South Africa - Threat Assessment 2020 - Page of 1 - Financial Crime News

South Africa - Threat Assessment - 2020 Page 1 of 41

Sanctions & Terrorism: No comprehensive
 South Africa sanctions against the country, though some
 individuals and companies have been
 Section 1 - Executive Summary designated. In 2019, for proliferation, Tier 1 PPI
 (Proliferation) Index country, with a “Moderate”
Grey Lists: South Africa is not listed by the US
 response score of 749/1,300; GTI give South
as a “Country of Primary Concern” in respect of
 Africa a “Medium” impact (score 4,511/10).
ML & FC, or listed by FATF or the EU, on their
 South Africa is included in US Country Reports
“Grey” lists.
 on Terrorism.
NRA: South Africa has not yet published its
 Response & Resilience: South Africa is
National Risk Assessment.
 currently under FATF MER 4th round by
Organised Crime: According to the OC Index, ESAAMLG and the report is due in 2020. The
High Criminality - High Resilience. Criminality OC Index scores South Africa 5.58/10 for
6.17/10, (ranked 10th of 54 African countries resilience (High), ranked 9/54 for Africa, and
and 1st of 13 Southern African countries). Main 3/13 for Southern Africa.
markets are illegal mining (8/10), wildlife
 Indices: The 2019 Freedom in the World
crime & illegal fi shing (7.5/10), drugs (heroin
 report - score of 79/100 - and rated “free”.
& synthetic drugs) (7/10), & arms traffi cking
 South Africa’s Economic Freedom Index score
(7/10). The main “Criminal Actors” are “State
 is 58.8 (Heritage Foundation) making its
Embedded Actors” (7.5/10), “Foreign
 economy one described as “mostly unfree”.
Actors” (7.5/10), “Criminal Networks” (7/10),
 The Mo Ibrahim Index of African Governance
and “Mafi a Style Groups” (6.5/10).
 (IIAG) scored South Africa at 68/100, and
Corruption: TI CPI - 2019 - ranked 70/180, described it as “Bouncing Back.” The Basel
with a score of 44/100, a negligible AML Index 2019 ranked South Africa 84 out of
improvement from 2018, with a rank of 73/180 125 countries, with a score of 4.83/10.
and a score of 43/100. However, the 2019
 Overall Ratings: South Africa is rated overall
TRACE Bribery Risk Matrix shows improvement
 4th lowest risk out of 10 Southern African
to “Medium” risk with a score of 42, ranked
 countries, and 7th lowest risk out of 40 in Sub-
55/200.
 Saharan Africa, with a score of 60/100 and a
Modern Slavery: US Traffi cking in Persons: “Low - Moderate” status, made up of 41/100
was Tier 2 (Watchlist), upgraded to Tier 2 in the for Threats and 78/100 for Responses.
2020 US TIP report. The 2018 GSI Index: 47/51
African countries, 155,000 modern day slaves,
 FCN Rating:”Low - Moderate” Risk
incidence of 2.8/1000 people. SA has a rating
 60/100
of “B” response, equal highest rating in Africa.

 South Africa - Threat Assessment - 2020 Page 2 of 41

Section 2 - Country Dashboard

 South Africa ↗ Improving
 Capital & Population: Pretoria/56.4 million (est mid 2020)
 President: President Cyril Rhamaphosa (since 2018)
 GDP: US$349 billion (2017) (26% of SSA GDP)
 Economic Sector Breakdown: Agriculture (2.8%), Industry (30%), Services (67.5%)
 Exports: US95 billion in gold, diamonds, platinum, other metals and minerals,
 machinery and equipment to China 9.5%, US 7.7%, Germany 7.1%, Japan 4.7%,
 India 4.6%, Botswana 4.3%, Namibia 4.1% (2017)
 Imports: US$89 billion in machinery and equipment, chemicals, petroleum
 products, scientifi c instruments, foodstuffs from China 18.3%, Germany 11.9%, US
 6.6%, Saudi Arabia 4.7%, India 4.7% (2017)

 Score: 60/100 “Low - Mod” FCN Risk Rating Proceeds / Laundering
 (Average Country Score is 43 - SSA)

 Rank: 7/40 SSA - 4/10 Region SA range 7.5% - 10.5% GDP / 60 - 70% of Proceeds

 Organised Crime Costs of Corruption
 range up to approx 36 - 38% of Proceeds range up to approx 5 - 10% of Proceeds
 (Foreign Actors 7.5/10, State Embedded 7.5/10, Criminal Networks 7/10 & Mafia Style 6.5/10)

 South Africa Inherent Higher Risk Factors Total Criminal Proceeds in Sub
 Saharan Africa in US$ Billions - FCN
 Customer Sector Geography
 Risks Risks Risks
 2020 (not including fraud and
 corruption and tax evasion)
Customers with elevated Banks (in particular retail Major export / import
 exposures to: and corespondent banks) partner countries (trade
 real estate, motor vehicle mispricing via IFFs).
Criminal activities such as: dealers.
 illegal mining, logging, Neighbouring countries Mining Fishing
 wildlife & fishing, arms & Dealers in precious metals in particular Zimbabwe 10 2.5
drugs trafficking (heroin & & stones , bureau de Namibia & Mozambique Wildlife
 change, MSBs micro (abalone/tobacco), 2 Goods Piracy
 synthetics) & tobacco
 credit companies, lawyers, Mozambique (wildlife) 9
 smuggling, supported .
by corruption (eg PEPs & notaries.
public officials) that assist Hong Kong (abalone),
 Logging
 with facilitating these Informal sectors such as China & Vietnam (wildlife)
 12.5
crimes & also tax evasion. hawala
 Modern Slavery
 Afghanistan Pakistan, SE
 8.3
 Asia and Western Europe,
 Involving higher risk
 (heroin)
sectors and/or geography Drugs
 Tanzania, Kenya, &
 risks. 3
 Mozambique, Zambia & Theft
 Botswana (trade & transit 15
 of people)

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 South Africa - Threat Assessment - 2020 Page 3 of 41

