Weekly NewsWatch
A weekly round-up of industry news surrounding financial crime, money laundering and terrorist financing from South Africa and beyond.
What Financial Action Task Force greylisting would mean for SA
The Financial Action Task Force (FATF) Mutual Evaluation Report calls on banks to further strengthen and improve their crime prevention and risk mitigation measures.
It’s entrapment, says Presidency about Ramaphosa farm robbery. Then it clammed up
Hundreds of Daily Maverick readers have questions for President Cyril Ramaphosa about the 2020 burglary at his Phala Phala farm. We try to answer some of them.
Former Total employees accused of defrauding company of R2m get bail
Four former employees of Total Energies South Africa have been released on R1 000 bail after they were arrested on suspicion of defrauding the company’s rewards programme of R2 million.
Peter Schiff Has a Deal With Puerto Rico to Liquidate His Euro Pacific Bank
Two months after regulators suspended the boutique online bank, the outspoken libertarian economist said he had agreed to return $66.7 million in deposits.
African unicorn Flutterwave battles fires on multiple fronts
The business took a direct hit last month, when the Kenyan high court froze Flutterwave’s bank accounts under anti-money laundering rules and the central bank said it isn’t licensed to operate payments services in the country.
How it happened that the Guptas may actually end up in a South African court
It was by implementing the recommendations of FATF that the UAE has developed the legal framework that allowed them to arrest and possibly extradite the Guptas.
‘Dating scam’ suspects wanted for extradition to US appeal bail refusal in High Court
The alleged internet romance scammers, who are wanted for extradition to the US, have launched an appeal for bail in the Western Cape High Court.
Assets worth R13 million belonging to Richard Mdluli and co-accused frozen
The National Prosecuting Authority’s Asset Forfeiture Unit has successfully frozen assets to the tune of R13 million belonging to former Crime Intelligence boss Richard Mdluli and his co-accused in the “slush fund” corruption case.
Banned Russian oligarchs exploited UK secrecy loophole
Sanctioned Russian oligarchs from Vladimir Putin’s inner circle exploited a UK secrecy loophole left open by the government.
Israel limits cash payments to fight financial crimes, tax evasion
Israel limits cash payments in one business transaction to 6,000 new shekels ($1,785), as the country works to combat organised crime, money laundering and tax evasion.
Lottery contractor injected millions of rands into ex-board chair’s mansion
A private company that has been paid millions for providing services to the National Lotteries Commission (NLC), contributed R2-million towards the luxury mansion of Alfred Nevahutanda, the NLC’s former board chairperson.
Massive car licence scam in South Africa
The Road Traffic Management Corporation’s (RTMC) National Traffic Anti-Corruption Unit and special crime unit the Hawks, have announced the bust of a major vehicle licence scam in South Africa.
Ex Gauteng HoD Margaret-Ann Diedricks arrested over R7-million ‘kickbacks’ from Free State asbestos tender
Ace Magashule and others already charged over the Free State’s R255-million asbestos audit contract are getting a new co-accused. The former head of Gauteng’s human settlements department, who later became the DG for the national department of water and sanitation, has been nabbed over alleged kickbacks relating to the 2014 Free State deal.
UAE to introduce new gold import rules with up to $1.36m in fines for businesses in breach
The UAE will introduce a new set of regulations on gold imports in line with international rules that seek to thwart money laundering and the financing of terrorism and illegal organisations.
UK Regulator Issues Record Fines as Financial Crime Surges
The Financial Conduct Authority (FCA) said it also began prosecutions last year alleging insider dealing, investment fraud and money laundering. One landmark case of money laundering during the period resulted in the first ever prosecution of a UK bank, after NatWest was fined over £264m ($316m).
Financial Action Task Force: SA must Deal With Financial Crimes By October
The National Treasury has again warned that South Africa runs a high risk of being greylisted by the international Financial Action Task Force.
Properties valued at R20m to be seized in Nelson Mandela Bay metro corruption case
The National Prosecuting Authority’s (NPA) Asset Forfeiture Unit (AFU) has been granted an order against properties valued at R20 million belonging to corruption accused in the Nelson Mandela Bay metro.
Four arrested for corruption in Eskom deal on Kusile power station
Two former employees of the South African arm of Asea Brown Boveri (ABB), a multi-national engineering firm headquartered in Switzerland, and their wives have been arrested on charges of fraud, corruption and money-laundering stemming from contracts awarded to Impulse International for lucrative work at Eskom’s Kusile and Matla power plants.
New laws coming for cryptocurrency in South Africa
The South African Reserve Bank is set to introduce new regulations around trading cryptocurrency in the country in the next 12-18 months, says deputy governor Kuben Naidoo.
Two Financial Asset Managers Charged in Alleged $1.2 Billion Venezuelan Money Laundering Scheme
Two financial asset managers have been charged with money laundering as part of a $1.2 billion international scheme to launder funds corruptly obtained from Venezuela’s state-owned and state-controlled energy company, Petróleos de Venezuela S.A. (PDVSA).
South Africa aims to fix Money Laundering rules by year-end
The head of South Africa’s National Treasury said he is “pretty confident” the country will have addressed regulatory weaknesses in its money laundering controls by year-end, a move that should help avert its inclusion on a global watchdog’s list of nations that are subjected to greater oversight due to their shortcomings in tackling illicit finance.
3 scams targeting consumers in South Africa right now
South Africans are facing an increasing risk of becoming a victim of fraud, new data from the Southern African Fraud Prevention Service (SAFPS) shows.
SA has extradition documents from US for alleged cybercrime kingpin, court hears
Alleged cybercrime kingpin James Junior Aliyu, who was arrested for fraud and money laundering in Sandton, Johannesburg, will spend more time behind bars after his case was postponed on Tuesday.
