Client identification and money laundering control : perspectives on the Financial Intelligence Centre Act 38 of 2001

The Financial Intelligence Centre Act 38 of 2001 (FICA) compels certain persons and institutions (defined as "accountable institutions'') to identify and verify the identity of a new client before any transaction may be concluded or any business relationship is established.1 Accountable institutions are listed in schedule ¹ to FICA and include banks, brokers, financial advisers, insurance companies, attorneys and estate agents. This duty to identify new clients came into effect on 30 June 2003. However, FICA also requires a similar procedure to be followed in respect of all current clients. Current clients are those with whom an accountable institution had business relationships on 30 June 2003.² After 30 June 2004 an institution may not conclude a transaction in the course of its business relationship with an unidentified current client, until it has established and verified that client's identity as prescribed. An institution that concludes any transaction in contravention of this prohibition, commits an offence and is liable to a fine not exceeding R10 million or to imprisonment of up to 15 years.³

The majority of accountable institutions and their clients failed to meet the June 2004 current client identification deadline.4 This failure posed serious economic and legal risks. With a few days to spare, the minister of finance granted a partial and temporary exemption in respect of these requirements. This article explores the statutory scheme for identification and re-identification of clients and some of the practical problems that were encountered. The June 2004 exemptions from these requirements are also considered and proposals for law reform are made.

The discussion of the FICA identification scheme necessitates the following brief overview of the international and South African money laundering control framework.

1 s 21(1) of FICA.
2 s 21(2) of FICA. See also s 82(2)(b).
3 s 46(2) of FICA read with s 68(1) of FICA.

Identification and rationalization of secondary twin variants in a magnesium alloy

The present work combines electron backscatter diffraction, transmission electron microscopy and Schmid analysis to investigate secondary twinning in the magnesium alloy Mg-3AI-1Zn. Inspection of the misorientations between the parent matrix and {1011} - {1012} doubly twinned volumes reveals that there are four possible variants. One of these variants characterized by 38°< 1210 > misorientation with the matrix is favoured much more than the others. This variant involves activation of the secondary twinning systems that are quite inconsistent with the Schmid-type behaviour. For the secondary twin to grow significantly it must take on a shape enforced by the primary twin, however, this is not optimal for strain compatibility. It is argued that the 38° < 1210 > variant occurs most frequently because it provides the closest match between the primary and secondaty twinning planes, thus minimizing the compatibility strain. This conjecture is confirmed by the simulations of twin activity m ellipsoidal grains performed using the visco-plastic self-consistent crystal plasticity model.

Identification and characterization of genes conferring salt tolerance to Escherichia coli from pond water metagenome

Metagenomics provides culture-independent access to gene pool of the whole microbial communities. To identify genes responsible for salt tolerance in unculturable bacteria, Escherichia coli clones were enriched with an ability to grow at inhibitory NaCl concentrations (750 mM) from a pond water metagenomic library. From two unique clones, genes encoding for proteins with similarity to a putative general stress protein (GspM) harbouring GsiB domain and a putative enoyl-CoA hydratase (EchM) were identified to be responsible for salt tolerance. The gspM was expressed by its native promoter whereas the echM was expressed from the lacZ promoter of the plasmid. EchM was overexpressed with a hexahistidyl tag. Purified EchM showed crotonyl-CoA hydratase activity. These genes have potential application in generating salt tolerant recombinant bacteria or transgenic plants.

Relationship of body condition score, live weight, stocking rate and grazing system to the mortality of Angora goats from hypothermia and their use in the assessment of welfare risks

Body condition scoring is widely used for sheep and cattle but the practice is included in only one Code of Practice for the welfare of goats in Australia. There is no published scientific evidence to support or defend its use in the assessment of welfare risks to farmed goats.

PROCEDURE: The significance of stocking rate, grazing system, body condition score (CS) and live weight were investigated in explaining the risk of mortality of individual and flocks of grazing Angora goats from hypothermia following a severe weather event in April. This event occurred 5 weeks after shearing the goats. Angora goats and Saxon Merino sheep were grazed alone, or mixed together in equal numbers at each of three stocking rates.

RESULTS: There was no mortality amongst Angora goats provided they grazed at the lowest stocking rate even when their CS was < or = 2.0. Mortality in flocks of Angora goats was most related to the CS reached during the preceding 2 months. For flocks of Angora goats there was no mortality at CS > or = 2.5 and mortality increased sharply at mean CS < 2.0. For individual Angora goats, mortality increased as CS declined and stocking rate and grazing combinations were additive in effect on mortality. Grazing with sheep increased mortality of Angora goats at higher stocking rates. The individual goat mortality rate was not dependent on individual plot effects suggesting that these results are applicable widely. Live weight loss was not related to mortality rates of goats once CS had been accounted for.
CONCLUSION: It was concluded that CS and stocking rate were highly significant determinants of welfare risk in Angora goats.

Identification and classification of animal fibres using artificial neural networks

It has been an important and challenging task to classify and evaluate the contents in wool blends. Quantitative characterisation of animal fibre scale patterns has attracted considerable attention, since it is the major evidence for identification and subsequent classification purpose. Although techniques such as imaging processing and linear demarcation functions have been used to identify unknown fibre type with some success, a more comprehensive approach is required to perform this task. In this paper, a new approach is presented, which employs non-linear demarcation functions by using an artificial neural network (ANN). Based on scale pattern features extracted by using image processing techniques the artificial neural network (ANN) model is to classify mohair and merino fibres. It is observed that the techniques developed in this work are very effective and have the potential to be applied to other animal fibres.

Identification and characterisation of novel compound(s) for the treatment of type 2 diabetes

The thesis shows that a plant extract favourably affects glucose utilisation and production in vitro, and identifies genes/biological pathways involved in its actions. The extract underwent fractionation and screening for effects observed. Chemical studies of active fractions led to the isolation of a compound shown to have potential anti-diabetic properties.