A response to this required an integrated analysis of the threats as well as an

A response to this required an integrated analysis of

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A response to this required an integrated analysis of the threats, as well as an identification and assessment of the current money laundering countermeasures, and a subsequent gap analysis. This research also attempted to establish whether this was indicative of failures in the countermeasures or due to the poor implementation of these measures. Through identifying the gaps between the measures and their practical application, recommendations have been suggested that would address these shortcomings. In this study, the core argument that was presented was that South Africa has made considerable inroads into addressing money laundering in the formal banking sector but that there are considerable opportunities for improvement.
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5 This study was based on the following assumptions, namely: a) There are still shortcomings in the practical application of money laundering countermeasures in South Africa, despite these countermeasures being based on the legislative measures adopted by the G7/8 countries; and b) money laundering promotes crime and corruption in South Africa. 5. METHODOLOGY The study uses description, analysis and comparison regarding the money laundering countermeasures in South Africa and the G7/8 countries. The research was based on the use of intergovernmental, governmental and secondary sources. Description is used to indicate the money laundering threats and countermeasures in the global environment, with specific reference to South Africa. The official South African response, as deduced from legislation and other sources (such as speeches) is used to examine how money laundering countermeasures are addressed in South Africa. Subsequently, through the use of comparative analysis, the differences between the global best practices and the South African response, allowed opportunities for improvement to be identified. As far as the theoretical framework was concerned, the concept of money laundering and its various manifestations served as a basis for subsequent chapters. The case studies, namely South Africa and the G7/8 countries, were chosen to allow the money laundering countermeasures that were adopted by South Africa to be compared to the best practices established by the G7/8 countries. 6. STRUCTURE OF THE STUDY The following chapter divisions were used in the study: Chapter 1. Introduction The Introduction set out the basis upon which this research was conducted. This covered the background to this study, the objectives, problem statement, the research methodology and an overview of the structure of the research.
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6 Chapter 2. Money laundering: A Conceptual Framework This chapter provided the conceptual framework that was used to conduct this research. In this chapter, key concepts such as defining money laundering, and understanding the process, were covered. The chapter also focused on identifying the centres for money laundering, outlined the extent of the problem, discussed money laundering and underground banking, and the security threats and effects of money laundering.
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