UAE imposes $11m in fines for anti-money laundering offences in the first half of 2022
The UAE’s anti-money laundering task force imposed fines of more than Dh41 million ($11m) in the first six months of 2022, as it continues to rein in illicit financial activity.
Secret operations: the Peruvian charged with laundering massive amounts of drug money
For decades, Carlos Sein Atachahua allegedly led a global money laundering empire. Police say his gang’s drugs, sent with logos depicting ancient Peruvian symbols, reached Italy’s ‘Ndrangheta and other criminal groups, while corrupted money-exchange houses around the world were allegedly used to launder profits.
The Guptas leveraged existing SA money laundering networks
Sophisticated money laundering networks existed in South Africa before the Guptas, the Zondo Commission has revealed in Part VI Vol III of the Zondo Report.
Read More >>Two more people arrested in R30m cryptocurrency investment scam
Zain Muhammed Valle, 57, and Michelle Bianca Bezuidenhout, 25, appeared in the Lenasia Regional Court in Johannesburg on Tuesday. They joined Bezuidenhout’s husband and co-accused, Jarrod de Lange, 32, in the dock. Lenasia police arrested De Lange in 2020.
Read More >>Ramaphosa maintains silence on details of Phala Phala forex saga while scandal overshadows G7 visit
President Cyril Ramaphosa has maintained his silence beyond citing ‘due process’ in five parliamentary replies to the opposition. But his arrival at the G7 Summit is under a cloud as German media raise the Phala Phala forex scandal.
Read More >>Credit Suisse found guilty in money laundering case
Credit Suisse and a former employee have been found guilty by Switzerland’s Federal Criminal Court of failing to prevent money laundering in the country’s first criminal trial of one of its major banks.
Read More >>EU backs crypto anti-money laundering rules
European Union negotiators have reached a provisional agreement on anti-money laundering rules for cryptocurrencies that would spur crypto firms to check their customers’ identities, in the latest regulatory tightening of the freewheeling sector.
Read More >>Scenes from Dubai: Gupta brothers remain behind bars, extradition process unlikely to be public
The National Prosecuting Authority (NPA) now has less than 50 days to formally charge Atul and Rajesh Gupta with further state capture offences, if it wants them to face more than just the Nulane scam prosecution.
KZN’s former Treasury head Sipho Shabalala found guilty of corruption, money laundering and fraud
Former KwaZulu-Natal treasurer Sipho Shabalala has been found guilty of corruption, fraud, money laundering and contravening the Public Finance Management Act relating to his role in the “amigos case” involving the award of a contract for the supply of water purification plants in return for “sweeteners”.
No future for youth with ‘money launderer’ as president, says EFF and ATM in Youth Day debate
The usually mundane annual debate on Youth Day in the National Assembly couldn’t escape the allegations against President Cyril Ramaphosa, with the EFF and ATM arguing that South Africa’s youth had no future with an alleged “money launderer” as the head of state.
There’s some promising movement in the extradition of the Bushiris
It seems there has been a “flutter of movement” in the extradition case of self-proclaimed prophet, Shepherd Bushiri, and his wife from their home country of Malawi.
Federal ‘failures’ on money laundering prompt British Columbia, Canada (B.C.) inquiry to call for provincial watchdog
The Cullen Commission‘s final report into money laundering in B.C. has faulted senior provincial government ministers, including former premier Christy Clark, for being warned about incredible growth in suspected laundering of criminal cash in the government’s casinos, but failing to “ensure such funds were not accepted”.
UAE considers Gupta brothers’ extradition to SA
Rajesh and Atul Gupta are wanted in SA on fraud and money laundering charges, and were detained after Interpol placed them on its most-wanted list.
Why the Public Protector is being impeached, slowly and controversially
The South African Public Protector, Advocate Busisiwe Mkhwebane, is doing an impressive job at protecting – her seat, that is, not the constitutional democracy. An impeachment enquiry is underway to establish whether there are grounds for her removal from office. However, the process has been heavily litigated, delayed and politicised.
Information, AML/CFT steps are key to fighting international digital crime, DOJ report says
The United States Justice Department report, mandated by the president’s executive order on digital asset development, recommends more efforts along the lines already being pursued.
Casinos: an easy way to launder money?
Dirty money earned from illegal activities like human trafficking or drug trafficking can be brought into a casino and no one will ask questions. From the moment the person plays and wins, the money they brought in becomes ‘clean’ because they can say it was their winnings.
19 Indicted in International Drug Money Laundering Scheme
France ranks among the top OECD countries in the effective tackling of financial crime, the Financial Action Task Force’s (FATF) latest evaluation report claims. However, illicit financial dealings related to drug trafficking in French overseas territories are proving hard to combat.
South Africa faces another ‘incompetence tax’ – what you should know
The South African Reserve Bank has flagged an upcoming Financial Action Task Force meeting as an emerging risk, with the outcome important for how the rest of the financial world sees the country.
Unit 4 at Kusile is now officially contributing 800MW of power to the grid full-time
A generating unit at Eskom’s troubled Kusile power station in Mpumalanga is now officially contributing power to the grid full-time.
Former Msinga municipal CFO arrested for fraud, money laundering
The former chief financial officer at Msinga Municipality in KwaZulu-Natal has been arrested after being under investigation since 2016.
The toxic chocolatier – The case for prosecuting Glencore executives
By pleading guilty to decades of bribery, corruption and price manipulation around the world, Glencore confirmed a poorly kept secret – criminality was a key pillar of the company’s business model.
19 Indicted in International Drug Money Laundering Scheme
France ranks among the top OECD countries in the effective tackling of financial crime, the Financial Action Task Force’s (FATF) latest evaluation report claims. However, illicit financial dealings related to drug trafficking in French overseas territories are proving hard to combat.
