Summary
Government has been demonstrating a commitment to enhancing its risk assessment of Designated Non-Financial Businesses and Professionals (DNFBPs) to combat money laundering and terrorist financing effectively. The government has adopted a proactive approach to combating financial crime by continuously improving its understanding of risks within DNFBP sectors and implementing measures to mitigate them effectively.
View DetailsIs it working?
The FATF’s recent upgrades indicate that the risk-based approach towards DNFBP supervision is yielding positive results, as South Africa is considered to have largely addressed several AML/CFT compliance requirements. The improvements in DNFBP oversight suggest that South Africa’s plans are effectively increasing compliance and risk awareness within these sectors. However, to maintain progress, DNFBPs will need continued regulatory guidance and enforcement to ensure sustained compliance through February 2025 and beyond. A key challenge remains to fully implement sanctions for non-compliance within DNFBPs, which the FATF emphasised as a priority for South Africa’s final compliance efforts.
Actions
South Africa has implemented risk-based supervision for designated non-financial businesses and professions (DNFBPs), focusing on assessing and managing the specific risks posed by various professions within this sector. Plans include setting up a regulatory framework that mandates DNFBPs to comply with AML/CFT requirements, such as customer due diligence, suspicious transaction reporting and record-keeping. The government is also investing in DNFBP training programmes to increase awareness of AML/CFT responsibilities and develop best practices for identifying and reporting suspicious activities effectively.
Are there plans?
There are three key plans. 1) Implementing and keeping up-to-date supervisory risk assessment tools identifying high-risk DNFBPs as a basis for risk-based supervision. 2) Conducting inspections on a risk-sensitive basis of high-risk DNFBPs. 3) Conducting training and awareness programmes on their AML/CFT obligations, mainly regarding filing and submitting STRs filed in line with risks.
Is it on the agenda?
Yes, the government started raising concerns around improving risk assessment of DNFBPs in 2017-18 to align with global standards and practices. This approach has included the following initiatives: conducting comprehensive risk assessments of DNFBP sectors to identify vulnerabilities and emerging threats; strengthening risk assessment methodologies and frameworks to reflect evolving risks and international best practice; collaborating with industry stakeholders, regulatory bodies, and international partners to gather insights and expertise; enhancing data collection and analysis capabilities to support evidence-based risk assessments; implementing some of the recommended targeted measures and regulatory reforms based on the findings of risk assessments to mitigate identified risks effectively; monitoring and evaluating the effectiveness of implemented measures and making necessary adjustments to enhance effectiveness.
Goals
Smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
Summary
Government has been demonstrating a commitment to enhancing its risk assessment of Designated Non-Financial Businesses and Professionals (DNFBPs) to combat money laundering and terrorist financing effectively. The government has adopted a proactive approach to combating financial crime by continuously improving its understanding of risks within DNFBP sectors and implementing measures to mitigate them effectively. COMPLETE: We stopped tracking this specific reform at end-June 2025 as it is complete and in effect.
View DetailsIs it working?
The FATF’s recent upgrades indicate that the risk-based approach towards Designated Non-Financial Businesses and Professions supervision is yielding positive results, as South Africa is considered to have largely addressed several AML/CFT compliance requirements. The improvements in DNFBP oversight suggest that South Africa’s plans are effectively increasing compliance and risk awareness within these sectors. This was achieved in February 2025 with sectoral supervisions in place with guidelines and increased inspections.
