The National Prosecuting Authority (NPA) has taken a decisive step in South Africa’s battle against money laundering and illicit financial flows, seizing R52.5 million in Namibian bank accounts tied to illegal coal mining operations in Mpumalanga. The funds were frozen in collaboration with the Namibian Financial Intelligence Centre (Nam-FIC) and the Namibian Prosecutor-General’s office.
The seizure targets Jacobus Hosea Jordaan and his wife Elza, accused in the Carolina illegal coal mining case. The case, involving charges of money laundering and environmental crimes, has been transferred to the Mbombela High Court for trial in November 2025.
A Major Milestone for FATF Compliance
This operation comes as South Africa faces a January 2025 deadline to demonstrate compliance with FATF requirements to exit the greylist. The greylisting, imposed due to insufficient measures against money laundering, has deterred foreign investment and strained international banking relations.
“This milestone is crucial for addressing FATF’s recommendations, particularly on prosecuting complex money laundering cases,” the NPA noted.
Illegal Coal Mining: A Blatant Operation
Unlike covert illegal gold mining, illicit coal mining in Mpumalanga is a visible operation. Heavy-duty machinery and infrastructure often operate openly, raising suspicions of corruption within the Department of Mineral and Petroleum Resources. Investigators suspect exploitation of loopholes in mining permits, enabling open-pit operations disguised as small-scale ventures.
Transnational Crime and Financial Controls
The seizure underscores the growing importance of financial intelligence in combating transnational crime. Changes to South Africa’s cross-border payment regulations in September 2024 imposed stricter due diligence requirements, addressing gaps exploited by criminal networks.
Broader Implications for Economic Recovery
Exiting the FATF greylist is vital for South Africa’s economic stability. The greylisting has dampened investor confidence, but steps like the NPA’s recent success signal progress in tackling systemic issues.
The R52.5 million seizure also highlights a broader challenge: targeting the masterminds behind illegal mining and financial crimes rather than focusing solely on exploited workers.
Future Outlook
The NPA’s collaboration with Namibian authorities offers a blueprint for combating illegal financial flows and organised crime. However, concerns persist about corruption within regulatory bodies that may undermine these efforts.
