By Chantelle Muzanenhamo
The Southern African Development Community (SADC) is ramping up efforts to strengthen financial integrity and spur sustainable economic growth in the region.
This initiative is driven by the Strengthening National-Regional Linkages (SNRL) Programme, supported by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
In a recent announcement on the official SADC website, the organization emphasized the critical importance of public awareness regarding regional integration initiatives that combat pressing challenges such as money laundering, terrorism financing, and proliferation financing.
SADC is committed to raising awareness of the benefits of its integration initiatives, which are vital for addressing these pressing financial crimes.Central to this initiative is the SADC Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Committee, which was established in 2023 under the SADC Protocol on Finance and Investment.
The Committee, in collaboration with the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Secretariat, is leading regional strategies aimed at mitigating the effects of financial crimes on economies and communities.
At the recent 2nd meeting of the SADC AML/CFT Committee, which took place in Mahe, Seychelles, members reviewed proposed amendments to the SADC Protocol on Finance and Investment. Chaired by Mr. Clement Kapalu, Director General of the Financial Intelligence Unit of Zambia.
The meeting addressed critical updates needed for effective implementation.New amendments include the consideration of proliferation financing as an emerging risk, the incorporation of Illicit Financial Flows (IFF) in national risk assessments, and alignment with the African Union Convention on Preventing and Combating Crime. Improved definitions for key terms such as ‘beneficial owner’ and ‘unexplained wealth’ were also proposed to clarify legal frameworks across Member States.
The establishment of the SADC AML/CFT Committee marks a significant commitment by Member States to combat money laundering and terrorism financing.
By strengthening the regional framework, the organization invites dialogue and deeper collaboration among stakeholders committed to safeguarding financial integrity.Additionally, the Chair highlighted the necessity of integrating Financial Action Task Force (FATF) Recommendations into the AML/CFT frameworks of all Member States.
Notably, Mauritius has successfully adopted all 40 FATF Recommendations, while five SADC Member States are currently grey-listed by FATF due to framework deficiencies.To address these shortcomings, the SADC AML/CFT Committee is encouraging collaboration among Member States, along with support from international partners, including the EU Global Facility on Anti-Money Laundering and Countering the Financing of Terrorism.The reviewed Annex 12 of the Protocol will be submitted for consideration at the next SADC Ministers of Finance and Investment meeting scheduled for June/July 2025 in Zimbabwe.
As the region faces the complexities of modern financial crimes, the collaboration between Member States, stakeholders, and development partners reinforces the need for a unified and proactive stance in combating illicit financial activities and promoting sustainable economic growth across Southern Africa.