ensure broader international compliance with anti money laundering legislation. Banks and financial institutions in the country have already been targeted and are under ‘know your customer’ obligations to file Suspicious Transaction Reports. According to BuaNews, compiled by the Government Communication and Information System, the Financial Intelligence Centre Act is not just to do with measures against money laundering but ‘relates equally to the good governance of our corporates and to tax morality.’

As Derek Auret commented last month, “We have succeeded in forging an alliance that imposes on government and the industry alike the need to manage and advance a relationship in which we work constructively and transparently to deal with issues of mutual concern and interest.” It is the present climate of anti-terrorism measures rather than possible criminal activity that puts money laundering alongside problem gambling as an issue for government and industry concern. (E-06.07.06)

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