CORRUPTION WATCH: Banks keep lookout for ill-gotten gains
Dear Corruption Watch,
We read a lot about the families of foreign dictators buying expensive properties in South Africa. No doubt many wealthy South Africans similarly have large personal bank accounts in other countries. How do we know that these inward and outward flows are not the proceeds of corruption? — Neighbour
Dear Neighbour,
You are right to be concerned about the way in which the flow of money in and out of South Africa can facilitate corruption and criminal activity. Without proper controls, there is a risk that our banks and economy will be used to launder the proceeds of unlawful activities and allow criminals to evade prosecution.
Money laundering refers to any act that disguises the criminal nature or the location of the proceeds of a crime. South African legislation broadens the concept to virtually every act or transaction that involves the proceeds of crime.
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