Chairperson, hon members, I stand before you to present this piece of legislation, that is the Financial Intelligence Centre Amendment Bill. Why this amendment? The Bill seeks to amend the principal Act, namely the Financial Intelligence Centre Act of 2001. The thrust of the Act is to combat money-laundering.
Money-laundering is the process of disguising illegitimate income to make it appear legitimate. In other words, it refers to activities that hide the origins and ownership of money that is earned through criminal means. Money- laundering allows criminals to enjoy their profits without risking the source of income. Examples of illegal activities are illegal arms sales, smuggling, drug trafficking, prostitution, embezzlement, insider-trading, bribery, financing of terrorist activities and computer fraud.
The main objectives of this Bill, therefore, are as follows: To provide an administrative enforcement framework; to enhance supervision of and enforce compliance with the principal Act; to ensure consistency with international standards for regulation, supervision and compliance with anti-money- laundering and counterterrorist financing measures; to adhere to the precedents of the enforcement committee as established in the Securities Services Act and the administrative penalties regime introduced in 2007 under the Pension Funds Act; and to propose a few technical amendments to enhance legal certainty and clarity. The Bill currently before the National Council of Provinces will further entrench the responsibility of supervisory bodies to supervise compliance with the Financial Intelligence Centre Act by expressly adding this to their functions. That will remove any uncertainty that presently exists.
The Bill seeks to ensure that organised crime syndicates do not find a safe haven to hide their illegal and unscrupulously acquired wealth.
The Select Committee on Finance appeals to the National Council of Provinces to support the amendment to this piece of section 75 legislation. Thank you. [Applause.]
Debate concluded
Bill agreed to in accordance with section 75 of the Constitution.