“The motor vehicle dealers’ sector is a lure for criminals to hide their illicit proceeds, which poses a serious threat to South Africa’s financial system. Criminals can potentially launder large amounts of money through a single luxury vehicle purchase, making the sector a target for abuse,” according to the Financial Intelligence Centre (FIC). As a result, they have launched an awareness campaign aimed at equipping motor vehicle dealers with the tools and know-how to help identify and mitigate the risk of financial crime.
The FIC’s campaign encourages motor vehicle dealers to assist in the fight against financial crime by following three behavioural steps:
Step 1: Be aware of the origin of their clients’ money and other money laundering threats to which the sector may be exposed.
Step 2: Act/take action i.e. file a report with the FIC when a transaction or activity “does not feel right”.
Step 3: Disrupt crime by meeting FIC Act compliance obligations
Information released during the campaign will cover topics including:
- what is money laundering,
- the threats money laundering poses to the sector,
- how motor vehicle dealers and role players can mitigate these risks and
- the role of the FIC in ensuring the integrity of South Africa’s financial system.
Moonstone Monitor will keep you informed and re-share these topics in our newsletters as well.
Also read: Motor Dealers – Fines for not reporting cash transactions
