South Africa's grey listing has highlighted the urgent need for organisations to go beyond technical compliance and cultivate a deeply embedded risk-aware, ethical culture that combines technology with human accountability. XTND CEO Servaas du Plessis stresses that true resilience against fraud and regulatory scrutiny requires leadership-driven governance, continuous education, and a shift from reactive controls to proactive, values-based decision-making.
17 NOVEMBER 2025 – Johannesburg. South Africa’s grey listing has exposed not just gaps in technical compliance, but a deeper challenge that sits at the heart of business practice: the need to build organisations that are not merely compliant, but consciously ethical.
Servaas du Plessis, Chief Executive Officer, XTND, says that while technology can automate controls, only culture sustains them: “We need to go beyond compliance and build a risk-aware culture. There is increased scrutiny following the grey listing and this has forced organisations to reassess their approach to risk and compliance.”
Contributing factors to the high levels of fraudulent activity locally includes digital transformation, and the accelerated adoption of digital technologies, creating new vulnerabilities that fraudsters can exploit. Tied to this are systemic vulnerabilities, where there are clear gaps in the systems and controls used to combat fraud, making South Africa a prime target. In addition, the country’s volatility: environmental, geopolitical, and financial pressures have created a volatile risk landscape that complicates fraud prevention efforts.
Meeting new regulatory expectations requires more than better systems—it calls for an organisational mindset that values ethical conduct as a competitive advantage. Du Plessis says that a risk-aware culture integrates ethical decision-making into daily operations: “This is where employees understand the purpose behind compliance, not just the process. Organisations that embed accountability, transparency, and continuous learning throughout their teams tend to experience fewer compliance breaches and higher resilience to fraud.”
It is about bridging the gap between technology and humanity, and du Plessis says that their solutions represent more than just technological progress – it underscores the importance of empathy in corporate settings. For example, by leveraging voice analysis technology to better understand emotional states, companies can shift their focus from reactive problem-solving to proactive support systems thereby avoiding any systematic issues further down the line. This approach speaks to building healthier and more sustainable workplaces.
For South Africa’s labour market, where mental health struggles and socio-economic disparities are deeply intertwined, such tools are not just beneficial – they are essential. As industries globally wake up to the importance of emotional well-being, it is important to consider the South African context, demonstrating how data-driven insights can transform workplaces and lives alike.
Locally, economic crime is a fraud hot spot that continues to be a significant challenge. This reality underscores the need for businesses to move beyond reactive compliance and toward proactive risk management—supported by a culture that empowers employees to speak up and act responsibly.
Key fraud in South Africa includes cybercrime and digital fraud where a high rate of digital fraud, particularly in sectors like telecommunications and financial services are recorded. Procurement fraud poses another significant threat, particularly in South Africa, affecting both public and private sectors, and is one of the top three most disruptive economic crimes globally. There is also a rise in social engineering scams, including phishing, vishing, and SIM swap fraud, which are all major concerns. Synthetic identity scams, where fraudsters create false identities by manipulating personal data, have increased dramatically, while fraud in public institutions like SASSA and Home Affairs are popular due to systemic vulnerabilities leading to opportunistic fraud.
The interplay between risk and fraud presents a significant challenge for organisations of all sizes and industries. The cornerstone in the fight against financial crime is the Financial Intelligence Centre (FIC). Its rigorous compliance requirements – aimed at preventing money laundering, terrorist financing and other illicit financial activities – place a significant responsibility on accountable institutions. From banks and insurers to fintech start-ups and property practitioners, each organisation plays a pivotal role in protecting the country’s financial infrastructure. This responsibility transcends regulatory adherence; it is a central expression of responsible citizenship.
It is here that the role of leadership is important as it sets the emotional temperature of an organisation. “When leaders model transparency, consistency, and ethical integrity, they establish a tone that cascades throughout the business. Ethical governance begins when executives embody the standards they expect from others,” explains du Plessis.
Conversely, when leadership fails to align behaviour with stated values, employees lose trust, and compliance efforts become superficial. Senior management involvement in fraudulent activities has seen an upsurge in economic crimes, which is particularly damaging due to their ability to override internal control. Leaders who champion integrity and open communication foster trust and accountability—key ingredients in preventing misconduct and financial crime.
Continuous education and cyber awareness are needed because fraud and cyber threats evolve constantly, driven by new technologies and increasingly sophisticated criminal methods. Protecting an organisation requires ongoing education that keeps employees alert to emerging risks and equips them to act responsibly.
Training should reach all levels of staff, not only compliance and audit teams. When employees understand how their actions connect to the broader security and ethical posture of the company, they become active participants in fraud prevention rather than passive observers.
As South Africa continues to navigate heightened regulatory scrutiny, resilience against white-collar crime will depend not just on stronger systems but on stronger values. The future of compliance lies in organisations that combine technology with trust—where ethical behaviour, accountability, and risk awareness are not policy requirements but shared instincts. Ends.
About Servaas du Plessis: XTND - Chief Executive Officer
Before establishing XTND, Servaas was Chief Executive Officer of First Rand Short Term Insurance Administration and Summit Insurance Administration Services in the First Rand Group.
Servaas has 40 years of experience in combatting white-collar and organised crime. He joined the financial services sector in 1995 after resigning as commander of an organised crime division of SAPS specialising in uncovering criminal activities of foreign syndicates operating in South Africa.
Servaas is amongst others, a certified fraud examiner. He was named the Worldwide Who's Who Executive of the Year in Insurance Crime & Fraud Prevention in 2013 and the winner of the Africa CEO Today award in the category Fraud Risk Prevention in 2020. He co-founded the South African Insurance Crime Bureau and is the past president of the South African Chapter of the Association of Certified Fraud Examiners.
Servaas is the inaugural chairman of the Danie Du Plessis Foundation board and a non-executive Director of the Africa Training Academy (AFRICATA). He received the Honorary Member of the Year award from the ACFE South Africa in 2020.