UNODC and SAJEI Host Workshop for Judges and Magistrates on Money Laundering and Recovering the Proceeds of Crime

Judge Edwin Molahlehi, Acting Judge President of the Labour and Labour Appeal Court

Sandton, South Africa, 25-27 June 2024 – The United Nations Office on Drugs and Crime (UNODC), under its Global Programme Against Money Laundering, Proceeds of Crime, and the Financing of Terrorism (GPML), in partnership with the South African Judicial Education Institute (SAJEI), convened a three-day workshop with judges and magistrates from Botswana, Eswatini, Lesotho, Namibia and South Africa entitled Regional Roundtable on Integrating Financial Aspects of Organized Crime into Judicial Curricula. The event took place with the objective of enhancing judicial responses in combatting money laundering and illicit financial flows and recovering the proceeds of crime.

Central to the discussions was the recognition of the judiciary’s pivotal role in safeguarding the integrity of court proceedings and ensuring perpetrators of financial crimes are brought to justice with full respect to human rights. During his opening remarks, Judge Edwin Molahlehi, the Acting Judge President of the Labour and Labour Appeal Courts, highlighted the following: “The role of judicial institutions is central in resolving challenges brought by money laundering and illicit financial flows. A synergy between judicial institutions is important for the enforcement of effective anti-money laundering laws and the prosecution of offenders.” Judge Molahlehi pointed out that technology development is crucial to resolving the complexities of money laundering and illicit financial flows and building strong financial systems in Africa.

By some estimates, illicit financial flows from Africa could be as high as USD 50 billion per annum.[1] Another report published in 2020 by the United Nations Conference on Trade and Development (UNCTAD) estimated that USD 88.6 billion leave Africa every year. ojg[1] These figures are approximately double the official development assistance (ODA) that Africa receives and may yet be underestimations given that data does not exist for all transactions and for all African countries. Illicit financial flows negatively impact development in that, amongst other things; they represent reduced tax collection, discourage investment, drain foreign exchange reserves, and worsen poverty.

The discussions also included the importance of enhancing transparency and accountability in mitigating the impact of illicit financial flows on African economies. According to Mr. Hlulani Makwakwa, a Monitoring and Analysis specialist from the Financial Intelligence Centre (FIC), illicit financial flows often take place through trade mispricing, mis-invoicing for services, and abusive transfer pricing to hide illegally acquired wealth, evade taxation, and dodge custom duties and domestic levies. He added that, “Corruption remains the primary driver of illicit financial flows in African countries. Sub-Saharan Africa alone witnesses an alarming statistic where approximately 75 million people annually resort to bribery to access essential services. Moreover, Africa contributes significantly to global human trafficking, accounting for a quarter of all cases and generating an estimated $8.5 billion annually within the region.”

Talking about asset recovery in Africa, Mr. Makwakwa highlighted that African countries should ensure that asset recovery is a priority in their jurisdictions and provide specialized training to judges, prosecutors, magistrates, investigators, law enforcement agencies, revenue authorities, and other government officials. The discussions explored international perspectives on money laundering and asset forfeiture, highlighting global trends, their implications for Africa, and the importance of sharing information and coordinating actions across borders. Ms. Lindy Muzila, Regional GPML Project Coordinator for (UNODC), Regional Office for Southern Africa (ROSAF), cited findings from Mutual Evaluation reports by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) on asset recovery in the region. According to the reports, there are insufficient confiscations taking place in the Southern Africa region, and countries are lagging in terms of management and social reuse of confiscated assets.

Ms. Muzila highlighted that despite these challenges, there has been great progress, especially in the Southern African region. This includes more assets being recovered now than in previous years, largely due to asset forfeiture frameworks being implemented, and the establishment of dedicated offices to deal with asset recovery and asset management.

Mr. Alex Ferguson, a UNODC Consultant, shared case studies regarding the complexities of illicit financial flows. These cases offered valuable insight into effective judicial strategies and difficulties encountered in adjudicating financial crimes.

Participants engaged in rigorous exchanges, examining the extent of non-conviction-based forfeitures, the application of ex parte proceedings, and the complexities of court rules governing asset forfeiture. Proposed actions include strengthening regional judicial cooperation, establishing centralized databases for information sharing, and implementing targeted capacity-building programs to combat the impact of money laundering and illicit financial flows and recovering the proceeds of crime effectively.

United Nations

UNODC ROSAF

UNODC and SAJEI Host Workshop for Judges and Magistrates on Money Laundering and Recovering the Proceeds of Crime

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