{"id":583406,"date":"2025-02-21T10:56:32","date_gmt":"2025-02-21T08:56:32","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=583406"},"modified":"2025-02-21T10:56:37","modified_gmt":"2025-02-21T08:56:37","slug":"warning-to-criminals-who-want-to-hide-money-in-crypto-in-south-africa","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cryptocurrency\/583406-warning-to-criminals-who-want-to-hide-money-in-crypto-in-south-africa.html","title":{"rendered":"Warning to criminals who want to hide money in crypto in South Africa"},"content":{"rendered":"\n

South Africa is cracking down on financial crimes, and cryptocurrency platforms\u2014including Binance, the largest crypto exchange in the world\u2014are working with law enforcement to bring offenders to justice.<\/p>\n\n\n\n

“In South Africa, we’ve partnered with local authorities, conducting training for over 35 officials to help combat crypto-related crimes,” the head of Binance’s global Financial Intelligence Unit, Nils Andersen-R\u00f6ed, told MyBroadband.<\/p>\n\n\n\n

“Binance employs advanced encryption, secure data storage, and AI-driven monitoring tools to safeguard user information,” Andersen-R\u00f6ed said.<\/p>\n\n\n\n

“In addition to data protection, Binance has a dedicated team that will verify incoming requests from law enforcement authorities and check whether or not they are valid and proportional.”<\/p>\n\n\n\n

Andersen-R\u00f6ed added that Binance maintains strong working relationships with law enforcement agencies worldwide.<\/p>\n\n\n\n

“We have a global compliance and investigations team with over 750 professionals, including experts from law enforcement and blockchain analysis firms,” said Andersen-R\u00f6ed.<\/p>\n\n\n\n

“Additionally, Binance hosted more than 100 anti-cybercrime workshops for investigators globally, including engagements across Africa, to equip officials with the latest tools and knowledge in tackling crypto-related crimes.”<\/p>\n\n\n\n

South Africa’s clampdown on financial crime is part of an effort to get off the Financial Action Task Force (FATF) greylist.<\/p>\n\n\n\n

The FATF greylisted South Africa<\/a> on 24 February 2023 for falling short on its eleven measures of a country’s effectiveness in combating money laundering and the financing of terrorism.<\/p>\n\n\n\n

It highlighted 22 specific shortcomings, which South Africa has taken steps to address.<\/p>\n\n\n\n

One of the steps the Financial Intelligence Centre took last year was issuing Directive 9, which will require crypto platforms in South Africa to identify the parties to a cryptocurrency transaction.<\/p>\n\n\n\n

This is an implementation of the FATF’s “Travel Rule”, which requires financial institutions, including those who deal in virtual assets, to provide relevant originator and beneficiary information alongside transactions.<\/p>\n\n\n\n

According to the FATF, this helps to prevent criminal and terrorist misuse.<\/p>\n\n\n\n

Asked about this regulatory change, Andersen-R\u00f6ed said Binance supports regulatory developments that enhance the security and transparency of the digital asset ecosystem.<\/p>\n\n\n\n

“The implementation of the FATF’s Travel Rule in South Africa aligns with global trends in strengthening financial security and compliance,” he said.<\/p>\n\n\n\n

“Binance has proactively developed and integrated Travel Rule solutions to ensure seamless compliance while maintaining user privacy and security.”<\/p>\n\n\n\n

In addition to implementing the Travel Rule in South Africa, the Hawks arrested a man in January on charges of terrorism financing<\/a>.<\/p>\n\n\n\n

The 35-year-old, Ziyadh Hoorzook, was brought up on charges for a R11,500 Bitcoin transfer he made in 2017 to an organisation called al-Sadaqah.<\/p>\n\n\n\n

He has been charged with contravening the Protection of Constitutional Democracy Against Terrorist and Related Activities Act (POCDATARA).<\/p>\n\n\n\n

Hoorzook told the court that he intended to plead not guilty<\/a> and that the case against him had been exaggerated.<\/p>\n\n\n\n

He maintains that he had donated innocently to what he believed was a charitable organisation.<\/p>\n\n\n\n

“The state has misaligned me to a narrative which is factually untrue,” he said.<\/p>\n\n\n\n

