By Bradley Elliott, CEO of Anti-Money Laundering platform RelyComply
South Africa may have toughened its Anti-Money Laundering (AML) and Know Your Customer (KYC) laws since being greylisted by the Financial Action Task Force (FATF) in 2023, but financial crime is still thriving. Systemic weaknesses and a worrying tolerance for criminal activity continue to open the door for money launderers.
Nicole Johnson, facing about 100 criminal charges linked to gang activity, managed to buy a R5 million luxury apartment in Sea Point from her prison cell. She slipped past banks, estate agents, lawyers, and law enforcement. Normally, any buyer must prove where their money comes from. Yet Johnson, using her construction companies, allegedly hid her funds with help from those who knew exactly who she was.
Estate agents and developers are supposed to run AML and KYC checks under the Financial Intelligence Centre Act (FICA). But her developers were not registered with the Financial Intelligence Centre (FIC), a legal loophole that allowed the sale to go through with no proper vetting. This case should alarm regulators and financial institutions, especially as South Africa tries to escape the FATF greylist. It exposes a deeper issue — a weak culture of compliance and enforcement.
South Africa continues to act after the damage is done. Johnson’s case proves how easy it is for criminals to exploit blind spots, helped by professionals willing to “look the other way.” A quick online search would have revealed who she was. Yet she still bought a multimillion-rand property — proof that our systems are broken and our watchdogs are asleep.
Banks, lawyers, and property agents must stop avoiding uncomfortable questions. They need to know who is breaking the rules and act fast when red flags appear. Intelligence and shared data, not endless paperwork, are what will stop financial crime. While the state is responsible for prosecution, many private institutions also hold critical information. Without cooperation and clear accountability, enforcement will continue to fail.
Criminal networks are global and fast-moving. South Africa must keep up — using smart, secure digital tools that connect banks, regulators, and law enforcement. Modern anti-fincrime technology enables automated risk checks, data sharing, and faster reporting, helping to uncover hidden networks and support real prosecutions.
If South Africa truly wants to escape the greylist and clean up its financial system, it must act now. The cost of inaction is simple: more loopholes, more corruption, and more criminals walking free.
