Terrorist Financing Risks in South Africa: Why No Institution Is Immune
- Gatekeeping Consulting
- Oct 2, 2025
- 2 min read
(Discover how South African businesses face terrorist financing risks in property, crypto, and trade. Learn why due diligence is essential.)
Many South African institutions assume that because they mostly serve a local, South African–domiciled client base, they are not exposed to terrorist financing (TF) risk — or that the risk is negligible. This assumption is dangerous. Both South African law and international standards define terrorism and terrorist financing very broadly. Add to this the reality of large diaspora communities in South Africa and the ease of local and cross-border transactions, and the exposure becomes very real.
What Is Terrorist Financing?
In simple terms, terrorist financing refers to the providing, collecting, moving or using of funds or assets — by any means — where those resources are intended to be used, or could reasonably be suspected of being used, to:
commit or plan terrorist acts, or
support terrorist organisations.
Funds don’t have to be cash. They may include property, vehicles, art, precious metals, real estate, or crypto assets. Because these transactions often look like normal financial activity — donations, transfers, trades, property deals, or cryptocurrency conversions — terrorist financing frequently hides in plain sight.
Terrorist financing is a very big industry and terrorist organisations require extensive funding - read more here
Who Is at Risk?
The wide ambit of terrorist financing means that it is not only banks and cross-border payment providers that face exposure. A much broader range of businesses and professionals are vulnerable, including:
Real estate agencies and attorneys involved in property sales or rentals
Dealers in movable property (vehicles, boats, aircraft, art, jewellery, precious stones)
Crypto asset service providers and fintech platforms
Professionals facilitating cross-border or high-value transactions
Any institution that fails to consider these risks may unknowingly become a conduit for terrorist financing — whether the assets are located in South Africa or abroad.
Why Due Diligence Matters
Every organisation must carefully assess:
Who all parties to a transaction are (clients, beneficiaries, recipients)
What the true purpose of the transaction is
How funds or assets are being moved
Applying robust customer due diligence (CDD) and enhanced due diligence (EDD) is the best safeguard against unwitting involvement in terrorist financing.
Final Word: Better Safe Than Sorry
Terrorist financing risk is not limited to banks. It affects all types of institutions, from real estate agencies to asset dealers to crypto platforms. By strengthening due diligence and compliance frameworks, you reduce your risk of regulatory penalties — and help protect your organisation from reputational and legal harm.
Don’t assume immunity. Review your exposure, update your risk assessments, and take proactive steps to strengthen your defences.
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