Cross-border money value transfer services (MVTS)
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Individual Reform: Cross-border money value transfer services (MVTS) 2026 - 2027

The draft amendments to the ML/TF control regulations under the FIC Act are still open for public comments, suggesting that more time may pass before they are implemented. The government has invited public feedback on these draft amendments. According to the FATF, action needs to be taken by January 2025. On April 9, 2024, the government proposed that individuals carrying R25,000 or more in cash or bearer negotiable instruments across South Africa’s borders must report this to the Financial Intelligence Centre.

Action taken against unlicensed entities

Summary

Guidance was published by the FIC to assist accountable institutions to adhere to their international funds transfer reporting obligations in terms of FICA and the Money Laundering and Terrorist Financing Control Regulations. This means that financial services providers like banks (and others in the finance industry) are required to report certain information to the FIC when carrying out international transfers. The guidance gives instructions and best practices for institutions to ensure that they fulfil reporting requirements as required by law.

Canvas not supported.

Is it working?

Given that public comments still have to be considered on the draft amendment, there most likely will be more time before amendments are implemented.

Actions

Government published an invite to the public for comments on draft amendments to the ML/TF control regulations in terms of the FIC act. As noted by the FATF, action must be achieved by January 2025.

Are there plans?

On 9 April 2024, government proposed a prescribed threshold of R25,000 requiring reports for cross border movements of cash or bearer negotiable instruments above this amount.

Is it on the agenda?

Government has raised concerns about cross-border MVTS. Since 2013, the AML/CFT division of the SARB has conducted several joint inspections with host country regulators at international operations of South African banks.

Goals

To be effective, reforms on cross border MVTS should reflect improvements to the effectiveness of measures at borders to detect and seize illicit cash flows and identify and address unlicensed cross-border money transfers.

Departments / Govt Institutions

Financial Intelligence Centre (FIC) National Treasury South African Reserve Bank (SARB)

Summary

Guidance was published by the FIC to assist accountable institutions to adhere to their international funds transfer reporting obligations in terms of FICA and the Money Laundering and Terrorist Financing Control Regulations. This means that financial services providers like banks (and others in the finance industry) are required to report certain information to the FIC when carrying out international transfers. The guidance provides instructions and best practice for institutions to ensure that they fulfil reporting requirements as required by law.

Canvas not supported.

Is it working?

Given that public comments still have to be considered on the draft amendment, there most likely will be more time before amendments are implemented. The public comments may take on different dynamics under the new administration of the GNU.

Actions

Government published an invite to the public for comments on draft amendments to the ML/TF control regulations in terms of the FIC act. As noted by the FATF, action must be achieved by January 2025.

Are there plans?

Proposed revisions to the Money Laundering and Terrorist Financing Control (MLTFC) Regulations could compel individuals carrying R25,000 or more in cash or bearer negotiable instruments across SA’s borders to report this to the FIC.

Is it on the agenda?

Government has raised concerns about cross-border MVTS. Since 2013, the AML/CFT division of the SARB has conducted several joint inspections with host country regulators at international operations of South African banks.

Goals

To be effective, reforms on cross-border MVTS should reflect improvements to the effectiveness of measures at borders to detect and seize illicit cash flows and identify and address unlicensed cross-border money transfers.

Departments / Govt Institutions

Financial Intelligence Centre (FIC) National Treasury South African Reserve Bank (SARB)

Summary

Guidance was published by the FIC to assist accountable institutions to adhere to their international funds transfer reporting obligations in terms of FICA and the Money Laundering and Terrorist Financing Control Regulations. This means that financial services providers like banks (and others in the finance industry) are required to report certain information to the FIC when carrying out international transfers. The guidance provides instructions and best practice for institutions to ensure that they fulfil reporting requirements as required by law.

Canvas not supported.

Is it working?

The FATF’s acknowledgment of South Africa’s progress in improving oversight of MVTS signals that the government’s actions are making an impact in this area. Increased regulatory measures and enforcement have been effective in bringing some MVTS operators under compliance. However, for full compliance by February 2025, South Africa will need to demonstrate sustained increases in MVTS-related investigations, particularly targeting unlicensed operators and the misuse of MVTS channels for money laundering or terror financing. Ongoing collaboration with international bodies to monitor cross-border transactions will be essential to continue advancing effectiveness in this area.

