South Africa's problem with illegal money transfers


Many South Africans worry about the country's high levels of crime; levels which, according to last week's release of the latest crime statistics, seem to be on the rise.

  • At the recently held Tax Indaba, MP Des van Rooyen, chairman of Parliament's Standing Committee on Finance, said that government is looking at new ways to increase the tax base. Read the full report of Tax Indaba here.

Among the concerns is the very high amount of money illegally transferred out of the country last year - an amount of R10.8 billion, according to National Police Commissioner General, Riah Phiyega.

According to Phiyega, a lot of small businesses, many of which trade with large sums of money, are illegal. So while this money flows in and out of the country, it never gets to the bank.

Concerns over the illegal outflow of money are not new. In fact, earlier this year, as many as six pan-African lobby groups said, at the launch of a campaign called, "Stop The Bleeding", that Africa could improve health, education and incomes if illicit financial outflows were retained in Africa. The protestors said to raise money for the continent and lessen the dependence on foreign aid, crackdowns on tax evasion and illicit financial flows, as well as improved tax collection methods, were needed.

  • Stay connected, up to date and in the loop on what is happening in the world of finance and keep track of newly published expert insights and interviews with CFOs and CEOs. Become an online member and receive our newsletter, follow us on Twitter, like us on Facebook and join us on LinkedIn.

Related articles

IDU to showcase at Finance Indaba

The automation software company joins the line-up of partners for this year’s Finance Indaba, taking place on 10 October.