Domestic and foreign travellers must now declare cash in their possession above the threshold of R100 000 when crossing the country’s land and seaports, says national financial intelligence unit the Financial Intelligence Centre (FIC).

From July 1, travellers crossing any of the country’s air, land or sea borders and who have in their possession cash, goods, currency and/or bearer negotiable instruments above the threshold of R100 000 will be required to declare this through the Customs and Excise traveller management system.

The new reporting stream, called cash conveyance reporting, or CCR, signals a significant enhancement in efforts to stem illicit movement of money across South Africa’s borders, the centre says.

The proclamation of July 1 as the start date of Section 30 of the FIC Act was gazetted on June 5.

This entry into force of the new section also activates the responsibility for Customs and Excise of the South African Revenue Service (SARS) to receive such declarations made by travellers and make them available to the FIC, the centre says.

In preparation for the reporting stream, the FIC has worked closely with SARS, which tested the traveller management system at various air, land and seaports as a pilot project.

CCRs will add significantly to the range of regulatory reports the FIC uses in meeting its mandate to identify proceeds of crime and assist in combating money laundering, terrorist financing and proliferation financing, the FIC notes.

“This new reporting stream provides an important mechanism for assisting in stemming the flow of funds moving illicitly across South Africa’s borders,” says FIC director Thabiso Thiti.

“This system has taken years of hard work and intense collaboration from teams at SARS, the FIC and other role-players. Having the traveller management system in place will strengthen the country’s tax base and support efforts to stem cross-border financial crime,” he says.

As a member of international organisation the Financial Action Task Force (FATF), South Africa needs to adhere to the recommendations and measures put in place by the body, which sets international standards for combating money laundering and terrorist financing.

Section 30 of the FIC Act has been on the statute books since the promulgation of the FIC Act in 2001, Thiti points out.

Other regulatory reports are provided to the FIC by financial and non-financial institutions on transactions identified as being vulnerable to possible abuse for money laundering purposes.

These regulatory reports include cash threshold reports, on transactions exceeding R50 000, and suspicious and unusual transaction reports on transactions that are deemed to be suspect.

The required regulatory reports also include terrorist property reports where there is suspicion that the reporting institution is in possession of property related to terrorism or terrorist financing, the FIC says.

Information provided through transaction monitoring systems will also assist South Africa in meeting Recommendation 32 of the FATF, which is aimed at stemming the illicit, physical movement of money and/or bearer negotiable instruments across borders, the centre says.