This article will count 0.25 units (15 minutes) of unverifiable CPD. Remember to log these units under your membership profile.
In 2019, former Bosasa COO Angelo Agrizzi made headlines when he exposed how the company used fake invoices and bribery to secure government contracts worth billions.
He later pleaded guilty to corruption and money laundering, but maintained that his salary and bonuses were legitimately earned. He believed his pension was protected, and he wouldn’t be held financially responsible for the entire corruption scheme.
However, on 29 October 2026, the Gauteng High Court rejected his arguments and ordered him to pay the state more than R1.66bn, plus interest.
Read more: Agrizzi ordered to pay R1.67bn in Bosasa corruption case
The ruling shows how even ordinary salaries, bonuses, and pension benefits can become proceeds of crime when they're linked to corruption. But what about the accountants who process these payments, prepare financial records, or advise the businesses involved? Could they also be held personally liable?
This guide explains when payments can become proceeds of crime, how your involvement could put you at risk, and what to do if you suspect a client's money comes from illegal activities.
What counts as proceeds of crime?
If you handle a company's payroll, a salary or bonus might look like a perfectly normal transaction. But if that payment is linked to money the company earned illegally, it could be considered proceeds of crime, even if it's recorded as ordinary remuneration.
Under the Prevention of Organised Crime Act 121 of 1998 (POCA), proceeds of crime can include money, property, services, and other benefits linked to illegal activities, even when they're received indirectly.
In 2006, businessman Schabir Shaik faced a similar problem. He'd made corrupt payments to politician Jacob Zuma, who used his influence to help Shaik's business interests.
One of Shaik's companies, Nkobi Investments, owned shares in Thint (formerly Thomson-CSF), which had a stake in arms supplier African Defence Systems. Shaik and his companies argued that benefits received indirectly through company shares shouldn't be included in the confiscation orders.
However, the Supreme Court of Appeal ruled that benefits gained indirectly through company shares, including dividends, could still count as proceeds of crime.
This means that the law looks at where a financial benefit came from, even if it passed through several companies or was paid as ordinary income.
Who can be held responsible for corrupt payments?
So, we know that money earned through illegal activities can be considered proceeds of crime. But does that mean everyone who receives or handles this money is guilty?
Imagine you're processing payroll for a company that wins government contracts by bribing officials. At the end of the month, you pay salaries and bonuses as usual, completely unaware of the corruption happening behind the scenes.
Two executives receive payments. One, let's call him Mario, is actively involved in the corruption, much like Agrizzi was at Bosasa. The other, Johnny, has no idea what's happening.
So, who's responsible?
Mario can be held liable because he knowingly participated in the corruption and benefited from it.
Johnny, on the other hand, isn't automatically guilty. Receiving a salary from a corrupt company doesn't make him criminally responsible when he had no knowledge of the wrongdoing and no reason to suspect it.
This means that even if two people receive money from the same corrupt company, their personal liability depends on what they knew and how they were involved in the illegal activity.
When is the accountant responsible?
Simply processing payments for a corrupt company doesn't make you guilty when you're unaware of the illegal activity and have no reason to suspect it.
However, this changes if you know, or reasonably should know, that you're handling proceeds of crime and your actions help conceal the money or allow someone to benefit from it.
Under POCA, accountants can face criminal liability if their knowledge and actions meet the requirements for a money laundering offence.
Imagine you're processing your company's monthly payments and notice that several employees receive their salaries into the same bank account. Some don't even have employment contracts or personnel records.
You also notice large payments to suppliers for consulting services, but there's no evidence that any work was done. When you question the payments, your manager tells you to process them anyway and stop asking questions.
These are warning signs that something could be wrong.
Under POCA, what you should reasonably have known is judged against the knowledge, skills, and experience expected of someone in your position.
This means you can't simply ignore suspicious transactions and claim you didn't know what was happening. If you overlook warning signs and continue processing payments that help conceal or move criminal proceeds, you could face criminal liability.
What can an accountant be charged with?
If you're convicted of helping move or conceal money from illegal activities, the penalties can be severe. A conviction for money laundering or related offences can result in a fine of up to R100 million or imprisonment for up to 30 years.
In October 2024, Durban accountant Amanda Lowton was sentenced to 10 years in prison after pleading guilty to fraud and money laundering. She'd approved fake invoices and was involved in a scheme that diverted more than R122 million from her employer into bank accounts belonging to her husband.
Read more: Durban accountant jailed for money laundering
You could also face a confiscation order if the court finds that you personally benefited from the crime or related criminal activities.
For example, let's say you knew about the corruption and paid yourself a bonus from the proceeds of the scheme, alongside Mario and Johnny.
If you're convicted and the court finds that your bonus was a benefit of the criminal activity, you could be ordered to repay its value to the state. This payment would be in addition to any fine or prison sentence imposed for your offence.
What to do when you discover suspicious payments
Let's say you notice suspicious activity in a client's accounts and you don't want any part of it. What should you do?
You don't need to prove that a crime has taken place before reporting your suspicions. Under the Financial Intelligence Centre Act, businesses and their employees must report transactions they know or reasonably suspect involve proceeds of crime or other suspicious activities covered by the Act.
You can submit a suspicious transaction report (STR) through the FIC's goAML reporting portal. If you're reporting independently, you'll need to register first. If you work for a registered accountable institution, follow its internal reporting process.
Your report should explain what raised your suspicion, identify the transactions and people involved, and provide the relevant details and supporting information.
Reports must be submitted as soon as possible, and no later than 15 working days after becoming aware of the facts that raised your suspicion. If you work for an accountable institution, such as a bank or an accounting practice that provides company formation services, follow its internal reporting procedures.
If you're a company director, manager, or partner in an accounting practice, you could also have a separate duty to report suspected corruption or fraud involving R100,000 or more to the Hawks under the Prevention and Combating of Corrupt Activities Act. Reporting to the FIC doesn't replace this obligation.
It's important that you don't alert the client or anyone involved in the suspicious activity that a report has been or will be submitted. This is known as tipping off, and it's prohibited by law because it could give someone the opportunity to destroy evidence, move money, or interfere with an investigation.
If the suspicious activity turns out to be perfectly legal, you're still protected by law, provided you reported your concerns honestly and in good faith. Your employer also can't legally dismiss or punish you for making a report that qualifies for protection under the law.
In other words, you could get into trouble for failing to report suspicious activity, but you won't face legal penalties simply because you reported something that turned out to be innocent.
How reporting protects you
Reporting can also provide an important legal defence. If you're later accused of helping a client launder money, and you're charged with a money laundering offence, you can raise the fact that you reported your knowledge or suspicion to the FIC as a defence.
This doesn't automatically protect you from prosecution or excuse deliberate involvement in criminal activities. But it can help you demonstrate that you recognised the suspicious activity and took steps to report it, rather than ignoring it.
Walking away from a suspicious client doesn't end your reporting obligations either. Have a look at our guide to spotting red flags in cash clients, which explains what to look out for and when a report is required.
If you want to check that your own reporting process would hold up, have a look at CIBA's Knowledge Centre, which includes a Guide on Anti-Money Laundering for Accountants and an FIC Registration and Reporting Guide.
If you’re a CIBA member, you can download them for free from your myciba.org dashboard. Otherwise, sign up here to get access to this and more.
Trending
