The number of suspicious transaction reports – which can signal the presence of illegally generated funds – submitted to the country’s financial compliance unit, the Financial Intelligence Centre (FIC), has increased by 176% in the past year.

The FIC, which is tasked with establishing financial intelligence for use in the fight against crime, money laundering and terror financing, said in its 2012/13 annual report that there had been a cumulative ten-year increase in the number of reports of suspicious transactions.

This had grown to 147 744 in 2012/13, compared with 53 506 in 2011/12. This also represented a steep jump from the 36 990 suspicious transactions reported in 2010/11 and the 29 411 for 2009/10.

Further, requests for information from domestic and international law enforcement and investigating agencies for FIC intelligence products grew by 47% over the 2012/13 financial year, which the agency said underscored a growing appreciation of the role of financial intelligence and the analysis it provided.

“The FIC plays a central role in uncovering a wide range of fraud and illicit financial activity – from combating the narcotics trade to uncovering rhino horn syndicates, State corruption and cybercrime,” the organisation said.

Investment in the FIC’s work also yielded tangible gains for public finances, recovering R1.17-billion for the fiscus with available funds of R245.3-million.

“This represents a value-adding growth on investment of 377% for the South African taxpayer,” the FIC noted.

The agency, which celebrated its tenth year of existence in 2013, was responsible for developing South Africa’s framework for combatting money laundering and the financing of terrorism in line with global standards, and collaborated with the private sector to strengthen compliance with the FIC Act.

It also created a reporting stream that assists law enforcement and investigating agencies in identify the proceeds of criminal activity.

“Our operations support government’s core objectives as defined in Presidential Outcome 3 – ensuring that all people in South Africa are and feel safe, particularly by reducing the overall levels of serious crime, developing an effective criminal justice system and combating corruption within the State,” said the FIC.