Former Ekurhuleni senior officials, businessman get jail time for tender fraud
Two former Ekurhuleni senior officials and a businessman were handed jail time sentences by the Pretoria Commercial Crimes Court for tender fraud amounting to over R30m.
SARB eyes digital rand to cut cross-border payment costs
It costs 13% of a transaction to remit money from SA to another country, more than double the average of the Group of 20 leading global economies.
Alleged member of notorious online romance scammers ‘Black Axe’ granted bail with strict conditions
A Nigerian citizen who is accused of being a member of the Neo Movement of Africa, also known as the “Black Axe”, was granted bail with strict conditions.
Allianz to pay $6 billion in U.S. fraud case, fund managers charged
Germany’s Allianz SE agreed to pay more than $6 billion and its U.S. asset management unit pleaded guilty to criminal securities fraud over the collapse of a group of investment funds early in the COVID-19 pandemic.
France effective in combating financial crime, though some critical gaps remain
France ranks among the top OECD countries in the effective tackling of financial crime, the Financial Action Task Force’s (FATF) latest evaluation report claims. However, illicit financial dealings related to drug trafficking in French overseas territories are proving hard to combat.
Reserve Bank smoked out Guptas’ money laundering Bank of Baroda before State Capture findings
It’s a rare State Capture intervention success story. Without the Bank of Baroda, the Gupta corruption and racketeering enterprise would not have been able to smuggle billions out of South Africa to fund its international ambitions, evidence before the State Capture Commission of Inquiry revealed.
Another suspect expected in R103m Absa fraud case
Another suspect is expected to appear in the R103m Absa fraud case, which resumes in the Johannesburg commercial crimes court, sitting in Palm Ridge, on Thursday.
New phone rules planned for South Africa – what you should know
The Independent Communications Authority of South Africa (ICASA) has proposed linking biometric data to SIM cards. If approved, the new regulations would require all South Africans to provide their biometric data to mobile service providers to obtain a new cellphone number or approve a SIM swap.
Estina dairy farm: R37.7m fraud case of alleged Gupta associates a step closer to trial
The R37.7 million fraud case of two alleged Gupta associates, Kamal Vasram and Saliesh Indurjeeth, is a step closer to trial after the matter was postponed in the Pretoria Magistrate’s Court on Tuesday.
Pandora Papers shed light on ‘gatekeepers’ of dirty money says European watchdog
MONEYVAL rebuked governments across Europe for failing to combat money laundering or police lawyers, accountants and other professionals who facilitate financial crime.
Only God can help the State’s case, says World Cup graft-accused Thoshan Panday
Thoshan Panday, the uMhlanga businessman accused of multi million-rand fraud relating to the 2010 Soccer World Cup, appears to believe the State will need divine intervention to successfully prosecute the case.
Woman remanded in custody after being arrested for allegedly defrauding SARS
The Nelspruit Magistrate’s Court has remanded 31-year-old Pretty Sambo (31) in custody after she was arrested and added to the list of six other people accused of defrauding the South African Revenue Service of almost R1 million.
NPA claims legal victory with R1.6bn restraint order against Gupta-linked Regiments Capital
Regiments Capital has suffered a significant loss in its bid to evade prosecution, with a full Bench of the high court ruling that there are reasonable grounds for believing that a criminal court may convict the defendants, including the director defendants, of the offences identified by the National Director of Public Prosecutions.
US Tax Coffers lose $640 billion of taxable profits due to trade-based tax evasion and money laundering in 2021
Plastic buckets exported to the United Kingdom for $.01 each seems like a bargain, while single line telephones imported from China for $505.03 each is steep pricing. It is also unclear how non-industrial diamonds can be exported to France for $2.32 per carat but imported from South Africa for $929,390.82 per carat. In fact, these are examples of abnormally priced goods both exported and imported by US companies or criminals that illustrate complex tax avoidance or money laundering strategies.
James Stunt among eight accused of £266m Bradford money-laundering scam
The former husband of heiress Petra Ecclestone has gone on trial accused of being part of a £266m money-laundering operation.
Bookkeeper in Gqeberha found guilty of R2.4m tax fraud
Linda Ann Labuschagne, 42, was convicted on multiple charges of tax fraud in the Specialised Commercial Crimes Court in Gqeberha. She was arrested by the Hawks on 20 July 2021, after the cases were reported by two tax firms she worked for in 2019 and 2020.
Ethekwini ANC faction chooses power over the people
Zandile Gumede’s election to yet another powerful position in the KwaZulu-Natal region is, by most accounts, in the interest of her self-serving supporters and not the long-suffering residents.
Jacob Zuma threatens to bring South Africa to its knees if he is jailed
The former president’s supporters threaten to resort to violence again in a deeply divided country, putting its democracy on the line and its economy in peril.
Please don’t steal South Africa’s flood money: government
Parliament’s portfolio committee on water and sanitation has warned against ‘the abuse of resources for the benefit of a selected few’ as money and resources pour into KwaZulu-Natal to help those affected by the recent flooding.
Richard Mdluli, former Crime Intelligence boss, forces another delay over legal costs in corruption case
The South African Police Service has already declined to pay for former Crime Intelligence boss Richard Mdluli’s lawyers in his fraud and corruption trial. Now Mdluli wants a court to review this decision. The State is having none of it.
SIU gets go-ahead to seek nearly R5m from Mkhize family
If former health minister Zweli Mkhize and his family have been celebrating the decision by Parliament’s ethics committee to clear him in regard to the Digital Vibes affair, they may want to put the cork back in the champagne bottle.
Corruption trial delayed against South Africa’s ex-president
The corruption trial in South Africa of former President Jacob Zuma has been postponed again on Monday pending the outcome of the ex-leader’s appeal to get the state prosecutor removed from his case.
