South Africa Revenue Service Targets Enablers of Organized Crime

What Happened:

The head of South Africa’s revenue service announced plans to crack down on lenders and advisers who facilitate organized corruption and financial crimes, as part of efforts to tackle illicit capital flows and tax evasion.

Key Takeaways:

• South Africa's revenue service will intensify efforts to target "professional enablers" of organized corruption and financial crimes.
• The commissioner criticized banks for adopting a compliance-first mindset and not acknowledging the systemic risks associated with their clients.
• The commissioner emphasized the need for banks to be more discerning in their client relationships and avoid doing business with individuals involved in criminal activities.

Do You Know?

• Illicit capital flows are financial movements that are illegal, such as money laundering or tax evasion.
• "Professional enablers" are individuals or entities that assist in facilitating organized corruption and financial crimes.
• Plausible deniability refers to the ability of individuals or organizations to deny knowledge of illegal activities in which they may be involved.