Actions
South Africa has implemented risk-based supervision for designated non-financial businesses and professions (DNFBPs), focusing on assessing and managing the specific risks posed by various professions within this sector. Plans include setting up a regulatory framework that mandates DNFBPs to comply with AML/CFT requirements, such as customer due diligence, suspicious transaction reporting and record-keeping. The government is also investing in DNFBP training programmes to increase awareness of AML/CFT responsibilities and develop best practices for identifying and reporting suspicious activities effectively. The approach has included the following initiatives: conducting comprehensive risk assessments of DNFBP sectors to identify vulnerabilities and emerging threats; strengthening risk assessment methodologies and frameworks to reflect evolving risks and international best practice; collaborating with industry stakeholders, regulatory bodies and international partners to gather insights and expertise; enhancing data collection and analysis capabilities to support evidence-based risk assessments; implementing some of the recommended targeted measures and regulatory reforms based on the findings of risk assessments to mitigate identified risks effectively; monitoring and evaluating the effectiveness of implemented measures and making necessary adjustments to enhance effectiveness.
Are there plans?
There are three key plans. 1) Implementing and keeping up-to-date supervisory risk assessment tools identifying high-risk DNFBPs as a basis for risk-based supervision. 2) Conducting inspections on a risk-sensitive basis of high-risk DNFBPs. 3) Conducting training and awareness programmes on their AML/CFT obligations, mainly regarding filing and submitting STRs filed in line with risks.
Is it on the agenda?
Yes, the government started raising concerns around improving risk assessment of DNFBPs in 2017-18 to align with global standards and practices.
Goals
The aim is to ensure that smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
Summary
Analytical tools for DNFBP onboarding remain in progress, with next update expected 31 October 2025, targeting sectors with onboarding gaps and complex risk profiles.
Is it working?
Compliance advances are strong but challenges remain for complex and newly regulated DNFBP sectors where onboarding and categorisation require tailored risk responses.
Actions
FSCA and FIC jointly lead onboarding, workshops and audit cycles to target gaps and report sectoral risk.
Are there plans?
The plans specify annual updates to analytics platforms, onboarding protocols and compliance refresh cycles, including guidance for newly regulated DNFBPs.
Is it on the agenda?
The sector is on both FIC and Treasury strategic agendas for ongoing supervision, with Cabinet minutes affirming periodic risk checks as a mandatory sectoral deliverable.
Goals
Smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
Summary
Government has been demonstrating a commitment to enhancing its risk assessment of Designated Non-Financial Businesses and Professionals (DNFBPs) to combat money laundering and terrorist financing effectively. The government has adopted a proactive approach to combating financial crime by continuously improving its understanding of risks within DNFBP sectors and implementing measures to mitigate them effectively. COMPLETE: We stopped tracking this specific reform at end-June 2025 as it is complete and in effect.
View DetailsIs it working?
The FATF’s recent upgrades indicate that the risk-based approach towards Designated Non-Financial Businesses and Professions supervision is yielding positive results, as South Africa is considered to have largely addressed several AML/CFT compliance requirements. The improvements in DNFBP oversight suggest that South Africa’s plans are effectively increasing compliance and risk awareness within these sectors. This was achieved in February 2025 with sectoral supervisions in place with guidelines and increased inspections.
Actions
South Africa has implemented risk-based supervision for designated non-financial businesses and professions (DNFBPs), focusing on assessing and managing the specific risks posed by various professions within this sector. Plans include setting up a regulatory framework that mandates DNFBPs to comply with AML/CFT requirements, such as customer due diligence, suspicious transaction reporting and record-keeping. The government is also investing in DNFBP training programmes to increase awareness of AML/CFT responsibilities and develop best practices for identifying and reporting suspicious activities effectively. The approach has included the following initiatives: conducting comprehensive risk assessments of DNFBP sectors to identify vulnerabilities and emerging threats; strengthening risk assessment methodologies and frameworks to reflect evolving risks and international best practice; collaborating with industry stakeholders, regulatory bodies and international partners to gather insights and expertise; enhancing data collection and analysis capabilities to support evidence-based risk assessments; implementing some of the recommended targeted measures and regulatory reforms based on the findings of risk assessments to mitigate identified risks effectively; monitoring and evaluating the effectiveness of implemented measures and making necessary adjustments to enhance effectiveness.
Are there plans?