‘Money-flipping’ and the other investment scams hitting South Africa right now
There has been news aplenty about an onslaught of investment scams since the start of 2022, from popular shows on Netflix glorifying the brazen tales of “swindlers”, to home-ground stories about opportunists fleecing individuals as well as businesses.
Corruption and fraud sends South Africans down the drain
Corruption and fraud in the Department of Water and Sanitation, and the collapse of local governance mean taps in many towns and villages have either run dry or have undrinkable water.
Case against DA councillor Nora Grose postponed again
DA ward councillor Nora Grose, who is being probed for the alleged misappropriation of funds, made a brief appearance in the Bellville Commercial Crimes Court in Cape Town on Wednesday.
Financial crime: South African fraud gang dismantled
A fraud gang suspected of swindling a US-based company out of some EUR 455,000 has been taken down in raids across Johannesburg, led by investigators from the Hawks Serious Commercial Crimes Unit and US Secret Service agents, and supported by INTERPOL.
SA car dealers at high risk of falling prey to money laundering: Financial Intelligence Centre
SA’s motor vehicle dealers are at high risk of falling prey to money laundering by clients who use cash to buy vehicles.
South Africa looking at introducing ‘digital rand’
The South African Reserve Bank (SARB) is actively experimenting with digital currency and distributed-ledger technology, but this cannot be done in isolation from the wider financial industry, says Governor Lesetja Kganyago.
Africa’s coastal regions and economies sinking beneath a sea of maritime sector corruption
Grand corruption in Africa’s maritime sector has led to overfishing, resource scarcity and a rise in criminality, with coastal communities most affected.
Ex-ANC MP Vincent Smith’s tax fraud, corruption case postponed
The former parliamentarian faces charges of tax fraud, money laundering, corruption and breach of the FIC Act.
Duo who defrauded Eskom out of R35m sentenced to 20 years’ imprisonment
A former Eskom employee and a service provider have been sentenced to 20 years’ imprisonment in the Palm Ridge Commercial Crimes Court.
520 illegally imported cars to be destroyed in the Eastern Cape
Road Traffic Management Corporation (RTMC) spokesperson Simon Zwane said the cars were tracked in 2017 in a mass operation that included the police’s crime intelligence, anti-corruption, and vehicle safety storage (VSS) units; the National Prosecuting Authority; and the RTMC’s own anti-corruption unit.
Why South Africans are falling prey to Tinder Swindler-type online romance scams
According to a study done by Techshielder, a technology and online security news website, South Africa is one of 20 countries in the world where people are most likely to fall victim to online romance scams.
AFU freezes R18m fraudulently paid into SA bank accounts by Lesotho government officials
The Free State High Court has granted an order for the Asset Forfeiture Unit (AFU) to freeze more than R18 million that was fraudulently paid into South African bank accounts by Lesotho government officials.
Rhodes University finance administrator convicted of defrauding the institution
The Gqeberha Commercial Crime Court convicted the financial administrator at Rhodes University for defrauding the institute of over R400 000.
Red flagged: Terror-linked networks in South Africa a ticking time bomb
Financiers of extremist groups are slipping through the law enforcement cracks amid suspicions and accusations that the country is part of a vast network of terrorist cells.
Pretoria meets US Treasury over anti-money laundering, terror financing matters
National Treasury has held meetings with the US Treasury Department in Pretoria to discuss a number of financial sector-related matters.
SA’s economic links to the global system pose foreign policy constraints
South Africa must strike a careful balance between its political views and what is in the best interest of its economic and financial systems.
R103m Absa fraud case: Case withdrawn against slain IT specialist as State recoups R66 million
The case against slain Absa specialist engineer Xolela Masebeni, 30, was withdrawn after a death certificate was presented in the Palm Ridge Specialised Commercial Crime Court.
3 new cryptocurrency rules coming for South Africa
Cryptocurrency is gaining momentum in South Africa and the government made it clear in its 2022 Budget Speech that it is taking it very seriously, says advisory firm Tax Consulting SA.
The abalone trade is rife with violence and corruption, says the Global Initiative Against Transnational Organised Crime
Today the abalone trade is rife with violence and corruption, enmeshed in the drug trade and controlled by local gangs.
‘Industrial-strength money laundering’ at Optimum Coal Mine the epicentre of State Capture
The case constitutes an epilogue to the long-running saga of the Optimum Coal Mine, and pits the National Prosecuting Authority (NPA) against the mine’s business rescue practitioners in an unusual dispute over whether legal action can be taken against a company in business rescue.
SIU argues Digital Vibes was a ‘money laundering scheme used to benefit Mkhize family’
The Special Investigating Unit argued before the Special Tribunal that the Digital Vibes contract was a money-laundering scheme designed to siphon funds to former minister Zweli Mkhize’s family while also shielding the family from accountability.
Here are South Africa’s top scammers listed by the FBI
The Federal Bureau of Investigation (FBI) has listed South Africa’s (Cape Town based) top scammers who are suspected of running international wide-scale fraud.
Finance, justice departments vow to root out ISIS activities in SA
The US Treasury’s Office of Foreign Assets Control (OFAC) designated four people, including two South African men, as alleged financial facilitators of the Islamic State of Iraq and Syria and ISIS-Mozambique, pursuant to a US executive order.
Sanctions and boycotts: how the west has responded to the invasion of Ukraine
Governments are imposing sanctions against Russia while European and US companies have severed ties.
Former municipal CFO gets six years in jail for fraud, money laundering
Gcobani Mntumni, who was a financial officer at the Mbhashe municipality, added bank accounts belonging to his siblings and friends into the municipality payroll. The municipality paid the ghost employees, and the fraudulent activities were discovered in March 2015.
Concern as South Africa features in top 10 list of countries hardest hit by cybercrime
While South Africa sits sixth in the countries found to have the most cybercrime, research has shown that South Africa has shown the sharpest rise in cybercrime recently compared to any country in the world.
