South Africa has been named as one of the money laundering hotspots, and the authorities are endeavouring to tighten prevention measures. Established in February 2005 under the Financial Intelligence Centre Act 2001, the Financial Intelligence Centre (FIC) sets up a regulatory anti-money laundering regime intended to break the cycle used by organised crime to clean illegitimate profits. In June this year FIC announced it would be closely monitoring South Africa’s gambling sector and estate agents, considered particularly vulnerable to being abused by criminals.

FIC has now launched an awareness campaign in a bid to stop the exploitation of property and casino markets in the country by crime syndicates. Director of the organisation, Murray Mitchell, has described the level of reporting of suspicious transactions by casinos and estate agents as being ‘poor.’ Over the last two years FIC staff have been trained by UK counterparts in the practices of money laundering syndicates.

Local newspaper The Star has alleged a link between organised crime and Johannesburg casino workers, reporting that contacts are paid 10% of money exchanged for casino chips. Slot machine bill acceptors have been used for changing stained notes following bank heists. There is also evidence of money being laundered at racecourses in South Africa, winning tickets being purchased for a premium with cash. In casinos accumulated chips bought with cash have been exchanged for cheques after some play.

Casinos are probably not the main target of illicit money laundering, owing to tight controls. European drug cartels are known to use cash property purchases in South Africa and less noticeable cash transactions for vehicles. The diamond markets are also targeted for money laundering activity. In these days when terrorism is frequently mentioned in the same breath as money laundering, the FIC is trying to stay ahead of the game. (E-08.31.06)

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