Section 3 - Country Information

People & Geography: South Africa is other metals and minerals, machinery &
described as the “rainbow nation” due to the equipment to China (9.5%), US (7.7%),
country’s post-apartheid multicultural diversity. Germany (7.1%), Japan (4.7%), India (4.6%),
The capitals of South Africa are Pretoria Botswana (4.3%) & Namibia (4.1%) - 2017.
(administrative), Cape Town (legislative), and Imports: US$89 billion of machinery &
Bloemfontein (judicial). South Africa has a equipment, chemicals, petroleum products,
population of 56.4 million (July 2020 scientific instruments, foodstuffs from China
expected)1, with approximately 66.7% in urban (18.3%), Germany (11.9%) & US$ (6.6%) - 2017.
areas. Migration statistics show that 4.2 million
migrants arrived in 2019, and 824,600 Environment: According to the Environmental
emigrated.2 Performance Index6 2018, South Africa scores
 44.73/100 and is ranked 142/180 countries.
Recent History & Leadership: South Africa South Africa boasts a rich diversity in wildlife,
held its fi rst free multi-racial elections in 1994 marine life and plants, and is ranked third7 out
following the end of apartheid. The majority of the worlds “megadiverse” countries
rule under the African National Congress
(ANC) government has since 1994 struggled Tourism: Travel and tourism in South Africa
to address apartheid era imbalances in many generated US$24.6 billion in 2019 employing
areas such as wealth, housing, education and 1.48 million people (9.1%) and representing
healthcare.3 Jacob Zuma, who previously held 7% of South African GDP. Domestic spending
senior positions in intelligence in the ANC, on tourism and travel stood at 55% while
became president in 2009. Zuma was plagued international spending was 45%. Main tourists
by allegations of corruption and other come in from Zimbabwe (20%), Lesotho (17%),
scandals during his two terms in office and Mozambique (13%) Eswatini (9%) & Botswana
resigned in February 2018 under pressure (7%), with outbound tourists going to
from his own party. Zuma’s successor, Cyril Mozambique (21%), Lesotho (13%), Botswana
Ramaphosa (the ANC’s chief negotiator during (10%), Eswatini (9%) & Zimbabwe (7%)8.
South Africa’s transition to democracy and the
former deputy president from 2014) became Finance: South Africa's fi nancial services
the president, promising a “new dawn” of sector is the largest in SSA, with 5 of the top 10
reforms, economic growth and the fight Banks from South Africa9 with a well
against corruption. After general elections developed and advanced regulatory and legal
were held in 2019, Ramaphosa was elected as framework. In South Africa, 67% (people aged
president for his first full term. Ramaphosa over 15) have bank accounts, 8.9% have a
also became the Chairperson of the African credit card, 19% have a mobile money
Union in 20204. account, 91% make online payments, internet
 penetration is at 62% via 36.54 million internet
Economy & Trade: In 20175 the GDP of
 users and 103.5 million mobile connections or
South Africa was US$349 billion, with govt
 176% of the population10. Remittances from
revenues of US$92.8 billion, and 16.6% of
 overseas in 2017 were approx US$765 million
citizens living below the poverty line.
 (0.2% of GDP), according to the World Bank.11
Agriculture represents by output (2.8%),
Industry (30%), & Services (67.5%). Exports:
US$95 billion of gold, diamonds, platinum,

 South Africa - Threat Assessment - 2020 Page 4 of 41

Section 4 - Country Ratings & Country Risk Heat Map

 Source South Africa Source South Africa Source South Africa 

 World Economic Forum 40.7 / 100 Transparency International (TI) 44 / 100 Proliferation Index - PPI Tier 1
 Organised Crime Index* Corruption Perceptions Index* Threat Highest Threat Level

 OC Index 6.17/10 TI & Afrobarometer 19% Proliferation Index - PPI 749 / 1300
 Criminality* Citizens Views and Experiences of Corruption paid bribes in last 12 months to police Controls* Moderate Controls score
 Report

 OC Index 7.13/10 TRACE 42/100 Global Terrorism Index 4.51/10
 Criminal Actors Bribery Risk Matrix GTI - Impact* “Medium” Impact

 OC Index 7.5/10 Global Slavery Index 2.8/1,000 US Dept of State Yes
 State Embedded Actors GSI Incidence* Incidence of human trafficking Country Reports on Terrorism*

 OC Index 7/10 Global Slavery Index 155,000 Global Cybersecurity Index O.652/1
 Criminal Networks No of estimated Modern Day Slaves Est numbers of modern day slaves 2018 (56/152 globally & 4/42 regionally)

 OC Index 7.5/10 Global Slavery Index “B” Rating Mo Ibrahim Governance Index 68/100
 Foreign Actors Country Response Rating* (Ratings: AAA, AA, A etc) (49.9 - All Africa)* 7/54 African Countries “Bouncing
 Back”

 OC Index 6.5/10 US Dept of Labor N/A Freedom House 79/100
 Mafia Style Gangs Child Labour Freedom Index* “free”

 OC Index Synthetic’s & Heroin (7/10 US Dept of State Tier 2 Rated - 2020 Heritage Foundation 58.8/100
 Cannabis & Cocaine (3/10)
 Drugs Trafficking Trafficking in Persons* Economic Freedom Index “Mostly Unfree”

 OC Index 7/10 IOM Migration I - 4.2 million/E - 824,600 Basel AML Index* 4.83/10
 Arms Trafficking E - Emigration / I - Immigration

 OC Index 4/10 Illegal Unreported and Unregulated 2.43/5 FIU Egmont Yes
 People Smuggling (IUU) - IUU Fishing Index Member

 OC Index 3.5/10 EU Listing of Countries for Illegal Not Included Interpol Yes
 Human Trafficking Fishing Member

 OC Index 2/10 US DoS - Wildlife Trafficking Focus Asset Confiscations US$374 million in 2019
 Illegal Timber Focus / Countries of Concern* over 1% of Proceeds* Above estimated 1% of CP

 OC Index 7.5/10 Environment Performance Index 44.73/100 Country National Risk Assessment* No
 Illegal Wildlife 142/180 (Expected in 2020)

 OC Index 8/10 EUIPO & OECD Counterfeit Goods 0.123 Financial Information Sharing Yes
 Illegal Mining Propensity of Exports (2016) Partnership

 OC Index 5.58/10 Tax Justice Network 56 US Dept of State No
 Resilience* Financial Secrecy Index (58th out of 133) INCSR Vol I & Vol II*

 OC Index 6/10 EU List of None Co operative Not Included European Union List* No
 AML Jurisdictions for Tax purposes

 OC Index 6/10
 OECD - Global Forum Compliant FATF Standards Not Yet Available
 Law Enforcement on Transparency & Exchange Info for Tax Purposes 40 Recommendations*

 OC Index 5.5/10 Global Financial Integrity US$10 billion - 18% FATF Standards Not Yet Available
 International Co- operation Illicit Financial Flows* (2017) 11 IO’s on Effectiveness*

 OC Index 6.5/10 Embassy’s from N Korea, Syria, Iran Embassies of Iran, Syria, Cuba & FATF Standards Not Yet Available
Economic Regulatory Environment or Cuba North Korea Core 10 Recommendations