Hoorzook was released on R30,000 bail after the Lichtenburg Magistrates Court ruled that he was not a flight risk. His case is scheduled to resume on 3 March.<\/p>\n\n\n\n

National Treasury has called for public comment on proposed amendments to laws with the aim of further strengthening the country’s Anti-Money Laundering and Counter-Terrorism Financing legislation.<\/p>\n\n\n\n

BusinessTech reported<\/a> that South Africa has now largely or fully addressed 16 of the 22 items the FATF highlighted in 2023.<\/p>\n\n\n\n

This leaves six items to be completed by its next report, which is due in the coming months.<\/p>\n\n\n\n

In hopes of addressing outstanding deficiencies by its next reevaluation, National Treasury recently published the draft General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill.<\/p>\n\n\n\n

Among the changes being proposed are raising penalties and expanding regulatory oversight to better align with international standards.<\/p>\n\n\n\n

Fighting money laundering, fraud, and scams<\/h2>\n\n\n\n
\"\"
Nils Andersen-R\u00f6ed, Binance Global Head of FIU<\/figcaption><\/figure>\n\n\n\n

Andersen-R\u00f6ed said Binance was in full compliance with South Africa’s FICA, POPIA, and POCDATARA legislation.<\/p>\n\n\n\n

He also said Binance was proud of its achievements in helping law enforcement tackle crypto-related crimes.<\/p>\n\n\n\n

“Our collaborative efforts led to the dismantling<\/a> of a multi-million-dollar criminal syndicate in Hong Kong, which used virtual assets for illicit activities and was linked to multiple fraud cases.”<\/p>\n\n\n\n

With Binance’s assistance, Andersen-R\u00f6ed said authorities arrested several individuals, including the group’s leader and key members, effectively shutting down their operations. Similar successes unfolded across Indonesia, India, Malaysia, Thailand, and the Netherlands.<\/p>\n\n\n\n

Asked whether Binance believed it had a role to push back against government and law enforcement overreach, Andersen-R\u00f6ed said they rather advocate for a balanced regulatory framework that ensures the protection of users while fostering innovation.<\/p>\n\n\n\n

“We work closely with regulators to create clear, fair policies that help maintain the integrity of the crypto industry,” he said.<\/p>\n\n\n\n

He also reiterated that Binance’s law enforcement team checks the legality and proportionality of requests and reach out to authorities as and when needed.<\/p>\n\n\n\n

Regarding their approach to scams, Andersen-R\u00f6ed said their Special Investigations team, which is primarily composed of former police investigators, proactively researches networks of pyramid schemes and Ponzis.<\/p>\n\n\n\n

They then identify and dismantle them in collaboration with law enforcement.<\/p>\n\n\n\n

“Our ultimate goal is to protect our users and enhance the safety of the crypto ecosystem,” he said.<\/p>\n\n\n\n

“Additionally, we partner with various private and public entities and provide training sessions to law enforcement, sharing our expertise and experience.”<\/p>\n\n\n\n

Binance also helps users recover funds lost to cybersecurity incidents and other forms of theft.<\/p>\n\n\n\n

“In 2024, our dedicated teams facilitated the recovery of $88 million worth of crypto assets linked to hacks, exploits, and theft, even when most incidents occurred on external platforms,” Andersen-R\u00f6ed said.<\/p>\n\n\n\n

“As long as Binance has the means to help, we remain committed to doing everything possible to support our valued users in reclaiming their assets.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Cryptocurrency exchanges are co-operating with law enforcement in South Africa to tackle financial crimes \u2014\u00a0including the largest exchange in the world.<\/p>\n","protected":false},"author":15,"featured_media":570802,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44696],"tags":[49375,42602,70157,98880,23691,98881,94211,98385],"class_list":["post-583406","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-binance","tag-directorate-for-priority-crime-investigation-hawks","tag-financial-action-task-force-fatf","tag-financial-intelligence-unit-fiu","tag-national-prosecuting-authority-npa","tag-nils-andersen-roed","tag-travel-rule","tag-ziyadh-hoorzook"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/583406"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=583406"}],"version-history":[{"count":5,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/583406\/revisions"}],"predecessor-version":[{"id":583446,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/583406\/revisions\/583446"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/570802"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=583406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=583406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=583406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}