Money laundering, corruption uncovered at National Lotteries Commission
According to SIU Chief National Investigations officer Leonard Lekgetho, the SIU seeks to recover any financial losses suffered by the State and the National Lotteries Commission (NLC). This after an investigation into the affairs of the commission uncovered millions of rands in alleged money laundering and corruption.
Now it is up to the UAE to extradite Gupta brothers, says JCS department
The Department of Justice and Correctional Services says the ball is now in the United Arab Emirates’ (UAE) court to extradite Atul and Rajesh Gupta to South Africa to face fraud charges.
Convictions show South Africa’s ‘strong stance’ on international terrorism
The convictions of two South African brothers who attempted to join Islamic State show the country has taken a “strong stance” in fighting international terrorism, a legal expert has said.
Is Malta Destined to be Europe’s Next Economic Graveyard?
Aside from being rather pleasing on the eye, the smallest state in the European Union is fast becoming a cesspool of financial degradation that is leaving a stain on the entire EU project.
South African judge dismisses Zuma’s bid to appeal prosecutor ruling
A South African judge on Wednesday dismissed a bid by former president Jacob Zuma to appeal an earlier ruling rejecting his attempt to have the prosecutor in his arms deal corruption trial taken off the case for alleged bias.
Blood ties: South Africa caught in a web of murderous, drug-smuggling Brazilian gangs
A tale of cop collusion, a ‘most wanted’ fugitive hiding in South Africa, a double murder in Brazil, and cocaine concealed in sugar shipments to Durban.
Duo remanded in custody for fraud
Themba Titos Sibeko (39) and France Josia Moiane (24) were remanded in custody by the Middelburg Magistrates’ Court on Thursday, 10 February 2022 after they were arrested by the Hawks’ Serious Commercial Crime Investigation based in Middelburg for fraud, theft, contravention of the Cybercrime Act and possession and presenting counterfeit cards at Veritas filling station in Middelburg.
Bushiri extradition case: Malawi High Court orders lower court to continue with committal proceedings
The Malawi High Court has ordered that a local magistrate’s court should continue with extradition committal proceedings in the case of self-proclaimed Prophet Shepherd Bushiri and his wife, Mary.
Gupta ‘racketeering’ at Transnet – tough job ahead for prosecutors
The Zondo Commission has named Gupta family members and their allies for running a racketeering scheme at a key state-owned enterprise. But successfully prosecuting wrongdoers for racketeering is hard because the act of wrongdoing is broad and there’s no offence associated with it.
Corporate corruption in South Africa demands global action in response
The UK and other governments must cancel lucrative contracts for companies linked to state capture by the Guptas.
R1.9m PPE tender fraud: Court hears some accused ‘committed crimes while on bail in other cases’
Two of the 15 people accused of defrauding the police through a personal protective equipment (PPE) tender have admitted that they have pending cases.
VBS looting suspects appear in court
Two accused, former mayor of Thulamela Local Municipality, Avhashoni Tshifhango and Municipal Manager Hlengani Maluleke appeared before the Thohoyandou Magistrates’ court and were granted bail of R30 000-00 each.
Crypto bucks rising financial crime trend
Reported fraud across the financial services industry in Africa has spiked, particularly in South Africa. However, while financial crime is on the rise, there has been a decline in illicit crypto transactions according to the foremost blockchain analysis company Chainalysis.
‘Gangsters and underworld cartels’ are infiltrating municipalities – Oscar Mabuyane
Eastern Cape Premier Oscar Mabuyane says safeguarding municipal resources won’t be easy – because “gangsters and underworld cartels” have infiltrated local councils.
How Transnet was the primary site of State Capture
The Zondo Inquiry established that racketeering, money laundering, fraud, kickbacks, corruption and many other financial crimes were the order of the day at the company that served as the engine of the country’s economy.
Preventing corruption is the key
Amnesty is not possible under South Africa’s Constitution. The only amnesty available in the country is for those who are willing to plead guilty and stand as a witness against their fellow thieves.
Accused sentenced to direct imprisonment for money laundering
An entity, Mpenyani CC and Lusufi Abednego Mabuza (39), were found guilty by the Nelspruit Commercial Crime Court on Monday, 31 January 2022 for fraud and money laundering.
Vincent Smith tax fraud and money laundering case set down for April
The tax fraud and money laundering case against former ANC MP Vincent Smith has been set down for 6 April 2022.
Alleged underworld figure Nafiz Modack and co-accused denied bail
After nearly nine months in custody, controversial businessman and alleged underworld kingpin, Nafiz Modack and his co-accused have been denied bail in the Blue Downs Regional Court.
Mandela funeral scandal: Buffalo City stops paying legal fees of 4 former senior councillors
Four of the 14 people accused of siphoning R10 million from the Buffalo City Metro, after allegedly disguising it as payment for the funeral preparations of the late Nelson Mandela in 2013, have been dumped by their lawyer after the metro council stopped footing their legal bill.
Gupta Inc loses high court bid to block Optimum business rescue practitioners
Optimum Coal’s business rescue practitioners have scored an important win over the Guptas but they may still be forced back to court.
Service provider sentenced to ten years for theft and money laundering
A service provider, Thumeka Qongqo (44) has been sentenced to ten years imprisonment for theft and money laundering through her entity, Ogiyonke Construction Company by the Mthatha High Court on Monday, 17 January 2022.
MTI’s Johann Steynberg arrested in Brazil
South Africa’s financial regulator has confirmed that it has been notified by the Hawks of Steynberg’s arrest in the South American country.
South Africa’s real estate industry is worried about the impact of this type of crime
Having increased by over 300% during the pandemic, cybercrime is fast becoming one of the biggest threats to businesses globally – and the real estate industry is no exception.