Illegal Drug Dependency / Disorders 537,000 / 0.92% Embargoes - Country Sanctions None FATF Standards Not Yet Available
 Number/Share (Comprehensive - UN, US, EU, UK) Core 4 IO’s on Effectiveness

 Numbeo Crime Survey 2020 77.49 OFAC Listed Parties 15 Local Adresses FATF No
 with Local Addresses Counter - Measures
 Strategic Deficiencies List*

 * Symbol Indicates the information is included in the FCN Country Index

 FCN Final Ratings - South Africa 
 Financial Crime News 41/100 Financial Crime News “Low - Moderate” Risk - 60/100
 Threat Rating “Moderate - High” Threat Financial Crime Rating 7/40 SSA - 4/10 SA

 Financial Crime News 78/100 Trend Improving
 Response Rating “Very High” Response (TI CPI, Mo Ibrahim, FATF, Basel Index & GTI - 3-5 years)

 South Africa - Threat Assessment - 2020 Page 5 of 41

Section 4 Continued - Country Threats Heat Map

There are many threats that effect South Africa, which are in most part targeted towards its
resources, be they its natural resources, the people, metals and minerals, crops and fish. The effect
of endemic corruption increases the threats and reduces the ability to effectively respond. For more
details in summary form see the figure below.

 South Africa - Threat Assessment - 2020 Page 6 of 41

Section 5 - Key Threats

In this Section 5, the most important criminal methaqualone, usually imported illegally from
markets, are assessed and summarised based India through various east African countries,
on available sources. but increasingly producing its own synthetic
 drugs for domestic consumption; attractive
5.1 National Risk Assessment (NRA): South
 venue for money launderers given the
Africa has not yet issued a National Risk
 increasing level of organised criminal and
Assessment (NRA). The fi rst NRA is currently in
 narcotics activity in the region and the size of
progress and it is anticipated that it will be
 the South African economy.”
published in 2020, in support of the 4th round
Mutual Evaluation Review (MER) conducted in 5.3 Corruption: Corruption is not only a
2019. Published crime statistics and other signifi cant generator of illicit funds, but also an
information has been used in this assessment enabler of other serious crimes which protects
to gauge crime threats and vulnerabilities. those involved from investigation, prosecution
According to the Numbeo 2020 Crime Index, and/or conviction.
South Africa is internationally ranked 3/129
with a score of 77.49 behind Venezuela (84.49)
 Former President Zuma to stand trial on
 corruption charges
and Papua New Guinea (81.93) and 1st in
 National Prosecuting Authority 2019
Africa12.
 South Africa’s struggles with corruption were
 Coming soon significantly exacerbated by the activities of
 National Risk Assessment 2020
 former President Jacob Zuma who is due to
 stand trial on numerous corruption charges,
5.2 US INCSR/US CIA Fact Book 2019: South
 (iro suspected bribes related to an arms deal
Africa is not listed as one of 80 countries
 when he was Vice President). Zuma, once a
categorised by the US State Department as a
 prisoner on Robben Island, with Nelson
“Country of Primary Concern” in respect of
 Mandela, was removed from office in February
fi nancial crimes in its 2020 Report (UNCSR)13.
 2018 by his own party, after at least 9 years of
 South Africa not listed alleged corrupt scandals, which included the
 US INCSR 2019 extensive state funded upgrades to his rural
 homestead, but most noteworthy as a result of
Notwithstanding this, the 2019 CIA Fact Book14
 his relationship with Gupta family members in
reports that South Africa is a “transshipment
 South Africa (recently sanctioned by US
centre for heroin, hashish, and cocaine, as well
 authorities), and the progressive state capture
as a major cultivator of marijuana in its own
 they attempted, allegedly with his support,
right; cocaine and heroin consumption on the
rise; world's largest market for illicit

 South Africa - Threat Assessment - 2020 Page 7 of 41

influencing cabinet appointments and winning Risk Typology” as a “Democracy with Simpler
lucrative state tenders through corruption. Economy”.

During his tenure, those institutions in South In September 2018, TI labelled South Africa as
Africa with the responsibility to combat a country with “limited enforcement of foreign
corruption, were undermined and weakened. bribery” - a country where foreign bribery goes
Whilst there is renewed hope that President largely unchecked and whose obligations
Ramaphosa will redress the balance, remain unfulfilled.
combatting corruption that is well entrenched
 TI & Afrobarometer Findings 2019 (% Survey) - 
in many institutions remains a significant
ongoing challenge.

South Africa has many of its own corruption 64.0
 70.0
 49.0

concerns, however, it is also a financial hub 18.0

across the region, so is also at risk of being ”Increasing” ”Doing Badly” ”Paid Bribe” ”Most Corrupt - Police”

 TI - Corruption Perceptions Index (Scores (out of 100) - According to TI & Afrobarometer’s Citizens
 Views & Experiences of Corruption17,
 published in 2019:
 45.0 43.0 44.0 45.0 43.0 44.0

 • 64% of South Africans surveyed think
 corruption increased in the previous 12
 2010 2012 2014 2016 2018 2019
 months. Overall, the police service is
used as a conduit for corrupt proceeds leaving considered the most corrupt institution, with
and entering South Africa. 49% of people believing that most or all
 police are corrupt, with 19% of the
Transparency International’s, (“TI”) Corruption
 respondents using police services reported
Perceptions Index 201915 ranked South Africa
 having paid a bribe to the police, up from 3%
70/180 countries, with a score of 44/100 in
 recorded in 2015.
2019. A score below 50 is indicative of a
country struggling with corruption issues. In • 18% of South Africans who had accessed
2018, the score was 43. basic public services in the last 12 months,
 had paid a bribe, or given a gift.
 High corruption scores
 Transparency International 2019
 • South Africans also think that local
The 2019 TRACE Bribery Risk Matrix places government officials are highly corrupt

South Africa in the “Medium" risk category, (45%), followed by government officials and

ranking it 55 out of 200 surveyed countries, members of Parliament, both at 44%. In

with a risk score of 42/10016 and a “Bribery

 South Africa - Threat Assessment - 2020 Page 8 of 41

addition, 37% believe that most or all The OC Index20 highlighted that “the most
 business executives are corrupt. pervasive criminal market in South Africa is in
 non-renewable-resource crimes, scoring 8 in
• Although those South Africans surveyed
 the Index. This is primarily because of extensive
 generally think that NGOs and religious
 illegal gold mining, which has expanded
 leaders are less corrupt, still 30% of South
 significantly”.
 Africans surveyed were concerned about
 corruption in the NGO sector. The OC Index identified the top 5 markets
 illegal mining (8/10), wildlife crime & illegal
South Africa was identified in January 2019 by
 fishing (7.5/10), drugs (heroin & synthetic
TI as a “country to watch” even though scoring
 drugs) (7/10), & arms trafficking (7/10).
has remained relatively unchanged on the CPI
 OC Index Criminal Markets - Importance - 
since 2017. They commented that “under
President Ramaphosa, the administration has
taken additional steps to address anti-
 7.5 8.0
corruption on a national level, including 7.0 7.0 7.0

