Banking Sector Equips Hawks to Combat Financial Crime in South Africa

The South African banking sector has stepped up its efforts to combat financial crime and money laundering by partnering with the Directorate for Priority Crime Investigation (Hawks). Through the Digital and Financial Forensic Analysis Centre (DFAC), banks are providing the Hawks with cutting-edge tools, training, and resources to investigate and prosecute complex financial crimes.

This initiative comes at a crucial time as South Africa works to address deficiencies identified by the Financial Action Task Force (FATF) that led to its inclusion on the grey list.

Strengthening Financial Crime Investigations

The Digital and Financial Forensic Analysis Centre is a collaborative effort between the Banking Association South Africa (BASA), the South African Banking Risk Information Centre (SABRIC), and the Hawks. SABRIC CEO Nischal Mewalall emphasized that the Centre’s mission is to strengthen the Hawks’ investigative capabilities:

“The purpose of the DFAC is to bolster South Africa’s capacity to investigate and prosecute financial crime by making cutting-edge digital and financial forensic analysis capacity available to the Hawks.”

Key resources provided by the DFAC include:

• Advanced financial forensics training for senior investigators.
• State-of-the-art software and hardware to analyze complex financial crimes such as money laundering and terrorism funding.
• A digital subpoena system to streamline access to bank records.

Addressing the FATF Grey List

The Centre’s creation was motivated by South Africa’s efforts to exit the FATF grey list, which has hampered the country’s economic interests. While South African banks largely comply with international standards, their participation in the DFAC demonstrates their commitment to strengthening the country’s overall anti-financial crime framework.

“The grey-listing highlighted deficiencies in combating financial crime and money laundering. The DFAC offers a practical way for banks to enhance law enforcement’s capacity while supporting government efforts to exit the grey list,” said Mewalall.

Digital Subpoenas: A Game-Changer

One of the DFAC’s standout achievements is the launch of digital subpoenas under Section 205 of the Criminal Procedure Act. This allows the Hawks to obtain bank records electronically, dramatically reducing investigation timelines.

The platform connects the Hawks in Gauteng to 11 major banks via a secure network. Investigators can now:

• Serve subpoenas electronically.
• Receive acknowledgments and responses from banks through the system.

To date, 10 subpoenas have been successfully served digitally. The platform is set to expand to other provinces in the coming year, with plans for eventual national rollout across the South African Police Service (SAPS).

Lieutenant General Godfrey Lebeya, head of the Hawks, praised the initiative:

“Digital subpoenas bring investigators closer to those they are seeking and ensure the financial trail leads to the recovery of assets bought with illicit money.”

Transforming Financial Forensic Capabilities

The DFAC is making strides in building South Africa’s capacity to tackle financial crime. With 64 staff members—including 58 Hawks investigators and six technical support experts—the Centre specializes in digital forensics and financial data analysis.

Key achievements include:

• Processing over 114 bank statements, spanning years and millions of transactions, for faster money trail analysis.
• Training 782 law enforcement officials in analyzing bank statements, integrating financial forensics into investigative practices.
• Investigating 147 cases and analyzing 910 exhibits using the Centre’s advanced technology.

The specialized training curriculum developed by the Centre has already trained 68 Hawks members in digital and financial forensics, ensuring expertise is spread across multiple regions.

Building Public-Private Partnerships

The partnership between the banking sector and law enforcement is designed to maintain independence while fostering collaboration. Mewalall emphasized the importance of these partnerships:

“Responsible corporate citizens must contribute to building an effective public service that can deliver prosperity for everyone.”

By investing in the DFAC, South African banks are actively contributing to a more robust law enforcement framework, positioning the country for improved economic stability and international credibility.

As South Africa intensifies its fight against financial crime and works to exit the FATF grey list, initiatives like the Digital and Financial Forensic Analysis Centre are pivotal. By leveraging partnerships between the banking sector and law enforcement, the country is equipping investigators with the tools and expertise needed to combat financial crimes effectively.

The success of digital subpoenas, advanced training, and innovative forensic tools marks a new era in South Africa’s approach to law enforcement, ensuring quicker prosecutions and stronger financial accountability.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com