Let me say a few words, Madam Speaker, on some of the agencies that operate outside of the National Treasury but form part of the wider family of this Ministry.
Our youngest child is the Financial Intelligence Centre (FIC). The Act also provides an important tool to assist law enforcement agencies and facilitates their investigations. In addition, we want to begin implementing the measures already contained in the Act to monitor cross-border transactions soon.
The Financial Intelligence Centre itself, although in the very early stages of its development, is now operating independently of National Treasury. During the past year it received about 7 480 suspicious transaction reports from a range of accountable institutions, mainly the banks and money remitters.
I remain determined that South Africa will meet the international standard to prevent money laundering and more importantly, that we move progressively to increase compliance by our institutions. The 'know your customer' requirement is one such measure. It is a standard endorsed by many international bodies, including the Basel Committee on Banking Supervision, as well as the FATF. Banks and other accountable institutions need to know their customers as an important aspect of preventing their institutions from being abused by criminals.
As the deadline of 30 June this year approaches, this matter has caused some controversy. The Act requires that accountable institutions not transact with clients who have not been re-identified. There is concern that the documentation requirements are too onerous and that the time-frame may not be achievable. On the former, I am advised that most enquiries are based on misunderstandings and I am confident that account-holders and banks will find the regulations are sufficiently accommodating. On the time-lines, I have sought further advice and I will respond in the near future.