 3.5 4.0
through the work of the Anti-Corruption Inter- 2.0
 3.0

Ministerial Committee. Although the National Heroin Wildlife HT Mining Logging Arms Synthetics People Smugg Cocaine

Anti-Corruption Strategy (NACS) has been in The main “Criminal Actors” (overall score
place for years, the current government 7.13/10) are “State Embedded
continues to build momentum for the strategy Actors” (7.5/10), “Foreign Actors” (7.5/10),
by soliciting public input…… In addition, “Criminal Networks” (7/10), and “Mafia Style
citizen engagement on social media and Groups” (6.5/10).
various commissions of inquiry into corruption
 OC Index - Criminal Actor Types - Importance - 
abuses are positive steps in South Africa18”

5.4 Organised Crime: According to the
Organised Crime (OC) Index (Africa 2019)19, 7.0 7.5 7.5
 6.5

South Africa is ranked 10th out of 54 countries
in Africa (1st of 13 Southern African countries)
 Criminal Networks State Embedded Foreign Actors Mafia Style
for the level of crime.
 According to the Global Initiative against
 High Criminality / High Resilience Transnational Organised Crime21, “there has
 Organised Crime Index 2019
 been a massive growth in organised criminal
 economy over the last decade, meaning bigger
Overall the OC Index describes South Africa as
 gangs, with more guns and more power,
High Criminality (score 6,17/10) - High
 extended criminal revenue sources in addition
Resilience (score 5.58/10).
 to drug and human trafficking, like extortion

 South Africa - Threat Assessment - 2020 Page 9 of 41

which is a major problem in South Africa,” and including European and Asian countries. These
“which is facilitated by the corruption in and criminal actors are concentrated in major cities.
the corrosion of the law enforcement agencies” None have complete control over specific
and now “we find connections between gangs markets, playing roles more akin to ‘interfaces’.
in Cape Town, Johannesburg and Durban.” They exert moderate to substantial degrees of
 economic and financial power in domestic
The rise of gangs in South Africa can be traced
 criminal markets, including the environmental
to apartheid which displaced black
 crimes and drugs markets”
people from their homes and expelled them to
designated regions. Forced into overcrowded According to Interpol’s Bureau in Pretoria25,
areas, for example South Western Township “South African organised crime groups are
outside Johannesburg (also known as Soweto) typically involved in wildlife and forestry crime
and the Cape Flats outside Cape Town, (particularly stock theft) and trafficking in drugs,
residents initially formed gangs for protection. firearms, people or counterfeit products.”
In recent years there has been a rise in the
number of gangs and the level of violence
 OC involved in wildlife and forestry
 crime, and trafficking in drugs, firearms,
from escalating turf battles as gangs have
 people or counterfeit products
become formidable criminal enterprises22. Interpol South Africa 2016
Membership is on the rise, with police
estimating that there were 100,000 gang Interpol also believe that, “cybercrime is also a
members in the Western Cape province alone growing national concern. Most crime networks
in 201323. As a result of the escalating murders engage in these crime areas simultaneously,
and bloodshed, in July 2019, President using the same trafficking routes to move
Ramaphosa ordered a military intervention multiple forms of illegal produce across the
which had varying levels of success and region, often bringing with them violence,
courted controversy. Gang access to a steady insecurity and economic loss.”
supply of firearms, supported by profits from
 According to Enact Africa26, three particular
drug trading and abalone poaching, continue
 growing threats from organised crime to
to hamper South Africa’s efforts to contain the
 peace, stability, security, development and the
bloodshed or ongoing participation in these
 economies in Southern Africa, are financial
crimes by gangs. See more in paragraph 5.7.
 crimes, drug trafficking and wildlife crime.
The OC Index24 states that “the prevalence
 The World Economic Forum Organised Crime
and ubiquity of foreign actors in South African
 Index report (2018)27 ranks South Africa 125
criminal markets are among the highest of any
 (140) with a score 40.7/100 of and a value of
country in Africa. South Africa is a prominent
 3.4 in respect of the extent of which organised
settlement destination for foreign criminal
 crime imposes costs on business ( 1 = to a
actors from across the region and beyond,
 South Africa - Threat Assessment - 2020 Page 10 of 41

South Africa - Threat Assessment - 2020 Page 11 of 41

great extent, imposes huge costs; 7 = not at all, January 2020 meeting28. There are multiple
imposes no costs). elements to the programme which include the
 use of modern technologies for example using
5.5.1 Environmental or “Green” Crimes:
 a scanning system to detect ivory and rhino
Illegal Wildlife Poaching and Trafficking:
 horn at OR Tambo International Airport. David
Wildlife crimes are estimated to constitute 21%
 Fein, the-Vice Chair for the United for Wildlife
of organised crimes detected in the Southern
 Financial Taskforce, said that “by going after
African region (according to Interpol).
 wildlife smugglers, we can also pursue other
Although there has been a decrease in rhino
 crimes that are much higher on countries’
poaching (due to increased prevention), there
 national security radar, like terrorism and drug
has been an increase in 2018 in elephant
 smuggling”. He also said that illegal wildlife
poaching.
 crime “operates within the same framework, the

 21% of organised crime activity same scale and with the same players who
 detected against wildlife crimes commit other transnational organised crime.
 Interpol 2018 The risk-benefit ratio for illegal wildlife

While rhino horn and ivory trafficking have trafficking has until now favoured the

received the most attention, other less traffickers. That’s a problem, but we also see it

publicised forms of wildlife, include abalone, as an opportunity because there’s already a lot

sea turtles and sharks. of intel being captured on the ground, it just
 needs to be handed up to the right channels”.
According to the OC Index 2019, the “levels of
corruption surrounding the wildlife markets are By going after wildlife smugglers, we
extremely high. Although many forms of can also pursue other crimes on
wildlife trafficking are concentrated in specific countries’ national security radar
 David Fein, United for Wildlife Vice-Chair
areas of the country – for example, abalone
poaching, which is limited to coastal areas – the In 2018, National Geographic29 highlighted an
effects are felt nationwide. This is due emerging threat related to growing demand
predominantly to the ripple effect these for the body parts of lions, including bones,
criminal markets have, in addition to extended teeth and claws, which are “sought after for use
supply chains and exchanges of goods – for in traditional medicines and trinkets in
example, the exchange of abalones for drugs.” Southeast Asia”. Although it's illegal to poach
 big cats in South Africa, it is currently legal to
Some South African banks have joined United
 export skeletons from captive facilities.
for Wildlife, a Royal Foundation initiative
spearheaded by HRH The Duke of Cambridge, Consequently, South Africa almost doubled
with others showing an interest in becoming the quota for exporting skeletons from 800 to
signatories to the Financial Taskforce at a 1,500 annually, sparking concern among

 South Africa - Threat Assessment - 2020 Page 12 of 41

wildlife experts that this may trigger an interest Whilst the trade is legal in South Africa, only a
and demand in trafficking African lion and third of the abalone caught is done so legally
other big cats. (i.e. in line with quotas and other regulations).