There are three key plans. 1) Implementing and keeping up-to-date supervisory risk assessment tools identifying high-risk DNFBPs as a basis for risk-based supervision. 2) Conducting inspections on a risk-sensitive basis of high-risk DNFBPs. 3) Conducting training and awareness programmes on their AML/CFT obligations, mainly regarding filing and submitting STRs filed in line with risks.
Is it on the agenda?
Yes, the government started raising concerns around improving risk assessment of DNFBPs in 2017-18 to align with global standards and practices.
Goals
The aim is to ensure that smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
No data available for the deliverable: Improve risk-based categorisation and supervision
No data available for the deliverable: Improve risk-based categorisation and supervision
Summary
Government has been demonstrating a commitment to enhancing its risk assessment of Designated Non-Financial Businesses and Professionals (DNFBPs) to combat money laundering and terrorist financing effectively. The government has adopted a proactive approach to combating financial crime by continuously improving its understanding of risks within DNFBP sectors and implementing measures to mitigate them effectively.
View DetailsIs it working?
The FATF’s recent upgrades indicate that the risk-based approach towards DNFBP supervision is yielding positive results, as South Africa is considered to have largely addressed several AML/CFT compliance requirements. The improvements in DNFBP oversight suggest that South Africa’s plans are effectively increasing compliance and risk awareness within these sectors. However, to maintain progress, DNFBPs will need continued regulatory guidance and enforcement to ensure sustained compliance through February 2025 and beyond. A key challenge remains to fully implement sanctions for non-compliance within DNFBPs, which the FATF emphasised as a priority for South Africa’s final compliance efforts.
Actions
South Africa has implemented risk-based supervision for designated non-financial businesses and professions (DNFBPs), focusing on assessing and managing the specific risks posed by various professions within this sector. Plans include setting up a regulatory framework that mandates DNFBPs to comply with AML/CFT requirements, such as customer due diligence, suspicious transaction reporting and record-keeping. The government is also investing in DNFBP training programmes to increase awareness of AML/CFT responsibilities and develop best practices for identifying and reporting suspicious activities effectively.
Are there plans?
There are three key plans. 1) Implementing and keeping up-to-date supervisory risk assessment tools identifying high-risk DNFBPs as a basis for risk-based supervision. 2) Conducting inspections on a risk-sensitive basis of high-risk DNFBPs. 3) Conducting training and awareness programmes on their AML/CFT obligations, mainly regarding filing and submitting STRs filed in line with risks.
Is it on the agenda?
Yes, the government started raising concerns around improving risk assessment of DNFBPs in 2017-18 to align with global standards and practices. This approach has included the following initiatives: conducting comprehensive risk assessments of DNFBP sectors to identify vulnerabilities and emerging threats; strengthening risk assessment methodologies and frameworks to reflect evolving risks and international best practice; collaborating with industry stakeholders, regulatory bodies, and international partners to gather insights and expertise; enhancing data collection and analysis capabilities to support evidence-based risk assessments; implementing some of the recommended targeted measures and regulatory reforms based on the findings of risk assessments to mitigate identified risks effectively; monitoring and evaluating the effectiveness of implemented measures and making necessary adjustments to enhance effectiveness.
Goals
Smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
Summary
Government has been demonstrating a commitment to enhancing its risk assessment of Designated Non-Financial Businesses and Professionals (DNFBPs) to combat money laundering and terrorist financing effectively. The government has adopted a proactive approach to combating financial crime by continuously improving its understanding of risks within DNFBP sectors and implementing measures to mitigate them effectively.
View DetailsIs it working?
The FATF’s recent upgrades indicate that the risk-based approach towards DNFBP supervision is yielding positive results, as South Africa is considered to have largely addressed several AML/CFT compliance requirements. The improvements in DNFBP oversight suggest that South Africa’s plans are effectively increasing compliance and risk awareness within these sectors. However, to maintain progress, DNFBPs will need continued regulatory guidance and enforcement to ensure sustained compliance through February 2025 and beyond. A key challenge remains to fully implement sanctions for non-compliance within DNFBPs, which the FATF emphasised as a priority for South Africa’s final compliance efforts.