Actions

Key action items include enhancing the licensing requirements for money value transfer services (MVTS) providers, ensuring that only registered entities operate in this space, and actively pursuing unlicensed MVTS operators. The government is also implementing stricter reporting and record-keeping requirements for licensed MVTS providers, along with requirements to conduct customer due diligence and report suspicious transactions. Further, South Africa is improving coordination between domestic and international regulatory bodies to detect and disrupt illicit MVTS activities across borders.

Are there plans?

Proposed revisions to the Money Laundering and Terrorist Financing Control (MLTFC) Regulations could compel individuals carrying R25,000 or more in cash or bearer negotiable instruments across SA’s borders to report this to the FIC.

Is it on the agenda?

Government has raised concerns about cross-border MVTS. Since 2013, the AML/CFT division of the SARB has conducted several joint inspections with host country regulators at international operations of South African banks.

Goals

To be effective, reforms on cross-border MVTS should reflect improvements to the effectiveness of measures at borders to detect and seize illicit cash flows and identify and address unlicensed cross-border money transfers.

Departments / Govt Institutions

Financial Intelligence Centre (FIC) National Treasury South African Reserve Bank (SARB)

Summary

Guidance was published by the FIC to assist accountable institutions to adhere to their international funds transfer reporting obligations in terms of FICA and the Money Laundering and Terrorist Financing Control Regulations. This means that financial services providers like banks (and others in the finance industry) are required to report certain information to the FIC when carrying out international transfers. The guidance provides instructions and best practice for institutions to ensure that they fulfil reporting requirements as required by law.

Canvas not supported.

Is it working?

The FATF’s acknowledgment of South Africa’s progress in improving oversight of MVTS signals that the government’s actions are making an impact in this area. Increased regulatory measures and enforcement have been effective in bringing some MVTS operators under compliance. However, for full compliance by February 2025, South Africa will need to demonstrate sustained increases in MVTS-related investigations, particularly targeting unlicensed operators and the misuse of MVTS channels for money laundering or terror financing. Ongoing collaboration with international bodies to monitor cross-border transactions will be essential to continue advancing effectiveness in this area.

Actions

Key action items include enhancing the licensing requirements for money value transfer services (MVTS) providers, ensuring that only registered entities operate in this space, and actively pursuing unlicensed MVTS operators. The government is also implementing stricter reporting and record-keeping requirements for licensed MVTS providers, along with requirements to conduct customer due diligence and report suspicious transactions. Further, South Africa is improving coordination between domestic and international regulatory bodies to detect and disrupt illicit MVTS activities across borders.

Are there plans?

Proposed revisions to the Money Laundering and Terrorist Financing Control (MLTFC) Regulations could compel individuals carrying R25,000 or more in cash or bearer negotiable instruments across SA’s borders to report this to the FIC.

Is it on the agenda?

Government has raised concerns about cross-border MVTS. Since 2013, the AML/CFT division of the SARB has conducted several joint inspections with host country regulators at international operations of South African banks.

Goals

To be effective, reforms on cross-border MVTS should reflect improvements to the effectiveness of measures at borders to detect and seize illicit cash flows and identify and address unlicensed cross-border money transfers.

Departments / Govt Institutions

Financial Intelligence Centre (FIC) National Treasury South African Reserve Bank (SARB)

Summary

Guidance was published by the FIC to assist accountable institutions to adhere to their international funds transfer reporting obligations in terms of FICA and the Money Laundering and Terrorist Financing Control Regulations. This means that financial services providers like banks (and others in the finance industry) are required to report certain information to the FIC when carrying out international transfers. The guidance provides instructions and best practice for institutions to ensure that they fulfil reporting requirements as required by law.

Canvas not supported.

Is it working?