Bain, Zuma and Moyane colluded to seize and restructure SARS
Zondo Commission recommends that all Bain’s contracts with state organs be re-examined.
NPA and Hawks to act against accused in Zondo commission report
The National Prosecuting Authority (NPA) and the Hawks are hard at work reviewing the Zondo commission report with the view to act against those who were responsible for state capture.
Former police officer condemned to ten years direct jail time for fraud
Former Warrant Officer, Stephan Ferreira (47), has been sentenced to ten years imprisonment by the Rustenburg Regional Court on Wednesday for defrauding the South African Police Service (SAPS) of just over R1.7million.
12 poachers arrested around Kruger National Park within past month
The arrested suspects were found in possession of high-calibre firearms, ammunition, poison, knives, snare cables and rhino horns.
Northern Cape arrest on R400k money laundering charges
Investigators said the man received money, believed to be the proceeds of crime, from the Value FX investment company, which is currently under investigation by the Hawks.
Employee jailed for stealing R5.9 million from Illovo Sugar
The employee who worked in the finance department of Illovo Sugar diverted the stolen monies into her bank account as well as that of a family member and a friend.
FSCA looking to unveil Crypto regulatory framework soon
South Africa’s financial sector regulator, the Financial Sector Conduct Authority (FSCA) is set to unveil a new regulatory framework that covers cryptocurrency in early 2022.
UK NatWest Bank fined £260m after pleading guilty in money laundering case
Gold trader brought cash into some branches of Britain’s biggest business bank in black bin bags. NatWest took in about £365m in deposits, more than two-thirds of which was in cash, across nearly 50 branches.
Cash is king on the ground in the illegal wildlife trade
The money flows in wildlife trafficking have been detailed in the first report by the South African Anti-Money Laundering Integrated Task Force. Cash is still king, but further up the supply chain, payment methods and laundering tactics become far more sophisticated.
R111m businessman stole from Covid-19 UIF TERS will be forfeited to the state
Impossible Services (Pty) Ltd fraudulently received R111m from the Unemployment Employment Fund’s temporary employment relief scheme (TERS).
Former Mayor of Nketoane Municipality and accomplices sentenced for fraud
A whistleblower reported alleged tender fraud and corruption committed at Nketoane Local Municipality regarding the installation of equipment in the parks.
Biden vows to fix money laundering loopholes
President Biden’s administration are announcing an anti-corruption strategy meant to tackle two major vehicles for money laundering in the United States — real estate transactions and shell companies.
International Anti-Money Laundering operation results in 1803 arrests
Police in 26 countries undertook a joint operation that led to the arrest and identification of thousands involved in laundering money through various online scams such as sim-swapping, man-in-the-middle attacks, e-commerce fraud and phishing.
Organised crime has increased across Africa during Covid-19 pandemic
Organised crime got worse in 42 countries on the continent between 2019 and 2021, with Africa experiencing an annual loss of US$88.6 billion in illicit financial flows linked to criminal activities.
Asset Forfeiture Unit attaches former Nelson Mandela Bay ANC regional secretary house
The NPA said home of former Nelson Mandela Bay ANC regional secretary Zandisile Qupe was bought in cash using funds he siphoned from the Nelson Mandela Bay Metro.
Traffic department official found guilty of soliciting tender bribe
A service provider approached the Hawks when the official wanted money to influence the panel to award them the tender.
Gauteng arrest over R3.2m property purchase email interception
A Gauteng woman allegedly intercepted and re-directed a property buyer to a fraudulent email where they provided new banking details to which over R3.2m was transferred for the property sale.
Two imprisoned for possession of rhino horns & corruption
Mozambique citizens were sentenced in Middelburg to six years for possession of rhino horns, five years for corruption and three years for possession of a shark fin having offered police officers R20 000 to turn a blind eye to criminal act.
Alleged ringleader of multi-million rand gold smuggling and money laundering racket was arrested again
A man accused of running a gold smuggling syndicate was out on bail when he was arrested for a second time by the Hawks last week.
Two men in the court in R4.5m land claim fraud case
The men were arrested by the Hawks’ Serious Commercial Crime Investigation team for alleged fraud, theft and money laundering of more than R4.5 million as part of a fraudulent land claim scam.
FNB branch operations manager arrested for ‘R4m forex fraud’
A FNB branch operations manager has appeared in court for allegedly defrauding the bank of R4m in forex payments over two years.
Thousands of govt employees received fraudulent Covid-19 grants
At least 6 000 employees in 24 government departments received payments from the Unemployment Insurance Fund’s (UIF) Temporary Employer-Employee Relief Scheme (TERS).
Home affairs officials in court over rampant corruption at Lebombo border post
It is alleged the officials were issuing temporary residence permits, working permits and also stamping passports to extend the stay of the illegal immigrants who are coming from Mozambique, Swaziland, Zimbabwe and Malawi.
Fraudster who stole R11m from FNB is jailed in Durban
Nadeem Arshad, was convicted of 26 counts of fraud and one count of money laundering. He committed the crimes together with two co-conspirators who have absconded.
Anti-gang unit sergeant arrested for alleged corruption
It is alleged that the sergeant was arrested after information was received that he requested a sum of money to arrange that a suspect in a murder case he was investigating was released on bail.
Truck driver arrested for trafficking R2m worth of drugs
Arresting officers discovered two bags of dagga, weighing about 60.2kg, as well as 39000 mandrax tablets concealed in plastic bags.
Alleged investment fraudster arrested for R3 million scam
Three suspects lured community members in Kuruman to invest money into their company called ‘Value Fix’ and were promised their investments would yield a 100% interest return.
Alleged underworld boss Nafiz Modack arrested on tax fraud charges
Nafiz Modack appeared in court on Wednesday on charges of racketeering, fraud, money laundering, uttering and contravention of the VAT Act.
