Financial Action Task Force on Money Laundering (FATF), Report on money laundering typologies, Financial Action Task Force, 1999-2000, p 4.

Ibid, p 8.

Bureau for International Narcotics and Law Enforcement Affairs, United States Department of State International Narcotics Control Strategy Report, 1997, <www.state.gov/www/global/ narcotics_law/1997_narc_report/money.html>, (31 August 2000).

N South, On ‘cooling hot money’: Transatlantic trends in drug-related money laundering and its facilitation, <www.alternatives.com/crime/SOUTH.HTML>, (10 October 2000).

J Walker, Modelling global money laundering flows: Some findings, <www.ozemail.com.au/ born1820/m/method.htm>, (10 October 2000).

P Gastrow, Main trends in the development of South Africa’s organised crime, African Security Review 8(6), 1999, p 59.

Ibid.

Crime Information Analysis Centre (CIAC) The incidence of serious crime between 1 January and 31 March 1997, Quarterly Report 2/97, South African Police Service, Pretoria, <www.saps.co.za/8_crimeinfo/297/organised.htm>, (2 October 2000).

Crime Information Analysis Centre (CIAC), The incidence of serious crime in South Africa between January and December 1999, Semester Report 1/2000, South African Police Service, Pretoria, <www.saps.co.za/8_crimeinfo//2000/semester01_2000.htm>, (2 October 2000).

Ibid.

CIAC 1997, op cit.

W Hofmeyr: Special Director of Public Prosecutions, Asset Forfeiture Unit, Interview, Pretoria, 16 October 2000.

Bureau for International Narcotics and Law Enforcement Affairs, United States Department of State International Narcotics Control Strategy Report 1996, Washington, DC, March 1997, <www.state.gov/www/global/narcotics_law/1996_narc_report/money96.html>, (10 October 2000).

Walker, op cit.

Organisation for Economic Co-operation and Development (OECD), Policy Brief, July 1999, p 3.

J Hogarth, Beyond the Vienna Convention: International efforts to suppress money laundering, paper read at the International Conference on Preventing and Controlling Money Laundering and the Use of the Proceeds of Crime: a Global Approach, Courmayeur, Mont Blanc, Italy, 17-21 June 1994.

OECD, op cit, p 2.

EU Savona & MADefeo, Money trails: International money laundering trends and prevention/control policies, paper read at the International Conference on Preventing and Controlling Money Laundering and the Use of the Proceeds of Crime: a Global Approach, Courmayeur, Mont Blanc, Italy, 17-21 June 1994.

OECD, op cit, p 2.

A serious crime in terms of the Convention against Transnational Organised Crime is one that is punishable by a maximum penalty of imprisonment for four years or more.

OECD, op cit, p 4.

It is unclear exactly why South Africa has not become one of the initial subscribers to the Eastern and Southern African Anti-money Laundering Group. The reason for this is presumably related to the fact that South Africa’s own regime against money-laundering is not yet complete.

Drugs and Drug Trafficking Act, no 140 of 1992, section 10(2).

A N D Toms, Bank’s concerns regarding measures in South Africa to combat money laundering, paper read at a money-laundering seminar, South African Reserve Bank, Pretoria, 28 July 1995. These figures were disputed at a later seminar by a spokesperson from the SAPS’s Narcotics Bureau who indicated that only 51 cases were reported in the relevant period, and all by one bank. Of these, two were proven to be drug-related, 33 were still under investigation and 16 were not drug-related.

Drugs and Drug Trafficking Act, chapter V.

The Pretoria News of Thursday, 6 April 1995, reported that a convicted drug dealer was ordered to pay R100 000 and was also sentenced to an effective 10 years’ imprisonment. The vehicle in which the drugs were found was also forfeited to the state in terms of section 25(1)(b) of the Drugs and Drug Trafficking Act that provides for the forfeiture of any vehicle in which drugs are conveyed.

Proceeds of Crime Act, no 76 of 1996, section 28.

Ibid, sections 29 and 30.