The FATF’s acknowledgment of South Africa’s progress in improving oversight of MVTS signals that the government’s actions are making an impact in this area. Increased regulatory measures and enforcement have been effective in bringing some MVTS operators under compliance. However, for full compliance by February 2025, South Africa will need to demonstrate sustained increases in MVTS-related investigations, particularly targeting unlicensed operators and the misuse of MVTS channels for money laundering or terror financing. Ongoing collaboration with international bodies to monitor cross-border transactions will be essential to continue advancing effectiveness in this area.

Actions

Key action items include enhancing the licensing requirements for money value transfer services (MVTS) providers, ensuring that only registered entities operate in this space, and actively pursuing unlicensed MVTS operators. The government is also implementing stricter reporting and record-keeping requirements for licensed MVTS providers, along with requirements to conduct customer due diligence and report suspicious transactions. Further, South Africa is improving coordination between domestic and international regulatory bodies to detect and disrupt illicit MVTS activities across borders.

Are there plans?

Proposed revisions to the Money Laundering and Terrorist Financing Control (MLTFC) Regulations could compel individuals carrying R25,000 or more in cash or bearer negotiable instruments across SA’s borders to report this to the FIC.

Is it on the agenda?

Government has raised concerns about cross-border MVTS. Since 2013, the AML/CFT division of the SARB has conducted several joint inspections with host country regulators at international operations of South African banks.

Goals

To be effective, reforms on cross-border MVTS should reflect improvements to the effectiveness of measures at borders to detect and seize illicit cash flows and identify and address unlicensed cross-border money transfers.

Departments / Govt Institutions

Financial Intelligence Centre (FIC) National Treasury South African Reserve Bank (SARB)

Summary

Guidance was published by the FIC to assist accountable institutions to adhere to their international funds transfer reporting obligations in terms of FICA and the Money Laundering and Terrorist Financing Control Regulations. This means that financial services providers like banks (and others in the finance industry) are required to report certain information to the FIC when carrying out international transfers. The guidance provides instructions and best practice for institutions to ensure that they fulfil reporting requirements as required by law. COMPLETE: We stopped tracking this specific reform at end-June 2025 as it is complete and in effect. FATF upgraded this item in Feb 2025. MVTS supervision is now risk-based.

Canvas not supported.

Is it working?

The FATF’s acknowledgment of South Africa’s progress in improving oversight of money value transfer services signals that the government’s actions are making an impact in this area. Increased regulatory measures and enforcement have been effective in making some MVTS operators compliant. This was achieved in February 2025 with controls and enforcement in place.

Actions

Key action items include enhancing the licensing requirements for money value transfer services (MVTS) providers, ensuring that only registered entities operate in this space, and actively pursuing unlicensed MVTS operators. The government is also implementing stricter reporting and record-keeping requirements for licensed MVTS providers, along with requirements to conduct customer due diligence and report suspicious transactions. Further, South Africa is improving coordination between domestic and international regulatory bodies to detect and disrupt illicit MVTS activities across borders.

Are there plans?

Proposed revisions to the Money Laundering and Terrorist Financing Control (MLTFC) Regulations could compel individuals carrying R25,000 or more in cash or bearer negotiable instruments across SA’s borders to report this to the FIC.

Is it on the agenda?

Government has raised concerns about cross-border MVTS. Since 2013, the AML/CFT division of the SARB has conducted several joint inspections with host country regulators at international operations of South African banks.

Goals

To be effective, reforms on cross-border MVTS should reflect improvements in the effectiveness of measures at borders to detect and seize illicit cash flows and identify and address unlicensed cross-border money transfers.

Departments / Govt Institutions

Financial Intelligence Centre (FIC) National Treasury South African Reserve Bank (SARB)

Summary

Guidance was published by the FIC to assist accountable institutions to adhere to their international funds transfer reporting obligations in terms of FICA and the Money Laundering and Terrorist Financing Control Regulations. This means that financial services providers like banks (and others in the finance industry) are required to report certain information to the FIC when carrying out international transfers. The guidance provides instructions and best practice for institutions to ensure that they fulfil reporting requirements as required by law. COMPLETE: We stopped tracking this specific reform at end-June 2025 as it is complete and in effect. FATF upgraded this item in Feb 2025. MVTS supervision is now risk-based. The money or value transfer services (MVTS) regime is enforced through licensing, technology-driven audits, and targeted enforcement against unlicensed operators, supporting robust sector compliance and ongoing reduction of legacy risk. Enforcement against unlicensed MVTS entities is ongoing, with continuing upgrades to audit cycles and spot compliance, and plans for legacy case management tracked through 2026.
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Canvas not supported.

