Pubdate: Fri, 05 Sep 2003
Source: Cape Argus (South Africa)
Copyright: 2003 Cape Argus.
Contact:  http://capeargus.co.za/
Details: http://www.mapinc.org/media/2939
Authors: Joseph Aranes, Yunus Kemp

BANK JOINS BID TO HIT MONEY LAUNDERING

A joint public/private initiative is set to turn the screws tighter on 
gangland's high flyers and drug lords who launder their money through 
legitimate business transactions.

Community safety MEC Leonard Ramatlakane announced that Standard Bank has 
agreed to bankroll the training of 25 specialist investigators and 
prosecutors in all aspects of money laundering and the new legislation 
governing financial transactions.

Ramatlakane said the 25 would be drawn from the police, receiver of 
revenue, Scorpions, assets forfeiture unit and national prosecuting authority.

"We are developing and building the capacity of the various agencies and 
will use an integrated approach to fight organised crime and their high 
flying bosses.

"This partnership with Standard Bank is just the beginning. We are looking 
at long-term projects like the bank sponsoring victim support centres and 
adopting police stations."

Anina Borman, Standard Bank's provincial human resources manager, said the 
training was a springboard from which other projects would emanate.

"The training will focus on money laundering and we will look at enhancing 
the skills of investigators and prosecutors," said Borman.

She said it was also an opportunity for Standard Bank to establish stronger 
ties with the police.

"We are also looking at service issues where we can help out 
administratively at police stations, which would enable officers to be free 
to patrol the streets."

She said the public/private partnership was vital as financial institutions 
could be the weakest link in the criminal activity chain if they did not 
equip themselves with the necessary training.

Ramatlakane said in terms of the Financial Intelligence Centre Act there 
was an obligation on businesses to run a thorough background check on where 
monies, especially large sums, came from.

The act was designed to combat money laundering while encouraging banks to 
know their clients.

It requires customers opening new bank accounts to provide additional 
personal information to comply with new anti-money laundering legislation.

It also imposes strict duties on institutions and their employees where 
they encounter incidents of money laundering.

Additional information includes proof of a residential address, a utility 
bill, a bank statement, municipal rates/tax invoice or a Telkom account, 
and no cellphone numbers are allowed.

One of the methods used by criminals to clean dirty money, was to purchase 
immovable property and then sell it again, often at a suspiciously lower price.

Provincial police commissioner Mzwandile Petros said the training was in 
line with police philosophy of not only working harder, but also working 
smarter.

"There is a high drug consumption in the province and this means there are 
large sums of money that comes from this.

"But the high flyers rarely touch drugs, but we know that they are dealing 
(in drugs)."

He said the training meant investigators would look beyond traditional drug 
"routes" in trying to bring down the druglords.

"The money and property is usually linked to the high flyers. If we find 
that somebody is dirty we will bring them down.
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