Ibid, section 31.

Ibid, chapters 1 to 4.

Daily Dispatch, 22 July 1999, <www.dispatch.co.za/1999/07/22/southafrica/SPOILS.htm>, (9 October 2000). This case is currently under appeal.

Prevention of Organised Crime Act, no 121 of 1998, section 4.

Ibid, section 1(1).

Ibid, section 1(2).

Ibid, section 1(2), discussed above.

Ibid, section 7.

Ibid, section 80(1).

Ibid, section 7A.

Ibid, chapter 5.

Ibid, chapter 6.

Ibid, section 18.

Ibid.

Ibid, section 13.

Ibid, section 26.

In the Prevention of Organised Crime Act, this is referred to as an ‘instrumentality". See section 1(1).

Ibid, section 38.

Ibid, section 50.

Ibid, section 52.

Ibid, sections 48 and 50.

Ibid, section 63.

Ibid, section 2.

Ibid, section 1(1).

The number of persons required to form a group is not prescribed. The international standard according to the United Nations Convention against Transnational Organised Crime is three or more persons to form a group.

Prevention of Organised Crime Act, section 2(e).

Ibid, section 2(f).

Ibid, section 3(1).

Ibid, section 8(1).

Ibid, section 8(2).

Egmont Group, Information paper on financial intelligence units and the Egmont Group, <www.oecd.org/fatf/Ctryorgpages/orgegmont_en.htm>, (10 October 2000).

South African Law Commission (SALC), Report on money laundering and related matters, Project 104, SALC, Pretoria, 1996.

Financial Intelligence Centre Bill, clause 1(1) read with schedule 1, <www.polity.org.za/ govdocs/bills/2000/financialintell.html>, (29 September 2000).

Ibid, clause 18(2).

Ibid, schedule 2.

Ibid, clause 20(2).

Ibid, clause 2.

Ibid, clause 4.

Such as the Australian Transaction Reports and Analysis Centre and the US Financial Crimes Enforcement Network.

Financial Intelligence Centre Bill, clauses 21 and 22.

Ibid, clause 53(1)(f).

Ibid, clause 53(2).

Ibid, clause 23.

Ibid, clause 24.

Ibid, clause 53(1)(e).

Ibid, clause 53(2).

Ibid, clause 28.

Ibid, clause 53(2).

Ibid, clause 28.

Ibid, clause 30.

Ibid, clause 31.

IIbid, clause 32.

Ibid, clause 1(1).

Ibid, clause 37.

Ibid, clause 38.

Ibid, clause 42.

Ibid, clause 53(1)(d).

Ibid, clause 53(2).

Ibid, clause 43.

Ibid, clause 53(1).

The information concerning the structure and functioning of the SAPS and the approach to the investigation of organised crime was obtained from Assistant Commissioner F C Truter, Head: Component Organised Crime of the Detective Service, and Director J Oosthuizen, Director: Policy, Standards and Operational Development in the Component Organised Crime, Interviews, Pretoria, 12 October 2000.

South African Police Service Act, no 68 of 1995, section 16(1) and (2).

United Nations Convention against Transnational Organised Crime, article 3(a).

National Prosecuting Authority Act, 1998, section 6.

W A Hofmeyr, The importance of asset forfeiture in the war against crime, paper read at a seminar on asset forfeiture and money-laundering, Institute for Security Studies, Pretoria, 11 May 2000.

The information concerning the functioning of the Asset Forfeiture Unit and its approach to the investigation of proceeds from criminal activity and money-laundering was obtained from W A Hofmeyr, Special Director: Asset Forfeiture Unit, Interview, Pretoria, 16 October 2000.

RE Bell, An evolving series of proceeds of crime models, Journal of Financial Crime 8(1), 2000, p 21.

Income Tax Act, 1962, section 4.

Prevention of Organised Crime Act, section 71(1).

Statistics of the Asset Forfeiture Unit indicate an average of 2.4 new cases per month during 1999, compared to an average of six new cases per month over the period July to September 2000.