Is it working?

The FATF’s acknowledgment of South Africa’s progress in improving oversight of money value transfer services signals that the government’s actions are making an impact in this area. Increased regulatory measures and enforcement have been effective in making some MVTS operators compliant. This was achieved in February 2025 with controls and enforcement in place. Sector risks and enforcement are now closely monitored, with compliance upgrades scheduled for future cycles.

Actions

Key action items include enhancing the licensing requirements for money value transfer services (MVTS) providers, ensuring that only registered entities operate in this space, and actively pursuing unlicensed MVTS operators. The government is also implementing stricter reporting and record-keeping requirements for licensed MVTS providers, along with requirements to conduct customer due diligence and report suspicious transactions. Further, South Africa is improving coordination between domestic and international regulatory bodies to detect and disrupt illicit MVTS activities across borders. Legacy risk management and active enforcement are delivering compliance, with periodic reporting maintaining sector transparency.

Are there plans?

Proposed revisions to the Money Laundering and Terrorist Financing Control (MLTFC) Regulations could compel individuals carrying R25,000 or more in cash or bearer negotiable instruments across SA’s borders to report this to the FIC. Quarterly audits, enforcement tech refreshes and onboarding/ risk review cycles are scheduled annually, as mapped by SARB and FIC.

Is it on the agenda?

Government has raised concerns about cross-border MVTS. Since 2013, the AML/CFT division of the SARB has conducted several joint inspections with host country regulators at international operations of South African banks. SARB/FIC compliance is a standing agenda item, with deliverables reviewed by Cabinet and sector stakeholders in quarterly and annual meetings.

Goals

To be effective, reforms on cross-border MVTS should reflect improvements in the effectiveness of measures at borders to detect and seize illicit cash flows and identify and address unlicensed cross-border money transfers.

Departments / Govt Institutions

Financial Intelligence Centre (FIC) National Treasury South African Reserve Bank (SARB)

Summary

Guidance was published by the FIC to assist accountable institutions to adhere to their international funds transfer reporting obligations in terms of FICA and the Money Laundering and Terrorist Financing Control Regulations. This means that financial services providers like banks (and others in the finance industry) are required to report certain information to the FIC when carrying out international transfers. The guidance provides instructions and best practice for institutions to ensure that they fulfil reporting requirements as required by law. COMPLETE: We stopped tracking this specific reform at end-June 2025 as it is complete and in effect. FATF upgraded this item in Feb 2025. MVTS supervision is now risk-based. The money or value transfer services (MVTS) regime is enforced through licensing, technology-driven audits, and targeted enforcement against unlicensed operators, supporting robust sector compliance and ongoing reduction of legacy risk. Enforcement against unlicensed MVTS entities is ongoing, with continuing upgrades to audit cycles and spot compliance, and plans for legacy case management tracked through 2026.

Canvas not supported.

Is it working?

The FATF’s acknowledgment of South Africa’s progress in improving oversight of money value transfer services signals that the government’s actions are making an impact in this area. Increased regulatory measures and enforcement have been effective in making some MVTS operators compliant. This was achieved in February 2025 with controls and enforcement in place. Sector risks and enforcement are now closely monitored, with compliance upgrades scheduled for future cycles.

Actions

Key action items include enhancing the licensing requirements for money value transfer services (MVTS) providers, ensuring that only registered entities operate in this space, and actively pursuing unlicensed MVTS operators. The government is also implementing stricter reporting and record-keeping requirements for licensed MVTS providers, along with requirements to conduct customer due diligence and report suspicious transactions. Further, South Africa is improving coordination between domestic and international regulatory bodies to detect and disrupt illicit MVTS activities across borders. Legacy risk management and active enforcement are delivering compliance, with periodic reporting maintaining sector transparency.