Eight charged in US with conspiring to engage in internet scams and money laundering from Cape Town
Seven leaders of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” charged in US with multiple federal crimes relating to internet scams they perpetrated from South Africa.
Former Eskom finance controller found guilty of R35m fraud
Bernard Moraka will be sentenced for running a two-and-a-half-year scam with Victor Tshabalala, the sole director of Meagra Transportation, who received 53 fraudulent payments for work not done.
Hawks shut down four money lending businesses in North West
Four alleged loan sharks were closed for running illegal money lending businesses in Coligny in North West.
Former ANC MP Vincent Smith faces charges of tax fraud and money laundering
It is alleged that Smith failed to declare additional income of over R13m to SARS and also faces additional charges of fraud for alleged payments to the value of R800 000 made to his company.
Alleged crime boss is among 8 suspects arrested in R219m tax return fraud case
Eight people have been arrested in Cape Town in connection with a R219 million tax return fraud case claiming VAT refunds which could not be substantiated.
R1.4m vehicle finance fraud case in Pretoria court
It is alleged that the accused fraudulently created false payslips under his company when applying for vehicle finance at three car dealerships in Pretoria.
Alleged fraudster arrested for approximately R1.8 million of tax fraud
The Palm Ridge Specialised Commercial Crimes Court heard on 18 October how an alleged fraudster, Sphesihle Floyd Nzimande (35), submitted false tax returns which allegedly caused the South African Revenue Services a loss of approximately R1.8 million.
Eastern Cape businessman due in court over R3.9m counterfeit goods
Suspected counterfeit cell phone accessories valued at more than R3.9 million were seized by customs officials in Gqeberha.
Bank staff and businessman among 8 arrested for Nedbank fraud
It is alleged that in December 2020 an amount of R500 000 was stolen from a Nedbank client’s account by a bank employee and transferred to a Funeral Directors account.
Two University of Fort Hare officials resign amidst fraud allegations
Two senior managers responsible for student funding allocations at the University of Fort Hare approved designated stores for students to purchase their study material and food, then allegedly accepted kickbacks from shop owners.
Mkhize in court bid to set aside SIU’s findings on Digital Vibes
Mkhize has argued that the SIU report ended his career as a public servant.
Magashule corruption case postponed to 3 November for pre-trial hearing
Magashule and the co-accused, 10 individuals and five companies, face over 70 charges including theft, corruption and money laundering in connection with a R255 million asbestos roof eradication tender.
Alleged fraudster arrested for approximately R1.8 million of tax fraud
The Palm Ridge Specialised Commercial Crimes Court heard on 18 October how an alleged fraudster, Sphesihle Floyd Nzimande (35), submitted false tax returns which allegedly caused the South African Revenue Services a loss of approximately R1.8 million.
SA failing to combat money laundering & terrorist financing
While progress has been made to combat money laundering and terrorist financing since the FATF’s last assessment on South Africa, in 2009, this is fragmented and superficial.
Mkhwebane opposes Mabuyane’s application to have graft report set aside
According to the public protector’s report, Mabuyane ‘improperly benefited from the misuse of public funds’.
Two businessmen and former health department head arrested for tender fraud
Former Head, who once was a police officer, awarded security services tender irregularly to firm that submitted fraudulent documentation.
Police arrest suspected SASSA money launderers
Three suspects are facing charges of money laundering and being in possession of stolen goods after being found with 70 SASSA cards.
R20m of Abalone confiscated by Hawks in Western Cape
Nine foreign nationals were arrested for abalone smuggling and operating an illegal abalone processing facility in Welgemoed, Bellville.
Businessman arrested for defrauding Mpumalanga education department
A transport service provider submitted invoices for services that were never rendered, and during periods when schools were closed.
US man sentenced to 3 years in prison for drug money laundering
A Californian man was sentenced today to 36 months in federal prison for laundering more than U$900,000 in drug money over a two-year period via a “Black Market Peso Exchange” for Mexico-based drug traffickers.
FSCA Annual report highlights FICA weaknesses
The 2020-1 report identified that Accountable Institutions have difficulty understanding their money laundering / terror financing risks and struggle to develop a customised Risk Management and Compliance Programme (RMCP) or proper risk-based approaches/assessments.
Eastern Cape Education Official in court for R4m PPE fraud
The Hawks allege the supply chain director for the provincial education department, had authorised fraudulent payments – to the tune of R4 million – for a supply of personal protective equipment (PPE) to a company owned by her 30-year-old sister.
Suspended sentence for VAT fraud and money laundering
A Tshwane businesswoman was found to have fraudulently claimed VAT returns from SARS and received 12 years sentence for fraud and 15 year sentence for money laundering, both suspended for five years.
FBI arrest 11 Nigerian nationals over ‘romance’ fraud & money laundering
A US federal grand jury has indicted 11 Nigerians in the US for alleged fraud conspiracy, money laundering, mail & wire fraud around defrauding elderly victims in romance scheme.
$4.5bn money-laundering gang in Saudi Arabia jailed for 20 years
A group of 24 Saudis and expats carried out their criminal operations within an organised framework, under the cover of commercial facilities that included factories, companies, institutions and medical clinics.
Ramaphosa authorises release of Digital Vibes report
President Cyril Ramaphosa has authorised the release of the Special Investigating Unit’s (SIU) final report into the health department’s irregular R150 million contract with Digital Vibes.
Man receives two 15-year prison term for fraud and money laundering R1.7m of North West municipality funds
The North West Hawks said that the money was transferred from the municipal account into an account purported to be that of the SA Post Office.
Western Cape man to appear in court over R3.1 million pyramid scheme
It’s alleged that the accused solicited funds from members of the public of just over R3.1 million that would be used to trade in cryptocurrency on forex platforms. The funds were instead laundered into various bank accounts, where it was used for personal gain.
