Tightening international cooperation is among concrete remedial measures proposed by United Kingdom (UK) House of Lords peer and anti-apartheid activist Peter Hain to governments, international law enforcement agencies and corporates, to stamp out the scourge of state capture – a phenomenon which has adversely crippled economies of emerging countries.
Testifying on Monday before Deputy Chief Justice Raymond Zondo at the Commission of Inquiry into State Capture, Hain recommended:
“In order to foster relations between state law enforcement and the financial sector, it is recommended that South Africa establishes a body replicating the UK’s Joint Money Laundering Intelligence Taskforce (JMLIT) within the next 12 months,” Hain said.
“Since its inception, the JMLIT has supported and developed over 500 law enforcement investigations and has directly contributed to over 130 arrests and the seizure or restraint of over £46 million (R879.9 million).
“As is the case for JMLIT, this newly formed body should be comprised of both local and international banks – in recognition that corruption and money laundering can involve the global movement of funds around banking institutions.
“It is further recommended that international banks should be required to share with the South African authorities, copies of their monthly or weekly reports to management relating to their assessment of money-laundering, sanctions and corruption risks within the bank and the effectiveness of the banks’ compliance programme (in their unedited form).”
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