Actions
South Africa has implemented risk-based supervision for designated non-financial businesses and professions (DNFBPs), focusing on assessing and managing the specific risks posed by various professions within this sector. Plans include setting up a regulatory framework that mandates DNFBPs to comply with AML/CFT requirements, such as customer due diligence, suspicious transaction reporting and record-keeping. The government is also investing in DNFBP training programmes to increase awareness of AML/CFT responsibilities and develop best practices for identifying and reporting suspicious activities effectively.
Are there plans?
There are three key plans. 1) Implementing and keeping up-to-date supervisory risk assessment tools identifying high-risk DNFBPs as a basis for risk-based supervision. 2) Conducting inspections on a risk-sensitive basis of high-risk DNFBPs. 3) Conducting training and awareness programmes on their AML/CFT obligations, mainly regarding filing and submitting STRs filed in line with risks.
Is it on the agenda?
Yes, the government started raising concerns around improving risk assessment of DNFBPs in 2017-18 to align with global standards and practices. This approach has included the following initiatives: conducting comprehensive risk assessments of DNFBP sectors to identify vulnerabilities and emerging threats; strengthening risk assessment methodologies and frameworks to reflect evolving risks and international best practice; collaborating with industry stakeholders, regulatory bodies, and international partners to gather insights and expertise; enhancing data collection and analysis capabilities to support evidence-based risk assessments; implementing some of the recommended targeted measures and regulatory reforms based on the findings of risk assessments to mitigate identified risks effectively; monitoring and evaluating the effectiveness of implemented measures and making necessary adjustments to enhance effectiveness.
Goals
Smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
Summary
Government has been demonstrating a commitment to enhancing its risk assessment of Designated Non-Financial Businesses and Professionals (DNFBPs) to combat money laundering and terrorist financing effectively. The government has adopted a proactive approach to combating financial crime by continuously improving its understanding of risks within DNFBP sectors and implementing measures to mitigate them effectively.
View DetailsIs it working?
The FATF’s recent upgrades indicate that the risk-based approach towards DNFBP supervision is yielding positive results, as South Africa is considered to have largely addressed several AML/CFT compliance requirements. The improvements in DNFBP oversight suggest that South Africa’s plans are effectively increasing compliance and risk awareness within these sectors. However, to maintain progress, DNFBPs will need continued regulatory guidance and enforcement to ensure sustained compliance through February 2025 and beyond. A key challenge remains to fully implement sanctions for non-compliance within DNFBPs, which the FATF emphasised as a priority for South Africa’s final compliance efforts.
Actions
South Africa has implemented risk-based supervision for designated non-financial businesses and professions (DNFBPs), focusing on assessing and managing the specific risks posed by various professions within this sector. Plans include setting up a regulatory framework that mandates DNFBPs to comply with AML/CFT requirements, such as customer due diligence, suspicious transaction reporting and record-keeping. The government is also investing in DNFBP training programmes to increase awareness of AML/CFT responsibilities and develop best practices for identifying and reporting suspicious activities effectively.
Are there plans?
There are three key plans. 1) Implementing and keeping up-to-date supervisory risk assessment tools identifying high-risk DNFBPs as a basis for risk-based supervision. 2) Conducting inspections on a risk-sensitive basis of high-risk DNFBPs. 3) Conducting training and awareness programmes on their AML/CFT obligations, mainly regarding filing and submitting STRs filed in line with risks.
Is it on the agenda?