South Africa has been identified in the 2019 The illicit trade is controlled by Chinese
END Wildlife Trafficking Report30 as a “Focus” criminals, who source their product from local
country in respect of wildlife trafficking. gangs, often in exchange for drugs such as
 methamphetamine, known as “tik” in South
5.5.2 Environmental or “Green” Crimes:
 Africa. Abalone is dried in South Africa before
Illegal Fishing: The waters off the 2,798km
 being sent to Hong Kong, usually via
coastline of South Africa are home to a
 neighbouring African countries with laxer
number of important iconic marine species.
 border controls. Trucks routinely cross into
Five of the seven marine turtle species
 Namibia, Zimbabwe or Mozambique with
(leatherbacks, loggerheads, green, hawksbill
 abalone hidden in false compartments or
and Olive Ridley) and 37 species of whales and
 hidden among boxes of dried fruits.
dolphins, including the largest of all known
animals, the blue whale, and many shark types, The 2019 IUU Fishing Index32 rates South
including the endangered great white shark. Africa 2.43/5 and ranked 14/38 African
 countries. The IUU Index benchmarks
Fishing in South Africa plays a small part in the
 vulnerability, prevalence and response using
overall economy contributing less than 1%,
 scores (1 = best-performing; 5 = worst-
with the Western Cape, the centre of the
 performing).
industrial fisheries industry. Main fish and
seafood species include lobster, tuna and Illegal abalone fishing nets US$900
abalone, all highly prized and, in the case of million 2001 -2018
abalone in particular, the subject of significant Traffic - 2018
Illegal fishing.
 South Africa is not carded by the EU as far as
South Africa reportedly lost up to US$900 Illegal fishing is concerned.
million31 from 2001-2018 from the illegal
trade in abalone (large sea snails), which is 5.5.3 Environmental or “Green” Crimes:
supported by criminal gangs, both Chinese Illegal Mining and Smuggling: According to
and South African, that also deal in drugs. a 2017 report by the Minerals Council South
Abalone (sea snail) is considered one of the Africa33, its estimated that R7 billion (US$480
most expensive seafood in the world, with million) in illegal commercial mining and illicit
demand for abalone, or sea snails, in Asia dealings in precious metals and diamonds
pushing up prices further and incentivising occurs annually.
criminal gangs to fi sh illegally, threatening the
survival of this large sea snail.
 South Africa - Threat Assessment - 2020 Page 13 of 41

30,000 illegal miners work in disused and policy responses, which criminalise illegal
 and active mines - ISS miners, are misguided, counterproductive and
 Institute for Security Studies - 2019 ignore the poverty and socio-economic drivers
 behind the phenomenon”. Alleged police
According to the Institute for Security Studies34
 complicity is also highlighted as a problem.
(ISS), “around 30 000 illegal miners work in and
around thousands of disused and active mines Intelligence suggests that the most illegally
across South Africa. These illegal miners – mined gold is laundered by buyers who sell it
known as Zama Zamas – are organised by either to scrap-metal dealers or pawn brokers
criminal syndicates, and cause considerable (often associated with syndicates), who melt
financial losses and security headaches to down the doré (a semi-pure alloy of gold and
established, publicly listed companies”. The ISS silver) to mask its origin.
further reports that “The Minerals Council
 “While most syndicates prefer the local scrap-
South Africa estimates lost sales, taxes and
 metal to refinery route, there is evidence that
royalties of R21 billion (US$1.13 billion) a year
 illicit South African gold is leaking out the the
through illegal mining”. Zama-Zama means
 country’s neighbours”, namely Eswatini,
“take a chance” or “try your luck” in Zulu.
 Mozambique and Zimbabwe.
“Zama-Zamas are emblematic of a changing
 The South African Police Service (SAPS)
South African mining landscape. They are a
 Addendum to the SAPS Annual Report
direct by-product of the unanswered socio-
 (2017/2018) explains that “the main
economic inequalities faced by one of Africa’s
 contributing factor to illegal mining in Gauteng
leading economies and mining powers. While
 is the high number of old mines that are
South Africa remains one of the continent’s
 “ownerless” and infiltrated by illegal miners.
principal gold producers, its reserves are finite,
 Access is easily gained through air tunnels and
and declining. As the industrial gold sector
 abandoned shafts. The rivalry is tough in this
becomes less economically viable over the
long term, artisanal mining is increasing” illegal industry, with no tolerance of
 competitors.”The report links 94 murders to
 illicit mining in the reporting year.
 Lost production in artisanal mining
 exceeds USD 1 billion a year In 2019, ENACT reported that “socio-economic
 ENACT - 2019
 and political crises in neighbouring countries
 have resulted in millions of Southern Africans,
According to ENACT35, “illegal artisanal mining
in South Africa is among the most lucrative and particularly Zimbabweans, crossing the porous
violent on the African continent, with lost borders to seek their fortunes in South Africa –
production exceeding ZAR 14 billion (about the Minerals Council of South Africa estimates
USD 1 billion) a year. Current enforcement that 70% of Zama Zamas are undocumented

