Watchdogs target trusts

STRENUOUS: EFFORTS TO GET OFF GREYLIST RAMP UP AHEAD OF DEADLINE

- Amanda Visser

Entities such as public benefit organisations (PBOs) and non-governmental organisations (NGOs) have never been considered high-risk terrorist financing or money laundering organisations.

However, these organisations and trusts are increasingly being targeted by regulators and government agencies trying to get South Africa off the greylist.

The country must still address substantial issues identified by the global financial watchdog, the Financial Action Task Force (FATF), by February next year.

Happy Shihau, head of compliance at Investec Corporate and Institutional Banking, said the quantities and the flow of funds from donors and entities in these targeted organisations require closer scrutiny.

Pain points

The pain points remain the "know-your-customer" and beneficial ownership register requirements. The requirements are quite onerous - from having to supply valid identification documents to almost asking for a blood sample to make sure you are who you say you are, she said.

"Ultimately the requirement is to know who is coming into your business and who you are providing financial services to.