Yes, the government started raising concerns around improving risk assessment of DNFBPs in 2017-18 to align with global standards and practices. This approach has included the following initiatives: conducting comprehensive risk assessments of DNFBP sectors to identify vulnerabilities and emerging threats; strengthening risk assessment methodologies and frameworks to reflect evolving risks and international best practice; collaborating with industry stakeholders, regulatory bodies, and international partners to gather insights and expertise; enhancing data collection and analysis capabilities to support evidence-based risk assessments; implementing some of the recommended targeted measures and regulatory reforms based on the findings of risk assessments to mitigate identified risks effectively; monitoring and evaluating the effectiveness of implemented measures and making necessary adjustments to enhance effectiveness.
Goals
Smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
Summary
Government has been demonstrating a commitment to enhancing its risk assessment of Designated Non-Financial Businesses and Professionals (DNFBPs) to combat money laundering and terrorist financing effectively. The government has adopted a proactive approach to combating financial crime by continuously improving its understanding of risks within DNFBP sectors and implementing measures to mitigate them effectively. COMPLETE: We stopped tracking this specific reform at end-June 2025 as it is complete and in effect.
View DetailsIs it working?
The FATF’s recent upgrades indicate that the risk-based approach towards Designated Non-Financial Businesses and Professions supervision is yielding positive results, as South Africa is considered to have largely addressed several AML/CFT compliance requirements. The improvements in DNFBP oversight suggest that South Africa’s plans are effectively increasing compliance and risk awareness within these sectors. This was achieved in February 2025 with sectoral supervisions in place with guidelines and increased inspections.
Actions
South Africa has implemented risk-based supervision for designated non-financial businesses and professions (DNFBPs), focusing on assessing and managing the specific risks posed by various professions within this sector. Plans include setting up a regulatory framework that mandates DNFBPs to comply with AML/CFT requirements, such as customer due diligence, suspicious transaction reporting and record-keeping. The government is also investing in DNFBP training programmes to increase awareness of AML/CFT responsibilities and develop best practices for identifying and reporting suspicious activities effectively. The approach has included the following initiatives: conducting comprehensive risk assessments of DNFBP sectors to identify vulnerabilities and emerging threats; strengthening risk assessment methodologies and frameworks to reflect evolving risks and international best practice; collaborating with industry stakeholders, regulatory bodies and international partners to gather insights and expertise; enhancing data collection and analysis capabilities to support evidence-based risk assessments; implementing some of the recommended targeted measures and regulatory reforms based on the findings of risk assessments to mitigate identified risks effectively; monitoring and evaluating the effectiveness of implemented measures and making necessary adjustments to enhance effectiveness.
Are there plans?
There are three key plans. 1) Implementing and keeping up-to-date supervisory risk assessment tools identifying high-risk DNFBPs as a basis for risk-based supervision. 2) Conducting inspections on a risk-sensitive basis of high-risk DNFBPs. 3) Conducting training and awareness programmes on their AML/CFT obligations, mainly regarding filing and submitting STRs filed in line with risks.
Is it on the agenda?
Yes, the government started raising concerns around improving risk assessment of DNFBPs in 2017-18 to align with global standards and practices.
Goals
The aim is to ensure that smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
Summary
Analytical tools for DNFBP onboarding remain in progress, with next update expected 31 October 2025, targeting sectors with onboarding gaps and complex risk profiles.
Is it working?
Compliance advances are strong but challenges remain for complex and newly regulated DNFBP sectors where onboarding and categorisation require tailored risk responses.
Actions
FSCA and FIC jointly lead onboarding, workshops and audit cycles to target gaps and report sectoral risk.
Are there plans?
The plans specify annual updates to analytics platforms, onboarding protocols and compliance refresh cycles, including guidance for newly regulated DNFBPs.
Is it on the agenda?
The sector is on both FIC and Treasury strategic agendas for ongoing supervision, with Cabinet minutes affirming periodic risk checks as a mandatory sectoral deliverable.
Goals
Smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
Summary
Government has been demonstrating a commitment to enhancing its risk assessment of Designated Non-Financial Businesses and Professionals (DNFBPs) to combat money laundering and terrorist financing effectively. The government has adopted a proactive approach to combating financial crime by continuously improving its understanding of risks within DNFBP sectors and implementing measures to mitigate them effectively. COMPLETE: We stopped tracking this specific reform at end-June 2025 as it is complete and in effect.