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South Africa - Threat Assessment - 2020 Page 15 of 41

foreigners”. Africa. A dangerous trend that has emerged in
 poorer communities is the use of a
 combination of heroin and marijuana called
5.6 Drug Trafficking: South Africa has an “nyaope.”
estimated 537,000 people36 with illegal drug
 In 2018, South African authorities seized a
use disorders (2017), representing 0.92% of
 record amount of cocaine in a single seizure in
the population. While financial crimes form the
 the Eastern Cape, when a shipment valued at
bulk of organised criminal activities in the
 ZAR 720 million (US$39 million) was
region, drug trafficking comes in second,
 intercepted, originating in Brazil and destined
contributing 23% in the past year. The region is
 for Singapore.
rapidly becoming a global hub for the
smuggling, trafficking and distribution of The US INCSR 2020 Report39 states that South
drugs37. Africa was identified as one of the “major
 sources of precursor or essential chemicals
According to the US INCSR 2018 Report38,
 used in the production of illicit
South Africa is reported as the “largest market
 narcotics....South Africa is a leading regional
for illicit drugs in Sub-Saharan Africa, and
 importer of chemicals used in the production
serves as a transshipment point for cocaine and
 of illicit drugs, particularly synthetic drugs”.
heroin primarily destined for Europe.
 Some precursors used in South Africa to
South American cocaine enters South Africa synthesise methamphetamine largely originate
primarily via air to Johannesburg’s O.R. Tambo in Nigeria and India. Law enforcement
International Airport. A portion is distributed for reportedly dismantled 58 clandestine
local consumption and the remainder is laboratories between 2018 and 2019, many of
trafficked internationally, often controlled by which included precursor chemical seizures.
Nigerian criminal organisations. Precursor chemicals seized in these raids
 included ethanol and toluene.
Heroin, primarily of Afghan origin, typically
arrives in ports in Tanzania, Kenya, and Law enforcement dismantled 58
Mozambique from South West Asia before clandestine laboratories
 Between 2018 and 2019
being subsequently smuggled by land into SA,
often transiting Zambia and Botswana. It is important to note that while the heroin is
 intended for European markets, there is a spin-
Methamphetamine (known locally as “tik”),
 off trade for local consumption, and a
methcathinone (“cat”), and methaqualone are
 developing local market. In addition to heroin
synthesized from precursor chemicals imported
 – cannabis, cocaine and new psychoactive
primarily from India and China……Cannabis is
 substances (NPS), have emerged as lucrative
the most commonly used illicit drug in South
 business for the criminal markets, with the

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South Africa - Threat Assessment - 2020 Page 17 of 41

country emerging as the leading regional alleged that “suspected gang members and
importer of chemicals used in the production businessmen with links to the underworld had
of synthetic drugs, signalling that NPS is a infiltrated the private security industry legally,
growing issue. to access more firearms and, in some cases, to
 try and mask illegal operations…. The security
 South Africa is the leading importer of company and guards were then used to protect
 chemicals used in production of
 the gangsters and intimidate rivals”. The
 synthetic drugs
 US INCSR 2020
 security industry was thrust further into the
 limelight when a bloody underworld turf war
The South African Police Service’s (SAPS)
 broke out in Cape Town in 2017 that resulted
annual crime statistics40 indicate that drug-
 in several shootings44.
related crime continued to rise and reported
that “323 547 cases of drug-related crime were SAP lost more than 9.5 million rounds
recorded during 2017/2018. This reflects an of ammunition and 4,357 firearms over
increase of 10,5% or 30 858 cases compared to last 6 years
 Minister of Police 2019
the previous year”

5.7 Arms trafficking: At a November 2019 Good Governance Africa45 reflected on

press briefi ng41, the Minister of Police, General the nexus between poaching and
 the “militarisation of anti-poaching
Bheki Cele, said that the 2018/2019 crime
 efforts” and suggested that that poachers
statistics confirmed that firearms were the
 source their weapons from farm attacks,
instruments most commonly used in the
 armouries and evidence lock-ups, as well
commission of crimes, especially violent
 as from Mozambique, via firearm
crimes. He announced a gun amnesty until
 consignments linked to the US and
May 2020 to encourage gun owners to
 Czech Republic, with Portugal used as a
surrender their illegal and unwanted firearms
 transshipment point.
to the SAPS. Police complicity in the gun crisis
has been persistently cited as contributor to
 5.8 Modern Slavery: According to the Global
the scourge amid ongoing allegations that
 Slavery Index (2018), there are 155,00046
police weapons were falling into the hands of
 modern slaves living in South Africa, based on
syndicates, and in particular, gangs in the
 an incidence rate of 2.8/1000 people and was
Western Cape. Cele said that the SAPS had
 rated as ‘B” in response (with Ratings from
lost more than 9.5 million rounds of
 AAA, AA, A etc). and ranked 47out of 51
ammunition and 4,357 firearms over the last 6
 African countries.
years42. Security companies have also been
implicated in illegal gun smuggling in South South Africa was categorised as a Tier 2
Africa, and investigative journalists43 have (Watchlist) Country in the 2019 US Trafficking
 in Persons Report47 which reports that “the
 South Africa - Threat Assessment - 2020 Page 18 of 41

Government of South Africa does not fully South Africa. Traffickers coerce victims through
meet the minimum standards for the traditional spiritual practices. Traffickers force
elimination of trafficking but is making foreign and South African LGBTI persons to
significant efforts to do so. These efforts engage in sex. Traffickers exploit foreign male
included prosecuting more traffickers and, in victims aboard fishing vessels in South Africa’s
coordination with international organisations, territorial waters; NGOs estimated 10 to 15
training front-line responders on trafficking”. victims of labor trafficking disembark each
 month in Cape Town. Traffickers exploit young
 Tier 2 (Watchlist) country men from neighbouring countries who migrate
 Global US Trafficking in Persons 2019
 to South Africa for farm work; some were
In describing the trafficking profile, they added subsequently arrested and deported as illegal
that “human traffickers exploit domestic and immigrants. Forced labor is reportedly used in
foreign victims in South Africa, and traffickers some fruit and vegetable farms across South
exploit victims from South Africa abroad. Africa. Traffickers subject Pakistanis and
Traffickers recruit victims from poor countries Bangladeshis to bonded labor in businesses
and poor and/or rural areas within South Africa owned by their co-nationals. Official complicity
to urban Centre’s, such as Johannesburg, Cape —especially by police—in trafficking crimes
Town, Durban, and Bloemfontein, where remains a serious concern. Some well-known
traffickers force victims into sex trafficking, brothels previously identified as locations of
domestic servitude, criminal activities, and sex trafficking continue to operate with officials’
agriculture. Syndicates—often dominated by tacit approval.”
Nigerians—facilitate trafficking in the
commercial sex industry. To a lesser extent, 155,000 Modern slaves
 Global Slavery Index 2016
syndicates recruit South African women to
Europe and Asia, where traffickers force some According to the US Department of Labour
into prostitution, domestic servitude, or drug 2018 Child Labor and Forced Labor Reports48,
smuggling. Traffickers sometimes employ South Africa is a “source, transit, and
forced drug use to coerce sex trafficking destination country for child trafficking.
victims. Traffickers increasingly hail from Children are trafficked from poor rural areas or
Nigeria, the Democratic Republic of the Congo, peripheral townships to urban centres, such as
and Cameroon. Mozambican crime syndicates Cape Town, Durban, and Johannesburg. Girls
facilitate trafficking from the eastern border of are mainly victimised for commercial sexual
the Kruger National Park, using the same route exploitation and domestic work, and boys are
to facilitate other illicit crimes.” forced to work in street vending, food service,
 and begging. Refugees, orphans, and children
Additionally, “traffickers increasingly force
 with disabilities are often vulnerable to child
women from Lesotho into sex trafficking in
 labor, such as forced begging.”
 South Africa - Threat Assessment - 2020 Page 19 of 41

