Experts advocate for robust data sharing in SA to crack down on economic crime
This was the scary picture that emerged at a recent Institute of Commercial Forensic Practitioners conference.
Experts from both the private and public sectors hammered home the message that the future of economic crime prevention in Africa hinges on smashing information silos and building airtight data-sharing frameworks.
'Economic crime remains a significant issue in South Africa, with South Africans losing millions due to economic crime,' said Elzé Matthee, researcher and academic trainee at North-West University.
According to the SA Banking Risk Information Centre's 2023 annual crime statistics, an actual loss of R3.35-billion was recorded due to economic crime — on the back of 1.5-million separate criminal incidents.
Meanwhile, the 2024 Transparency International Corruption Perceptions Index indicates that South Africa's score has further dropped by three points since 2019 to a score of 41 out of 100.
South Africa shares the same ranking as Burkina Faso, Kosovo and Vietnam, followed by Colombia at 87th.
The problem is complex, expensive to investigate, and worsened by outdated frameworks that keep private-sector intelligence locked away from those who need it most — the authorities.
Matthee said that one measure to enhance the prevention and detection of economic crime was through information-sharing frameworks in the form of private and public sectors.
What this means going forward
Effective information sharing between the private and public sectors is a critical, yet underutilised, weapon in combating economic crime. Key benefits include:
The private sector holds an extensive pool of information that is often inaccessible to public authorities.
This data supports identifying beneficial owners of corporate structures, verifying customers, monitoring transactions and conducting intelligence-driven enquiries.
Enhanced information sharing strengthens anti-money laundering and counter-financing of terrorism efforts through targeted and timely actions.
It enables faster, more pertinent reporting during ongoing investigations and live incidents, improving responsiveness.
When prioritised within specific private-public information sharing frameworks, it significantly increases the detection and disruption of suspicious activities.
From theory to action
Matthee said that between 4 October and 15 October 2024, South Africa ran 14 coordinated operations targeting corruption, illegal wildlife trafficking and illicit financial flows. More than R189-million was recovered, and the Financial Recovery Committee issued Section 34 directives against 30 individuals linked to money laundering in state-owned enterprises.
These wins, though impressive, represent just the tip of the iceberg — but are proof that strategic data pooling between sectors works.
Significant step forward
The broader institutional landscape has also taken notice.
The National Treasury also recently announced that the Financial Action Task Force confirmed that 'South Africa has substantially completed all 22 action items' that were contained in the action plan adopted when South Africa was greylisted in February 2023. DM
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