View DetailsIs it working?
The FATF’s recent upgrades indicate that the risk-based approach towards Designated Non-Financial Businesses and Professions supervision is yielding positive results, as South Africa is considered to have largely addressed several AML/CFT compliance requirements. The improvements in DNFBP oversight suggest that South Africa’s plans are effectively increasing compliance and risk awareness within these sectors. This was achieved in February 2025 with sectoral supervisions in place with guidelines and increased inspections.
Actions
South Africa has implemented risk-based supervision for designated non-financial businesses and professions (DNFBPs), focusing on assessing and managing the specific risks posed by various professions within this sector. Plans include setting up a regulatory framework that mandates DNFBPs to comply with AML/CFT requirements, such as customer due diligence, suspicious transaction reporting and record-keeping. The government is also investing in DNFBP training programmes to increase awareness of AML/CFT responsibilities and develop best practices for identifying and reporting suspicious activities effectively. The approach has included the following initiatives: conducting comprehensive risk assessments of DNFBP sectors to identify vulnerabilities and emerging threats; strengthening risk assessment methodologies and frameworks to reflect evolving risks and international best practice; collaborating with industry stakeholders, regulatory bodies and international partners to gather insights and expertise; enhancing data collection and analysis capabilities to support evidence-based risk assessments; implementing some of the recommended targeted measures and regulatory reforms based on the findings of risk assessments to mitigate identified risks effectively; monitoring and evaluating the effectiveness of implemented measures and making necessary adjustments to enhance effectiveness.
Are there plans?
There are three key plans. 1) Implementing and keeping up-to-date supervisory risk assessment tools identifying high-risk DNFBPs as a basis for risk-based supervision. 2) Conducting inspections on a risk-sensitive basis of high-risk DNFBPs. 3) Conducting training and awareness programmes on their AML/CFT obligations, mainly regarding filing and submitting STRs filed in line with risks.
Is it on the agenda?
Yes, the government started raising concerns around improving risk assessment of DNFBPs in 2017-18 to align with global standards and practices.
Goals
The aim is to ensure that smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
No data available for the deliverable: Improve risk-based categorisation and supervision
No data available for the deliverable: Improve risk-based categorisation and supervision
Summary
Government has been demonstrating a commitment to enhancing its risk assessment of Designated Non-Financial Businesses and Professionals (DNFBPs) to combat money laundering and terrorist financing effectively. The government has adopted a proactive approach to combating financial crime by continuously improving its understanding of risks within DNFBP sectors and implementing measures to mitigate them effectively.
View DetailsIs it working?
The FATF’s recent upgrades indicate that the risk-based approach towards DNFBP supervision is yielding positive results, as South Africa is considered to have largely addressed several AML/CFT compliance requirements. The improvements in DNFBP oversight suggest that South Africa’s plans are effectively increasing compliance and risk awareness within these sectors. However, to maintain progress, DNFBPs will need continued regulatory guidance and enforcement to ensure sustained compliance through February 2025 and beyond. A key challenge remains to fully implement sanctions for non-compliance within DNFBPs, which the FATF emphasised as a priority for South Africa’s final compliance efforts.
Actions
South Africa has implemented risk-based supervision for designated non-financial businesses and professions (DNFBPs), focusing on assessing and managing the specific risks posed by various professions within this sector. Plans include setting up a regulatory framework that mandates DNFBPs to comply with AML/CFT requirements, such as customer due diligence, suspicious transaction reporting and record-keeping. The government is also investing in DNFBP training programmes to increase awareness of AML/CFT responsibilities and develop best practices for identifying and reporting suspicious activities effectively.
Are there plans?
