Bank staff allegedly facilitated gold smuggling, money laundering
An investigation by Al Jazeera has alleged that staff at three South African banks helped a global gold-smuggling ring by laundering millions of dollars in exchange for bribes, Business Day reports.
Gold Mafia, an investigation by Al Jazeera’s Investigative Unit, alleges that staff at Standard Bank, Absa and Sasfin had been on the payroll of Mohamed Khan, a reported accomplice of cigarette magnate Simon Rudland, who is alleged to be behind multiple Zimbabwean gold-smuggling gangs. These gangs are said to smuggle gold into South Africa, the proceeds of which are allegedly laundered through Khan’s companies before being transferred to offshore bank accounts.
The investigation links Khan’s companies to Rudland’s Gold Leaf Tobacco.
Gold Leaf Tobacco denied the allegations “in the strongest terms”, describing them as “scandalous and injurious” to Rudland and its business.
Standard Bank said it has a zero-tolerance stance relating to fraud and criminality and will report and assist in any lawful investigation. “These allegations are viewed in a serious light, and Standard Bank confirms that due process is being followed internally with regards to the matter.”
Sasfin told Business Day it proactively closed Gold Leaf Tobacco’s accounts after identifying suspicious transactions related to the company and reported the relevant information to the authorities.
Absa told Business Day it had detected alleged illicit tobacco and gold-based money-laundering activities in early 2020.
“Subsequent investigations uncovered a broad network, which linked the illicit tobacco trade and gold-based money laundering activities,” Absa said. “Absa has been working with multiple law-enforcement agencies on this matter and has fully discharged its regulatory reporting obligations.”
The FSCA told Business Day it was investigating certain of the non-bank entities named by Al Jazeera.
The Prudential Authority (PA) said it did not comment on matters relating to the institutions it regulated “as a matter of policy”. Nevertheless, the PA said it viewed the allegations in the Al Jazeera report “in a serious light and is giving due regard thereto”.
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FIC establishes forensic unit
The Financial Intelligence Centre (FIC) has established a forensic unit to help the government fight corruption and prosecute complex financial crimes, Bloomberg reports.
The unit, which opened on Saturday, will complement the FIC’s structures, the Centre’s executive manager, Christopher Malan, said in an interview. It’s expected to help expedite asset forfeiture and prosecutions, he said.
Having forensic capacity will help to ensure that matters can be taken to court quicker, particularly when it comes to dealing with major corruption and state capture-related crimes, he said.
National Treasury has allocated R265.3 million to the FIC, which the FIC will use to hire staff for the forensic unit and its expanded supervisory role, Malan said.
Full report published by Daily Investor
SA is determined to get off the grey list, says Ramaphosa
South Africa needs six months to demonstrate the effectiveness of two new laws that aim to curb money laundering and financing of terrorism as it seeks a quick exit from the Financial Action Task Force’s grey list, President Cyril Ramaphosa said, Bloomberg reports.
Ramaphosa signed the General Laws (Anti-Money Laundering and Counter-Terrorist Financing) Amendment Act and the Protection of Constitutional Democracy against Terrorist and Related Activities Amendment Act into law in December in a bid to address shortcomings that were identified by the Financial Action Task Force.
“It is our intention that we are removed from that grey list, and we are working very hard toward it,” Ramaphosa said on 30 March. “It is estimated that the country needs at least six months to demonstrate whether the recent amendments adopted by Parliament are effective.”
Ramaphosa said the National Prosecuting Authority and the Hawks were working hard to clamp down on financial crime and have been given additional funds to enable them to recruit more personnel.
“They have also been involved in the recovery of money that has been lost. The money that was illegally paid was recovered,” he said. “Progress is being recorded, and a number of prosecutions are also under way.”
Treasury is studying how Mauritius and other nations managed to get removed from the grey list and said it would ask the FATF to review its status during its June plenary session.
Full report published by Moneyweb
OUTsurance to boost its stake in Australian insurer Youi
OUTsurance Holdings Limited (OHL), the 89.7%-owned subsidiary of OUTsurance Group Limited (OGL), has entered into an agreement that could boost its ownership of its Australian business, Youi Holdings, by up to an additional 5.3%.
Youi is the holding company of Youi (Pty) Limited. OHL currently owns an 89.8% interest in Youi.
In terms of the agreement with Willem Roos, a non-executive director of OHL and OGL, OHL will acquire 50% of his shareholding in Youi for A$36 million, OGL said in a SENS announcement on 31 March.
Roos owns a 5.3% interest in Youi, so his 50% shareholding represents a 2.65% stake.
The deal became effective on March 30, but it is subject to various conditions being met, including obtaining foreign exchange approval from the South African Reserve Bank.
The agreement further provides the group with a call option to acquire the remaining balance of the shares by 31 October 2023 (the second transaction).
The long-stop date for the first transaction is 31 May 2023. If the first transaction is not concluded by that date because certain conditions have not been met, the shares that were not acquired in the first transaction will be subject to the call option in the second transaction.
The full acquisition of Roos’s interest will result in OHL ultimately increasing its stake in Youi from 89.8% to 95.1%.
Roos is one of the founders of OHL and was a member of the team that started Youi in 2008. He was the chief executive of OHL until 2018.
Roos acquired his interest in Youi through an employee share option scheme at the inception of Youi in 2008.
