SA under pressure to keep combatting terrorism

South Africa appears to be on a path of significantly tightening laws around financing terrorism. This is because of significant international pressure for the country to stay off the grey list. 

An Amendment Bill currently before Parliament would tighten regulations around non-profit organisations (NPOs) funding terrorism. 

The Financial Action Task Force (FATF) – the international organisation that sets global standards for combatting terrorist financing, money laundering, and financing the proliferation of weapons of mass destruction – continues to push South Africa to stay off its grey list, according to terrorism expert Willem Els. 

He says this pressure has forced the country to “up its game” in targeting financial crimes. 

South Africa was placed on the grey list in February 2023 due to systemic shortcomings in stopping money laundering and terrorist financing. Being on the list for more than two years harmed investor confidence in the country. It was removed from the list on 24 October 2025, after 32 months of enhanced international monitoring. 

Els believes there is a big drive and motivation within the Directorate for Priority Crime Investigation (known as the Hawks) and other law-enforcement bodies to tackle money-laundering and terrorist-related crimes. This is because amendments to South Africa’s terrorism laws have given the authorities more power and backing to investigate and act. 

“These guys are working hard and they’re not afraid to ask for help,” Els says, explaining that he is engaging intensively with authorities and experts, who want to abide by the FATF requirements and improve South Africa’s legislation. 

However, fellow terrorism expert Professor Hussein Solomon is less positive. 

“Yes, South Africa doesn’t want to be on the grey list. But the big problem is implementation and political will,” he says. “The government meets with representatives of Hamas and Hezbollah. These are not terrorist organisations for them. Now, what do you do there?” he asks rhetorically. 

In addition, “[The] Madlanga [Commission] proves that we don’t have a department of homeland security,” says Solomon. “What is very clear is that our entire security services are compromised.” 

He says organised crime and corruption have allowed terrorist organisations to exploit South Africa. “ISIS franchises on the African continent get money from these activities in South Africa. It makes us vulnerable, and I think our vulnerability still is there.” 

Therefore, he feels that South Africa’s actions may be “window dressing”. 

“If you don’t have the right people in the right places, you’re in trouble, irrespective of what laws you tighten up,” says Solomon. 

But Els believes that several terrorism cases in the courts at the moment could have positive outcomes and prove that the state is acting. 

The first is known as the “Sharia Law case”. In June, South African authorities greenlit formal terrorism charges against eight suspects tied to an ISIS-linked “Sharia court” network in Johannesburg. The underground structure used religious dispute resolution and arbitration as a front to run extortion and kidnapping rings, which targeted foreign-owned businesses. The case is expected to move to the Gauteng High Court. 

“This is a strong case, with the legislation backing it,” says Els. “There may be more arrests.” 

The second case, known as the “Lichtenburg case”, involves Ziyadh Hoorzook, who is accused of financing terrorism. The Hawks and the Financial Intelligence Centre allege that in November 2017, Hoorzook used a local platform to purchase and transfer Bitcoin worth R11 500 to a charity wallet overseas that was flagged as a front for a terrorist organisation in Syria. 

He was granted R30 000 bail by the Lichtenburg Magistrate’s Court in January 2025. Hoorzook is facing counts under the Protection of Constitutional Democracy Against Terrorist and Related Activities Act (POCDATARA), alongside additional allegations regarding the Firearms Control Act and the Regulation of Foreign Military Assistance Act. He intends to plead not guilty, claiming the crypto transfer was an innocent charitable donation. 

However, Els says FATF pressure means the state is obligated to investigate the case fully, and it could be a key test of South Africa’s financial compliance mechanisms. 

The third ongoing case is known as the “Kliprivier case”. In July 2020, security forces raided a smallholding in Kliprivier, south of Johannesburg, arresting suspects linked to a kidnapping syndicate and an ISIS funding and support network. Security sources tied the cell to the funding of international terrorism and local organised crime. 

The defendants now face terrorism-related charges alongside counts of kidnapping, murder, and extortion. 

The case has been transferred to the Gauteng High Court in Johannesburg, where the accused are scheduled to appear on 27 November 2026. Els is also positive about the outcome of this case. 

However, he concedes that the fight against terrorism is sometimes being hindered “from the top”. For example, in the case of murdered British couple Rodney and Rachel Saunders, charges of terrorism could easily have been brought against the perpetrators, he says. The killers gave Rachel’s credit card details to an associate in Rotterdam, who purchased Bitcoin that was sent to ISIS. That associate has since been charged and imprisoned. However, the terrorism charges were dropped because of instructions “from above”, says Els. The case would have been an ideal opportunity to show that South Africa takes terrorism seriously. 

He says there are several other cases still under investigation. “It’s slow, because of a lack of resources, and authorities are in the process of capacity building. But they are now equipped with better legislation, and the turnaround has definitely started.” 

The legislation that’s been beefed up includes an amendment to POCDATARA at the end of 2022, updating anti-terrorism laws to meet the international standards set by the FATF and the United Nations. 

Also in 2022, the Financial Intelligence Centre Act was significantly updated, expanding the list of accountable institutions like crypto asset service providers, and tightened beneficial ownership tracking, to meet FATF standards. 

In January 2026, National Treasury published the draft General Laws Amendment Bill, in terms of the Anti-Money Laundering and Combating Terrorism Financing framework, for public comment in the Government Gazette. 

National Treasury expanded on the draft Bill to incorporate amendments related to nongovernmental organisations and NPOs, and the conducting of lifestyle audits. 

The draft Amendment Bill was developed together with the Department of Trade, Industry and Competition; the Department of Social Development; the Financial Intelligence Centre; and financial sector regulators. 

This Bill has been introduced to Parliament and resides with the Standing Committee on Finance (SCOF). That committee invited stakeholders, interested parties, and the public to submit further written comments by 10 August. 

Els says if Parliament passes this Bill, it will further strengthen anti-terrorism legislation. 

National Treasury’s deputy director-general for tax and financial sector policy, Chris Axelson said in June that “South Africa’s biggest risk of being grey listed again lies not in gaps in its laws, but in proving that those laws work.” 

He told the SCOF the country has entered an 18-month FATF mutual evaluation, with the first set of key reports due in July and October 2026, and an on-site visit in March 2027. 

One focus of the draft Amendment Bill is the FATF’s “Recommendation 8” on NPOs, where South Africa was rated only “partially compliant”. The FATF found that not all NPOs exposed to terrorist-financing risk were covered by the NPO Act, that penalties were unclear, and that there was no enabling mechanism for action when suspicions arose. 

National Treasury said the FATF doesn’t want blanket controls over the whole NPO sector. Rather, it expects focused, proportionate, and risk-based measures aimed at organisations that may be vulnerable to terrorist-financing abuse. 

Axelson said that if the Bill went through before November, it would assist South Africa’s ratings with the FATF.