Weak anti-money laundering legislation has hampered the South Africa’s government challenge to financial crime. Finance minister Trevor Manuel said that his government will introduce far-reaching changes to anti-money laundering law to toughen up its current regime. The Financial Intelligence Centre, created by parliament in November 2001, will be given extra powers. The centre’s own monitoring powers, enables it to conduct inspections, especially in sectors where there is no professional or industry supervisory body. The motor retail and the legal sectors were cited by Mr Manuel as typical unregulated sectors and therefore could, in future, face direct inquiries from the centre. Mr Manuel said: “My intention is to introduce into parliament this year a first round of amendments to the FIC Act to remedy this situation”. The amendments will seek to make explicit the roles and responsibilities of the various supervisory bodies, as well as give the centre responsibilities where there is no supervision. Mr Manuel explained that the way in which the act is presently formulated does not provide either the designated supervisory bodies or the centre “express provisions to enable administrative enforcement of the act”. This has undermined efforts, he said, to administer the act properly. It has also limited the effectiveness of the anti-money laundering and financing of terrorism regime, especially in the areas of compliance and enforcement. The draft amendment bill will crack down on industry supervisory bodies. It will underscore the obligation of these bodies to supervise compliance with the FIC Act. “This will remove any uncertainty that presently exists,” Mr Manuel explained. “It will oblige supervisory bodies to include supervision of compliance with the act in their objectives and in the structuring of their functions. It will also empower them with particular powers in order to assist them in the carrying out of their supervisory functions – for example, to inspect the affairs of accountable institutions.” The amendments will also enhance the centre’s own monitoring powers, enabling it to conduct inspections, especially in those instances where there is no supervisory body. Presently, if accountable institutions make “small” transgressions of the FIC Act, they stand to be charged criminally. Manuel said that this “is particularly onerous and impractical and does not foster the spirit of cooperation intrinsic to the act”.