Durban Accountant Jailed for Money Laundering: What Accountants Need to Know
A 52-year-old Durban based accountant was sentenced to 10 years in prison after pleading guilty to fraud and money laundering charges. Amanda Lowton was convicted of 105 counts of fraud and laundering over R122 million in company funds.
The Details of the Case
Lowton’s crimes began in 2012 while she was working as an accountant for a KwaZulu-Natal company. She approved fictitious invoices submitted by her husband, Mark Lowton, paying over R1.8 million into his business account. After resigning in 2017, her replacement uncovered additional fraudulent payments disguised as remittances to the South African Revenue Service (SARS). Instead of going to SARS, the funds—totaling over R122 million—were redirected to four accounts linked to Mark Lowton. Of this, nearly R47.5 million was retained while a portion was used to pay company suppliers.
What Is Money Laundering?
Money laundering is taking the proceeds of illegal activities - predominantly cash, or stolen funds - and making it appear legal proceeds. In this case, payments were falsely labeled as business transactions to mask their fraudulent nature.
The Responsibilities of Accountants When Suspecting Money Laundering
Accountants play a key role in detecting and preventing financial crimes. If you encounter suspicious activity, here’s what to do:
Watch out for red flags such as unusual patterns, such as payments to unfamiliar accounts, invoices from non-existent vendors, or discrepancies in financial records.
Report suspicious activity by filing a Suspicious Transaction Report (STR) with the Financial Intelligence Centre (FIC). Reporting is a legal obligation under the Financial Intelligence Centre Act (FICA).
Protect confidentiality, avoid alerting the suspected individual, as this could compromise the investigation.
Strengthen internal controls, implement robust financial oversight, including regular verifications and a segregation of duties when approving payments to reduce the risk of fraud.
Stay educated and up to date on money laundering indicators and regulatory requirements to ensure compliance and proactive action.
Why Reporting Matters
By reporting suspicious transactions, accountants help prevent financial crimes and protect their organisations from severe losses. Filing a report with the FIC is not only a legal requirement but also a critical step in combating money laundering and fraud.
For more information on how to file an STR, read CIBA’s FIC registration and reporting guide under your member profile or refer to the FIC’s Guidance Note 4B.
