Parliament concerned about ineffectual fight against illicit financial flows
Large gaps in enforcement and co-ordination between different government agencies was a source of concern that the fight against illicit financial flows, base erosion and profit shifting was not effective. This emerged during an engagement of three parliamentary committees — finance, trade and industry and mineral resources — with officials of the Treasury, the South African Revenue Service (SARS), the Financial Intelligence Centre (FIC), the Reserve Bank, the Department of Mineral Resources, the South African Police Service (SAPS) and the National Prosecuting Authority (NPA). Finance committee chairman Yunus Carrim said in his introductory remarks that it seemed that the SAPS did not act on cases of suspicious transactions reported to it by the FIC. Even if the SAPS did act, it was not clear that the NPA had the capacity to follow up the cases. "There is no obvious deterrent," Carrim said, noting that parliamentary committees would be playing a greater oversight role over these mat...
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