In the recently released 2020 US TIP49, South Counterfeit antiretroviral drugs for AIDS
Africa has been upgraded to a Tier 2 country treatment continue to flow into the
and removed from the watchlist. country
 South African Health Products Regulatory Authority

5.9 Theft and Smuggling: The SAPS50 Smuggling of counterfeit pharmaceutical
recorded a number of different types of theft products are particularly concerning as they
under a single category in their 2018/2019 may present safety hazards after it was
statistics labelled “Other Theft”, and included reported that counterfeit antiretroviral drugs
anything from a low value pen to hundreds of for AIDS treatment continue to flow into the
meters of copper cable valued at thousands of country52. Other identified counterfeit
Rand. During 2018/2019, 300,457 counts of products include (but are not limited to)
theft were reported under this collective watches, handbags, clothing, shoes, jewellery,
category. car parts, medicine, cigarettes, alcoholic
 drinks, face creams, and food.
Other crimes that could be related to property
theft, and therefore stolen goods representing 5.10 Tobacco Smuggling: According to
the proceeds of crime, reported in this period ENACT53, “the illicit cigarette trade is defined
are stock theft (29,672), common robbery as the ‘supply, distribution and sale of
(51,765), robbery with aggravating smuggled genuine, counterfeit or cheap white
circumstances (140,032), robbery at residential tobacco products’. Counterfeit cigarettes refer
premises (22,431),burglary at non-residential to identical copies of branded products that
premises (71,224), robbery at non-residential are manufactured without the authorisation of
premises (19,991), truck hi-jacking (1,182), the rightful owners. This is intentionally meant
carjacking (16,026), theft out of or from motor to deceive consumers. Cheap white cigarettes
vehicle (125,076), burglary at residential (or illicit whites) are produced with the approval
premises (220,865), shoplifting (60,167), theft of a licensing authority in one country, but
of motor vehicle or motorcycle (48,324), smuggled and sold in another without duties
robbery of cash in transit (183), and bank being paid”.
robbery (4).
 The South African Revenue Service (SARS), has
Smuggling in South Africa includes the estimated the loss through the illegal cigarette
smuggling of wildlife (and products), cash, trade for the 2015/16 financial year was R6
arms, drugs, gold, cigarettes/tobacco, billion (US$340 million)54 and according to
counterfeit goods, motor vehicles, humans, the ISS, Africa, the, “trade is part of a broader
firearms, explosives (Zimbabwe)51, diamonds illicit economy involving counterfeit goods,
and minerals. More detailed information can motor vehicles, clothing and textiles, movies
be found in other sections of this report. and music. Revenues gained contribute to

 South Africa - Threat Assessment - 2020 Page 20 of 41

high-level corruption, political party funding across these platforms increased by 75.3%.
and other criminal endeavours.” Mobile banking incidents showed an increase
 of 100%, with losses of R28.9 million (US$1.55
According to “Tobacco Wars” by Johann van
 million), while online banking incidents
Loggerenberg, illicit cigarettes make up
 showed an increase of 37.5%, with losses of
around 40% of the cigarette trade and show
 R129 million (US$7 million). Banking app
“no sign of slowing down.” Whilst most illegal
 incidents increased by 55.4%, with losses of
cigarettes are thought to be produced in
 R104.9 million (US$5.6 million) for the same
South Africa itself, smuggled cigarettes are
 period. There has been “a sharp increase in
also brought into the country from Zimbabwe
 ‘vishing’ incidents, where criminals phone bank
and Mozambique55.
 customers, lead them to believe that they are
5.11 Financial Crimes: According to Interpol’s speaking to the bank or a legitimate service
Organised Crime Report for 2018, “fi nancial provider, and use social engineering tactics to
crimes represent approximately 43% of manipulate the victim into disclosing their
organised crimes committed in Southern confidential bank card details, as well as other
Africa. Among these are illicit fi nancial fl ows, personal information”. Ponzi/pyramid schemes
counterfeiting, fraud, money laundering, are also considered an important fraud type.
bribery, corruption and tax evasion, all of which
 According to the SAPS 2018/2019 statistics57,
are often perceived to be the most profi table
 “Commercial Crimes” covers a vast range of
areas of operation for organised crime groups.
 offences ranging from fraud to statutory
Corruption, bribery and money laundering
 offences related to trademark theft, bank and
continue to present a serious threat to Southern
 tax evasion. During the 2018/2019 financial
African Development Community countries.”
 year, 83,823 counts of commercial crime were

 Financial crimes represent 43% of reported to the police, reflecting an increase of
 organised crimes committed in 14.4% or (10,546 counts) compared to
 Southern Africa 2017/2018.
 Interpol 2018
 5.12 Goods Piracy / Counterfeit Goods:
Fraud losses on South African-issued bank According to the Trends in Trade & Pirated
cards (credit and debit) rose by 18% in 2018, Goods Report 201958 by the EUIPO & OECD,
compared to the previous year, and totalled 3.3% of world trade in 2016 is made up from
R873.4 million (US$45 million), according to trade in counterfeit goods. South Africa is
South African Banking Risk Information Centre estimated as having a low propensity to export
(SABRIC)56, an industry body. In 2018, 23,466 counterfeit products with a score of 0.123/1.0
incidents across banking apps, online banking with export trade to the rest of the world and
and mobile banking amounted to R262.8 0.398/1.0 for export trade with the EU.
million (US$14 million) in losses. Incidents
 South Africa - Threat Assessment - 2020 Page 21 of 41