Are there plans?

Proposed revisions to the Money Laundering and Terrorist Financing Control (MLTFC) Regulations could compel individuals carrying R25,000 or more in cash or bearer negotiable instruments across SA’s borders to report this to the FIC. Quarterly audits, enforcement tech refreshes and onboarding/ risk review cycles are scheduled annually, as mapped by SARB and FIC.

Is it on the agenda?

Government has raised concerns about cross-border MVTS. Since 2013, the AML/CFT division of the SARB has conducted several joint inspections with host country regulators at international operations of South African banks. SARB/FIC compliance is a standing agenda item, with deliverables reviewed by Cabinet and sector stakeholders in quarterly and annual meetings.

Goals

To be effective, reforms on cross-border MVTS should reflect improvements in the effectiveness of measures at borders to detect and seize illicit cash flows and identify and address unlicensed cross-border money transfers.

Departments / Govt Institutions

Financial Intelligence Centre (FIC) National Treasury South African Reserve Bank (SARB)

Summary

Guidance was published by the FIC to assist accountable institutions to adhere to their international funds transfer reporting obligations in terms of FICA and the Money Laundering and Terrorist Financing Control Regulations. This means that financial services providers like banks (and others in the finance industry) are required to report certain information to the FIC when carrying out international transfers. The guidance provides instructions and best practice for institutions to ensure that they fulfil reporting requirements as required by law. COMPLETE: We stopped tracking this specific reform at end-June 2025 as it is complete and in effect. FATF upgraded this item in Feb 2025. MVTS supervision is now risk-based. The money or value transfer services (MVTS) regime is enforced through licensing, technology-driven audits, and targeted enforcement against unlicensed operators, supporting robust sector compliance and ongoing reduction of legacy risk. Enforcement against unlicensed MVTS entities is ongoing, with continuing upgrades to audit cycles and spot compliance, and plans for legacy case management tracked through 2026.

Canvas not supported.

Is it working?

The FATF’s acknowledgment of South Africa’s progress in improving oversight of money value transfer services signals that the government’s actions are making an impact in this area. Increased regulatory measures and enforcement have been effective in making some MVTS operators compliant. This was achieved in February 2025 with controls and enforcement in place. Sector risks and enforcement are now closely monitored, with compliance upgrades scheduled for future cycles.

Actions

Key action items include enhancing the licensing requirements for money value transfer services (MVTS) providers, ensuring that only registered entities operate in this space, and actively pursuing unlicensed MVTS operators. The government is also implementing stricter reporting and record-keeping requirements for licensed MVTS providers, along with requirements to conduct customer due diligence and report suspicious transactions. Further, South Africa is improving coordination between domestic and international regulatory bodies to detect and disrupt illicit MVTS activities across borders. Legacy risk management and active enforcement are delivering compliance, with periodic reporting maintaining sector transparency.

Are there plans?

Proposed revisions to the Money Laundering and Terrorist Financing Control (MLTFC) Regulations could compel individuals carrying R25,000 or more in cash or bearer negotiable instruments across SA’s borders to report this to the FIC. Quarterly audits, enforcement tech refreshes and onboarding/ risk review cycles are scheduled annually, as mapped by SARB and FIC.

Is it on the agenda?

Government has raised concerns about cross-border MVTS. Since 2013, the AML/CFT division of the SARB has conducted several joint inspections with host country regulators at international operations of South African banks. SARB/FIC compliance is a standing agenda item, with deliverables reviewed by Cabinet and sector stakeholders in quarterly and annual meetings.

Goals

To be effective, reforms on cross-border MVTS should reflect improvements in the effectiveness of measures at borders to detect and seize illicit cash flows and identify and address unlicensed cross-border money transfers.

Departments / Govt Institutions

Financial Intelligence Centre (FIC) National Treasury South African Reserve Bank (SARB)

Analyst: Tinashe Kambadza
Status: completed
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