Abstract

This article is the first of two articles on money laundering through trade-finance instruments. Its objective is to examine the problem of trade-based money laundering (‘TBML’) in trade finance under the South African anti-money laundering (‘AML’) regime. The articles seek to establish the level of preparedness of the South African AML authorities in dealing with the problem of TBML in the context of trade finance. The study also examines the legal and operational frameworks governing TBML in trade-finance instruments under South African law. Through a doctrinal analysis of statutes and financial regulations, coupled with a review of enforcement mechanisms, the article identifies systemic gaps in detection, reporting, and interagency coordination. The study further proposes prospects for reform, including leveraging on recent technological advancements, such as data analytics and artificial intelligence, as well as aligning with international best practices from the Financial Action Task Force (‘FATF’). By critically evaluating existing controls and proposing targeted interventions, this research contributes to policy debates on strengthening the South African AML regime in trade finance.