Combating the scourge of financial crime, organized criminality, and corruption in South Africa requires an all-hands-on-deck approach from both the public and private sectors. This was the resounding message from advocate Xolisile Khanyile at a recent Fighting Financial Crime conference hosted by compliance leader DocFox in Johannesburg.
“Everyone has a role to play in this fight,” urged Khanyile, the chair of The Coalition’s Africa chapter, former chair of the Egmont Group, and former Director of South Africa’s Financial Intelligence Unit (FIU). The Financial Action Task Force’s 2019 review highlighted glaring deficiencies in our counter-terrorist financing efforts and risk-based supervision of key sectors. While we have sound legislation, lackluster implementation is crippling its effectiveness.
Khanyile was unsparing in her criticism of Designated Non-Financial Businesses and Professions (DNFBPs) like legal practitioners, real estate firms, and high-value goods dealers. The FATF found that DNFBPs were the worst performers in upholding anti-money laundering and counter-terrorist financing obligations. “We have seen criminals going to lawyers and saying, ‘Buy a house for me’. These are the things we need to stop. Regarding preventative measures, few are doing their job.”
She cited numerous red flags: these gatekeepers need to vigilantly monitor clients paying fees in difficult-to-trace cash, clients claiming to represent third parties, dealings in high-risk foreign jurisdictions or cryptocurrencies, so-called “pig butchering” investment scams, and more. “You must know your customers, their sources of funds, and any risks they pose. Complacency here is unacceptable.”
The FATF similarly expects robust, risk-based supervision of DNFBPs and other vulnerable sectors by regulators like the Financial Intelligence Centre (FIC). This includes sectors such as virtual asset service providers. They want to see regulators and supervisory bodies properly resourced with expertise, powers, and tools to carry out this crucial oversight, Khanyile said. “Criminals are ahead of us, and we need to move faster. We need to work as a collective and unite against financial crime. Working in silos enables them to identify and exploit the weakest links.”
This urgency to disrupt financial crime networks is where innovative regtech platforms like DocFox can be force multipliers. The company’s seamless web application equips DNFBPs and other Accountable Institutions with automated compliance controls and monitoring capabilities far exceeding manual methods.
“Our software provides an intuitive yet incredibly robust solution for meeting all FICA’s ‘know your customer’ requirements head-on,” said Hawken McEwan, Director of Risk & Compliance at DocFox. “Businesses can effortlessly validate customer identities, analyze for high-risk factors, maintain comprehensive audit trails, and instantly surface any potential politically exposed or sanctions-related clients—all through intelligent automation.”
Rather than complicated manual checks that can easily become outdated, DocFox integrates the latest verification and authentication technologies, as well as real-time watchlist screening, into a seamless digital experience. The platform protects companies across industries from unknowingly being exploited by criminals.
“For too long, many businesses have viewed reporting suspicious activities as a futile effort when prosecutions seem lacking,” McEwan acknowledged. “But that apathy just perpetuates the impunity. If we want actual change, it requires collective commitment from both the public and private sectors to do their parts.”
By arming accountable institutions with DocFox’s sophisticated compliance tools and services, they gain vital capability as boots-on-the-ground partners on financial crime’s front lines. Empowered by advanced technology, they can finally implement rigorous FICA controls without disrupting operations. Coupled with enhanced scrutiny and enforcement from regulators, this united public-private offensive can make a big difference.
“The consequences of letting financial criminals metastasise throughout our economy are dire—from corroding business integrity and investor confidence to fueling broader corruption, violence, and lawlessness,” McEwan warns. “Every company has not just a legal but moral obligation to fight aboard this offensive. With DocFox, we’re giving them a powerful new weapon to join the battle.”
