South Africa is preparing to enforce stricter penalties for SIM card registration violations as authorities raise alarm over the role of unregistered and fraudulently registered numbers in organised crime.
The issue has gained urgency following an emergency meeting convened by Justice and Constitutional Development Minister Mmamoloko Kubayi, bringing together officials from the Justice, Crime Prevention and Security (JCPS) Cluster, regulators, and telecommunications industry leaders.
The discussions focused on weaknesses in the implementation of the Regulation of Interception of Communications and Provision of Communication-Related Information Act (RICA), legislation designed to ensure that all SIM cards are registered to identifiable users.
SIM card loopholes linked to serious crimes
According to findings presented by the South African Police Service, improperly registered SIM cards are increasingly being used to facilitate a wide range of serious crimes.
These include banking fraud, cash-in-transit robberies, extortion, kidnappings, and contract killings. Police data indicates that unregistered SIM cards are involved in approximately 66% of extortion cases currently under investigation.
Authorities say that gaps in enforcement and weaknesses in registration practices have allowed large volumes of SIM cards to be registered using false or unverifiable information. This has significantly limited law enforcement’s ability to trace suspects or conduct lawful surveillance.
The problem has also enabled criminal activities such as SIM card cloning, identity theft, cybercrime, and money laundering.
Government to enforce tougher penalties from 2026
In response, the government has announced that existing legal penalties will be strictly enforced starting 1 July 2026. These include fines of up to R5 million or prison sentences of up to 10 years for non-compliance.
Kubayi’s spokesperson, Terence Manase, confirmed that a coordinated enforcement approach will involve the police, the National Prosecuting Authority, and other key institutions.
The move forms part of South Africa’s Medium-Term Development Plan (2024–2029), which prioritises the fight against organised crime and financial offences. It also aligns with the country’s preparations for international assessments on combating financial crime and terrorism financing scheduled for October 2026.
Stakeholders at the meeting agreed on several urgent measures, including comprehensive audits of SIM card databases, stronger collaboration between government and telecommunications providers, and a review of existing legislation to ensure it remains effective in a rapidly evolving technological environment.
The rise of eSIM technology was also highlighted as a new challenge requiring updated regulatory frameworks.
Law enforcement agencies have already begun taking action. In January 2025, authorities arrested 29 individuals in Newcastle, KwaZulu-Natal, for illegally registering SIM cards. The operation resulted in the seizure of computers, registration equipment, and thousands of SIM cards.
Officials warn that unless regulatory gaps are addressed, fraudsters will continue to exploit weaknesses in the system to commit financial crimes.
Kubayi emphasised that strengthening SIM card regulation is essential not only for curbing organised crime but also for maintaining public trust, enhancing investigative capacity, and protecting national security.
Source: The Citizen
