Search
  Advanced Search
 
Journal search
Journal cover: Journal of Money Laundering Control

Journal of Money Laundering Control

ISSN: 1368-5201

Online from: 1997

Subject Area: Accounting and Finance

Content: Latest Issue | icon: RSS Latest Issue RSS | Previous Issues

Options: To add Favourites and Table of Contents Alerts please take a Emerald profile

Icon: .Table of Contents.Next article.Icon: .

The money laundering risk posed by low-risk financial products in South Africa: Findings and guidelines


Document Information:
Title:The money laundering risk posed by low-risk financial products in South Africa: Findings and guidelines
Author(s):Louis de Koker, (School of Law, Deakin University, Geelong, Australia)
Citation:Louis de Koker, (2009) "The money laundering risk posed by low-risk financial products in South Africa: Findings and guidelines", Journal of Money Laundering Control, Vol. 12 Iss: 4, pp.323 - 339
Keywords:Crime, Money laundering, South Africa, Terrorism
Article type:Research paper
DOI:10.1108/13685200910996038 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Abstract:

Purpose – The purpose of this paper is to investigate the level and nature of criminal abuse of financial products that are classified as posing a low anti-money laundering/combating of financing of terrorists (AML/CFT) risk in South Africa to determine the effectiveness of the simplified due diligence measures that apply to these products.

Design/methodology/approach – The paper presents empirical research on the views of bank officials and law enforcement officials regarding the criminal abuse of South African financial products that are subject to simplified customer due diligence controls.

Findings – South Africa's AML/CFT laws allow certain deposit-taking institutions and money remitters to implement simplified customer due diligence measures in relation to specific low-risk products that are mainly designed to allow previously unbanked persons to access financial services. The paper finds that the products have been abused by criminals but that the incidence of such abuse and the amounts involved are low. The paper investigates possible weaknesses in the current system that allow limited criminal abuse to occur. It concludes with a number of guidelines that emerge from the study and are of value to regulators that wish to implement a similar system.

Originality/value – The South African AML/CFT scheme in relation to low-risk products is of interest to many international regulators that are grappling with the interplay between effective AML/CFT controls and the impact of strict controls on the ability of socially and economically excluded persons to access appropriate financial services. This paper provides evidence that appropriately designed controls can facilitate financial inclusion while limiting the risk of criminal abuse.



Fulltext Options:

Login

Login

Existing customers: login
to access this document

Login


- Forgot password?
- Athens/Institutional login

Purchase

Purchase

Downloadable; Printable; Owned
HTML, PDF (105kb)Purchase

To purchase this item please login or register.

Login


- Forgot password?

Recommend to your librarian

Complete and print this form to request this document from your librarian


Marked list


Bookmark & share

Reprints & permissions