There are three key plans. 1) Implementing and keeping up-to-date supervisory risk assessment tools identifying high-risk DNFBPs as a basis for risk-based supervision. 2) Conducting inspections on a risk-sensitive basis of high-risk DNFBPs. 3) Conducting training and awareness programmes on their AML/CFT obligations, mainly regarding filing and submitting STRs filed in line with risks.
Is it on the agenda?
Yes, the government started raising concerns around improving risk assessment of DNFBPs in 2017-18 to align with global standards and practices. This approach has included the following initiatives: conducting comprehensive risk assessments of DNFBP sectors to identify vulnerabilities and emerging threats; strengthening risk assessment methodologies and frameworks to reflect evolving risks and international best practice; collaborating with industry stakeholders, regulatory bodies, and international partners to gather insights and expertise; enhancing data collection and analysis capabilities to support evidence-based risk assessments; implementing some of the recommended targeted measures and regulatory reforms based on the findings of risk assessments to mitigate identified risks effectively; monitoring and evaluating the effectiveness of implemented measures and making necessary adjustments to enhance effectiveness.
Goals
Smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions
Summary
Government has been demonstrating a commitment to enhancing its risk assessment of Designated Non-Financial Businesses and Professionals (DNFBPs) to combat money laundering and terrorist financing effectively. The government has adopted a proactive approach to combating financial crime by continuously improving its understanding of risks within DNFBP sectors and implementing measures to mitigate them effectively.
View DetailsIs it working?
The FATF’s recent upgrades indicate that the risk-based approach towards DNFBP supervision is yielding positive results, as South Africa is considered to have largely addressed several AML/CFT compliance requirements. The improvements in DNFBP oversight suggest that South Africa’s plans are effectively increasing compliance and risk awareness within these sectors. However, to maintain progress, DNFBPs will need continued regulatory guidance and enforcement to ensure sustained compliance through February 2025 and beyond. A key challenge remains to fully implement sanctions for non-compliance within DNFBPs, which the FATF emphasised as a priority for South Africa’s final compliance efforts.
Actions
South Africa has implemented risk-based supervision for designated non-financial businesses and professions (DNFBPs), focusing on assessing and managing the specific risks posed by various professions within this sector. Plans include setting up a regulatory framework that mandates DNFBPs to comply with AML/CFT requirements, such as customer due diligence, suspicious transaction reporting and record-keeping. The government is also investing in DNFBP training programmes to increase awareness of AML/CFT responsibilities and develop best practices for identifying and reporting suspicious activities effectively.
Are there plans?
There are three key plans. 1) Implementing and keeping up-to-date supervisory risk assessment tools identifying high-risk DNFBPs as a basis for risk-based supervision. 2) Conducting inspections on a risk-sensitive basis of high-risk DNFBPs. 3) Conducting training and awareness programmes on their AML/CFT obligations, mainly regarding filing and submitting STRs filed in line with risks.
Is it on the agenda?
Yes, the government started raising concerns around improving risk assessment of DNFBPs in 2017-18 to align with global standards and practices. This approach has included the following initiatives: conducting comprehensive risk assessments of DNFBP sectors to identify vulnerabilities and emerging threats; strengthening risk assessment methodologies and frameworks to reflect evolving risks and international best practice; collaborating with industry stakeholders, regulatory bodies, and international partners to gather insights and expertise; enhancing data collection and analysis capabilities to support evidence-based risk assessments; implementing some of the recommended targeted measures and regulatory reforms based on the findings of risk assessments to mitigate identified risks effectively; monitoring and evaluating the effectiveness of implemented measures and making necessary adjustments to enhance effectiveness.
Goals
Smaller financial institutions and designated non-financial businesses and professions (DNFBPs) must be able to both identify and understand their money laundering risks. This requires the enablement of specific mechanisms to allow for sharing of risk assessments between FIs and DNFBPs and ultimately, sectoral risk assessments of all DNFBPs must be published on the FIC website.
Departments / Govt Institutions