Customer due diligence as a countermeasure against money laundering in South Africa

Abstract

The purpose of this research is to discuss customer due diligence as a countermeasure against money laundering in South Africa. After setting out the meaning of and background to money laundering as financial crime, the discussion considers various anti-money laundering initiatives, such as South African statutes and international best practice. The latter serves as foundation to consider customer due diligence more closely, including an explanation of the risk-based approach and the manner in which customer due diligence is conducted. Conclusions are then drawn regarding the importance of customer due diligence, along with certain recommendations.