5.13 Tax Evasion: According to the African challenges identified include trade in the
Union59 it is estimated that South Africa furniture sector, as well as the sugar industry65.
suffered from illicit Financial Flows (IFFs)
leaving the country from 2004-2013, averaging
 Industries most affected by illicit trade
 are tobacco, textiles and clothing
US$21 billion a year and almost US$10
 South African Revenue Service
billion a year from 2008-2017, according to
Global Financial Integrity (GFI)60, representing South Africa is not included on the EU’s List of
a loss in taxes to South Africa of around non-cooperative jurisdictions for tax purposes.
US$520 million, up until 2013 and on It is included in the OECD’s Global Forum on
average, US$247 million a year thereafter. Tax Transparency List, but is also designated as
South Africa has a tax to GDP ratio of 24.7%61, “Compliant.”66
which exceeds the average African figure of
16.2, ranking 27th out of 40 SSA countries (1st 5.14.1 Emerging Threats: Cybercrime:

being the lowest Tax to GDP country), and According to Kaspersky Lab, there are 13,842

rated across Africa as a “Medium” tax cyber attacks daily in South Africa. That
 equates to more than 570 attacks every hour.
collection country. Other research62 published
 Bank fraud, particularly the use of malware on
in 2019, albeit looking at the period
 mobile phones, has also increased
2010/2011, estimated a personal income tax
 dramatically, according to SABRIC67. SABRIC
gap of R26.2 billion (US$1.4 billion).
 also reports that South Africa loses US$157
The Tax Justice Network: Financial Secrecy million annually to cyberattacks68. The top 3
Index 202063 scores South Africa at 56/100 countries targeted in cyberattacks in Africa in
(58th out of 133). 2018 were South Africa, Nigeria and the
 Central African Republic. According to the
The South African Revenue Service (SARS) is 2018 Global Cybersecurity Index (GCI)
reportedly said to be losing the fight against report69, South Africa is ranked 4th in Africa
smuggling, counterfeit goods and tax evasion and 56th globally, with a score of 0.652, and
in the country64 and lost approximately R2.1 regarded as a country that has “developed
billion (US$113 million) in revenue in 2019 as complex commitments and engaged in
a result of illicit trade. SARS lamented that cybersecurity programmes and initiatives” and
despite their interventions, that importers and a “Medium” level of commitment.
exporters continue to find ways to avoid
paying the duties and value-added tax that 5.14.2 Emerging Threats: Kidnapping: In the
apply to the goods. SARS has said that SAPS 2018/2019 report, it was reported that
customs fraud is on the rise, including through 5,455 kidnapping cases were reported to the
the mis-declaration (undervaluation) of goods. police within the year. Although the most
Industries most affected by illicit trade are common motive behind the kidnappings was
tobacco, textiles and clothing. Emerging found to be crimes of a sexual assault (22%),
 South Africa - Threat Assessment - 2020 Page 22 of 41

only a small number of cases were linked to and the use of automatic weapons, appear to
ransom requests (1,8%). This appears to have be largely driven by organised crime groups,
escalated with recent media reports70 and there are indications of collusion with
suggesting that kidnapping incidents have mine security officers. These attacks are often
increased exponentially and that kidnapping characterised by violence. The Minerals
gangs have earned more that ZAR 1 billion Council is said to be “aware of 19 armed
(US$54 million) in the last year. This number is attacks on gold facilities in 2019, during which
expected to be higher as victim’s families are more than 100kg of gold was stolen, compared
threatened, and pay ransoms without with ten attacks in 2018”. The figure may be
reporting the matter to the police. Wealthy higher, as not all companies disclose their
South Africans and foreigners, especially those losses. The Minerals Council CEO reportedly
of Asian nationality and businessmen with cash said that “ the impact of illegal mining and
businesses, were reportedly being targeted. product theft on the industry and the country
The report claims that kidnappers frequently has risen to unprecedented levels and costs
asked for more than ZAR 1million the country significantly. The mining industry is
(US$54,000) and media reports have quoted under siege and this detracts from production,
a police general commenting that the “ransom employment and investment.” These attacks
is paid in Dubai via a Hawala banking place further financial pressure on mining
system”71. Statistics reportedly show that there operations that are already dealing with illegal
are as many as 16 people kidnapped or miners. In December 2019, the Minerals
abducted daily in South Africa. Not only have Council released a statement calling for urgent
the police admitted that they are severely interventions, which was echoed by players in
under-resourced to address the increasing the industry. The establishment of a dedicated
number of these crimes, they have divulged mining police task force has been proposed.
that “several police officers have been arrested
 5.15 Overall Threat Level: According to FCN,
for colluding with kidnappers”.
 the overall FC Threat Level in South Africa is
5.14.3 Emerging Threats: Gold Raids: Media rated as a “Moderate to High” Threat with a
reports72 in early 2020 have highlighted a score 41/100, ranked the 2nd highest threat in
“surge in so-called gold raids, characterised by Southern Africa, and the 11th equal highest
heavily armed intruders targeting mining threat across SSA.
companies and smelt houses, holding staff
hostage and making off with concentrate and
smelted gold”. In one incident, gold
concentrate valued at approximately
US$500,000 was stolen73. The attacks, which
are said to be executed with military precision

 South Africa - Threat Assessment - 2020 Page 23 of 41

Section 6 - Sanctions & Terrorism

In this Section 6, the focus is on sanctions and 6.2 Terrorism / Extremism: Following the
terrorism threats. September 2013 Westgate Mall attack in
 Kenya, the SAPS began improving its
6.1 Sanctions: South Africa is not subject to
 counterterrorism effort to increase its
international sanctions.
 preparedness for similar terrorist attacks in
South Africa is the only SSA country to be South Africa.
listed as a Tier 1 Country, reflecting a
 US Country Terrorism Reports
heightened potential proliferator threat with
 US Department of State - 2019
“Moderate” assessed controls score at
 According to the US DoS Terrorism Country
749/1,30074, according to the PP Index.
 Reports 201778, “since publicly acknowledging
 Proliferation Tier 1 country the presence of IS facilitation networks and
 PP Index - 2019
 cells in 2016, the South African government
Each of Iran, Syria, Cuba and North Korea have has not publicly provided estimates of the
embassies in South Africa. number of South African nationals who have
 immigrated or returned from IS controlled
The volume of North Korea's reported exports
 territories. South Africa is a major international
to South Africa in 2017 was US$256,000, while
 transit hub that has proven an appealing
the volume of reported South African exports
 location for terrorists and other criminal
was nearly US$2 million75.
 Global Terrorism Index - Impact - 
There are 15 entries, made up of 7 persons (Scores out of 10 - lower scores are better)

and 8 entities listed by US OFAC with
addresses in South Africa76.
 4.2 4.5
 4.1
Targeted financial sanctions (TFS) measures by
 2.5

United Nations Security Council (UNSC) in its 0.5

Resolutions are administered by the Financial 2010 2012 2014 2016 2018

Intelligence Centre (FIC). The use of TFS by the networks to facilitate illicit travel abroad.”
UNSC also extends beyond the instances
relating to the financing of the proliferation of According to the 2019 Global Terrorism

weapons of mass destruction and the relevant Index79 South Africa is ranked 41/138 globally

provisions of the FIC Act aim at enabling South and 11/36 in SSA with a score of 4.511/10

Africa to meet these international (whereas 10 is maximum score - greatest

obligations77. threat) with an impact rating of “Medium”.

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