Former bank employee sentenced to 8 years for fraud & money laundering
Whilst working at the bank the employee illegally transferred R536 000 to three different accounts belonging to family members and an unsuspecting account holder, from a bank account holder who won the lottery.
Former Free State mayor, CFO and service provider guilty of fraud and money laundering
Mandla Mamba, the former mayor of Nketoane, has been found guilty of fraud and money laundering through a duplicate invoicing scheme at the municipality.
SA finds corruption ‘worsening’
A survey by Afrobarometer released by the Institute for Justice and Reconciliation highlighted public perception that most citizens were dissatisfied with the way the government handles its fight against corruption and that a growing number of people feared retaliation if they reported corruption to the authorities.
Africa loses close to 90 billion dollars a year to illicit financial flows
Industry experts state that 60 percent of what leaves the continent through illicit financial outflows come from commercial and corporate activities, 35 percent from criminal activity and five percent from government corruption.
Hawks arrest Pretoria man with live abalone
The Hawks arrested a 26-year-old Pretoria man for allegedly being in illegal possession of abalone and attempting to bribe them with R10,000 to let him go.
SIU say R15.3 million tender for Limpopo’s Talana shacks fraudulent
The appointed service provider, Aventine Group CC, made misrepresentations and forged documents of industry experts.
Company director and acting municipal manager charged with tender fraud at the Mafube Local Municipality
It’s alleged that the former acting municipal manager, Nkabi Andrew Hlubi, received kickbacks after the Mafube Local Municipality awarded tenders worth an estimated R21million.
Estina dairy farm: New accused to be added in fraud and money laundering case
Two new suspects facing charges of fraud and money laundering around the alleged procurement fraud involving R24.9 million was allegedly diverted to a company owned and controlled by the controversial Gupta family.
US real estate is haven for African money-laundering assets
The use of anonymous shell companies or complex corporate structures remained the number one money laundering typology, with 14 percent of the assets identified originating from Africa and over 50 percent of the reported cases involved politically exposed persons.
Court grants provisional restraint order to freeze R1.4bn assets
The Pretoria High Court issued a provisional restraint order to freeze the the assets and bank accounts of a group of individuals facing corruption, money laundering and racketeering charges relating to kickbacks related to Kusile Power Station.
SIU details health department’s R132m Digital Vibes contract corruption
Flouting of procurement processes and a 104% price inflation were highlights among the irregularities in the national health department’s contentious R132-million contract.
Crypto exchange Binance tightens anti-money laundering checks after regulatory pressure
Major cryptocurrency exchange Binance said on Friday it would demand stricter background checks on customers to bolster efforts against money laundering, with immediate effect.
DA Councillor charged with food parcel fraud and money laundering
Money meant for food parcels in Atlantis was allegedly channelled to a Cape Town church with ties to the Councillor.
Ex-Transnet official must pay back millions
The Special Investigative Unit (SIU) Special Tribunal has ordered former head of Capital Projects to pay back R26.4m, due to inappropriate relationship with Transnet supplier IGS Consulting.
Annual AML survey highlights the challenges of compliance
Across the board, our survey respondents indicated that they experienced a significant uptick in regulatory reviews in 2020, with 71 percent of financial institutions across the globe citing increased regulatory scrutiny.
Durban man arrested in alleged house building scam
A Durban man’s eight-year crime spree came to end when police arrested him for allegedly defrauding unsuspecting victims of about R18m by claiming he was building houses at cost price and making off with their deposits.
Eastern Cape man fined and sentenced for R1.5m bank fraud
Capitec Bank in Graaff-Reinet was defrauded of R1.5 million between August 2016 and February 2017 when 13 loans were taken out at the bank using alleged fraudulent documentation.
ISS: Africa is a new playground for crypto scams and money laundering
The Institute for Security Studies says crypto in Africa still offers options for fraudsters and cyber criminals abound after the world’s two largest scams were perpetrated in South Africa in the last year.
Another suspect arrested for VBS-related corruption
The Hawks arrested another suspect in Klerksdorp in connection with the looting and ultimate collapse of VBS Mutual Bank.
Suspect arrested for R50,000 bribe relating to PPE Deal
The suspect was arrested after offering and handing over R50 000 to a SIU investigator in order to have a case relating to the Personal Protective Equipment (PPE) corruption against his sister disappeared.
Rothschild brothers facing federal money laundering charges
Two brothers are facing federal charges of money laundering after prosecutors say they stole a quarter-million dollars posing as FedEx employees.
Chinese Broker laundered Latin American drug money around the world
A Chinese businessman laundered tens of millions of dollars in drug money through a Guatemalan casino, a US seafood export company, Miami banks, and Chinese bank accounts.
Teacher and former principal bust over alleged ‘R3m tender fraud’
School governing body members including a teacher appeared in court on fraud and corruption charges over a security tender worth R3.1m.
SARS goes after alleged VBS looter who owes tax of R61m on ‘illicit’ income
The South African Revenue Service (Sars) wants its cut of money flowing to and from Limpopo businessman and alleged VBS Mutual Bank fixer, Kabelo Matsepe.
Suspended Health Minister Dr Zweli Mkhize’s son allegedly benefited from the Digital Vibes contract.
Dedani allegedly received more than R4.2 milion in electronic fund transfers (EFTs), including money for a car. This also allegedly included cash in plastic bags and cardboard boxes.
Money laundering ring pushed $4bn through HSBC
HSBC discovered a vast money-laundering ring moved $4.2bn through a network of 60 accounts in Hong Kong.
Jailed for 7 years over transnational drug money laundering network
A Hong Kong resident has been jailed for seven years in the US for trying to bribe an American government official to obtain US passports for a transnational money-laundering network.
