MONEY LAUNDERING
The use of cash The use of cash is very much still prevalent in South Africa and though obviously not always a sign of money laundering , it has been assessed as an indication for high risk of money originating from Money Laundering ( ML ) especially when in large amounts and during cross-border movement . An example of this is individuals insisting to pay for a high value good , such as a motor vehicle , gold or diamond ring , in cash - often this is in one large lump sum or in smaller fractionated amounts to try conceal the large cash payment .
Cash is often used in ML schemes due to the inherent difficulty in ascertaining its true source , its movability and its ability to transfer value into a legitimate asset e . g .: a car , a house , a luxury yacht , a piece of art or jewellery .
How to combat it Cash Threshold Reporting ( CTR ) is required to be undertaken by Accountable Institutions ( AIs ) listed in Schedule 1 of FICA . The monetary threshold for cash reporting is R49 999 and above as a single transaction only and the requirement of Cash Threshold Reporting Aggregation ( CTRA ) has been repealed and is no longer applicable .
This was where aggregated smaller cash deposits appearing somehow linked to each other and exceeding the previous threshold of R24 999 would need to be reported . The FIC Act
SA Real Estate Investor Magazine JUNE / JULY 2023 58