NO NGOs UNDER INVESTIGATION FOR MONEY LAUNDERING AND TERROR FINANCING SAYS DEPARTMENT OF SOCIAL DEVELOPMENT

• The Department of Social Development has confirmed that no non-profit organisations (NPOs) are being probed for terror funding and money laundering.
• The department recently held a symposium with NPOs and other stakeholders to strengthen consultation mechanisms between the two and to find ways of protecting NPOs from exploitation to fund terrorist organisations.
• At no point during the symposium were any allegations made that NPOs in South Africa are implicated in terrorist financing or money laundering or that the South African authorities are investigating any NPOs for involvement in these activities.

The Department of Social Development has noted attributed statements in recent media reports that 50 South African non-governmental organisations are being probed for terror funding and money laundering.

The department would like to put it on record that there are no non-profit organisations (NPOs) under such investigations.

The department convened a symposium with NPOs and other stakeholders to make the NPO community aware of South Africa’s obligations with regard to the implementation of anti-money laundering and counter-terror financing measures.

The aim of the symposium was to strengthen consultation mechanisms between the government and NPOs and focused on deficiencies in South Africa’s measures to protect NPOs from exploitation to fund terrorist organisations as identified in the 2021 Financial Action Task Force’s (FATF) mutual evaluation.

The FATF reiterated its findings relating to these deficiencies in its 2024 mutual evaluation follow-up report on South Africa.

Delegates were informed about the recently launched NPO terror funding risk assessment that was undertaken to evaluate the nature of potential threats and inherent vulnerabilities that may potentially put NPOs in South Africa at risk of terror financing abuse. (Terrorist financing risk assessment for the non-profit organisation sector: February 2024)

However, at no point during the symposium were any allegations made that NPOs in South Africa are implicated in terrorist financing or money laundering or that the South African authorities are investigating any NPOs for involvement in these activities.