Latest: Corruption and Money Laundering.

South Africa: Laws to Fight Illicit Money Flows Must Be Strengthened.

Pretoria — It is important for countries to ensure they have the right legislation in place to fight illicit financial flows, which is on the rise on the African continent and elsewhere, Finance Minister Pravin Gordhan said on Thursday.

"Africa must move swiftly. We must ensure we have the right legislation. We must also build capacity of not only of our tax and customs authority but of our policing and prosecuting services as well. Strong cooperation between agencies is vital," Minister Gordhan said.

Speaking at the opening of the Illicit Financial Flows Tax Conference at the University of Pretoria, Minister Gordhan said illicit financial inflows and money laundering undermine good governance, which could reduce inequality and the quality of life of the poor.

The continent continues to lose money annually as a result of illicit financial flows. It is estimated at $50 billion every year.

The Minister said the dangers of illicit financial inflows - which in their nature are difficult to quantify - were identified as a priority under South Africa's first democratic President Nelson Mandela.

"The first administration of President Mandela recognised that illicit flows and money laundering pose a danger that should be taken very seriously by all countries," he said.

Failure by countries to take action against illicit flows not only means massive potential financial losses, but societal losses as well, Minister Gordhan said.

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