Three new South African laws have been approved, including child protection measures

The National Assembly and the National Council of Provinces have approved several new laws for the country.

The National Assembly approved General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill on Tuesday (November 22), while the NCOP approved the Children’s Amendment Bill and the Drugs and Drug Trafficking Amendment Bill.

The Anti-Money Laundering and Combating Terrorism Financing Amendment Bill is an omnibus bill that seeks to amend various pieces of legislation in order to address deficiencies in combating money laundering and terrorism financing and bring South Africa into compliance with the global standards set by the Financial Action Task Force (FATF).

It is South Africa’s main response to the FATF’s threat of greylisting, and it is being rushed through parliament to avoid that outcome.

South Africa is a member of FATF, which conducted a peer review and issued a Mutual Evaluation Report on the country’s implementation of FATF’s 40 recommendations to combat money laundering and terrorism financing in 2019. South Africa received a low rating in the report because it failed to meet 20 of the 40 FATF standards.

The National Treasury and the Financial Intelligence Centre (FIC) briefed the standing committee on finance on the Bill on August 31, 2022, and public hearings were held on October 11, 2022.

Following concerns about the short period allowed for public comment on the bill, the committee unanimously extended the comment period to October 25, 2022.

During the public participation process, 59 public submissions were received. A total of 43 comments were received prior to October 11, 2022, and an additional 16 after the deadline was extended to October 25, 2022.

The bill amends five pieces of legislation:

• The Companies Act;
• Financial Intelligence Centre Act (FICA);
• Financial Sector Regulation Act (FSRA);
• Non-Profit Organisations Act; and
• Trust Property Control Act.

It proposes to add a definition of “beneficial owner” to four of the aforementioned Acts (but not the NPO Act).

The bill grants the executive branch of government unrestricted authority to issue regulations governing access to primarily private information, particularly in the context of trusts. One of the primary goals of the bill is to require the beneficial owners and ultimate controllers of trusts, corporations, and non-profit organisations to be disclosed (NPOs).

It addresses the FATF’s list of 20 technical deficiencies. The bill will now be considered by the National Council of Provinces (NCOP).

Other legislation

Meanwhile, the NCOP held a virtual plenary session on Tuesday to discuss two bills: the Children’s Amendment Bill and the Drugs and Drug Trafficking Amendment Bill.

Both Bills were passed by the National Assembly and sent to the NCOP for approval in September.

The Children’s Amendment Bill, among other things, addresses children’s rights to privacy and information protection, unmarried fathers’ rights, medical testing of children in need of care and protection or adoption, rules governing care and protection proceedings, and the designation and functions of a Registrar of the National Child Protection Register.

The bill was adopted with amendments by the NCOP, and it will now be sent back to the NA for debate and decision.

The Drugs and Drug Trafficking Amendment Bill is the result of a Constitutional Court decision in Jason Smit v Minister of Justice and Constitutional Development and Others.

The Court ruled that section 63 of the Drugs and Drug Trafficking Act of 1992, which purports to delegate plenary legislative power to the minister to amend the Act’s schedules, is in conflict with the Constitution and thus invalid.

The Court also ruled that the amendments made to the Act’s schedules under Section 63 are invalid.

The Bill proposes to amend the Drugs and Drug Trafficking Act of 1992 by repealing the minister’s delegated plenary legislative powers to amend Schedules 1 and 2; and amending Schedules 1 and 2.

The Amendment Bill on Drugs and Drug Trafficking will now be sent to the President for his signature.