Greylisting

The greylisting of South Africa by the Financial Action Task Force (FATF) is a damning indictment of our criminal justice system and the government's ...

Government must take a comprehensive and collaborative approach to address the remaining concerns of FATF by taking coordinated action across departments and institutions – from the prosecuting authorities to the Hawks, the Financial Intelligence Centre, the Department of Home Affairs, police, SARS, and others. The greylisting has placed our nation at significant risk, as the rest of the world now views South African companies and individuals as high-risk counterparties in global transactions. The greylisting of South Africa by the Financial Action Task Force (FATF) is a damning indictment of our criminal justice system and the government’s inability to combat financial crimes such as money laundering and terrorism financing.

This is for failing to adequately tackle illicit financial flows, through the relevant legislation and measures to prevent possible money laundering and terror- ...

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South Africa will now be under increased monitoring, the Paris-based international financial crimes watchdog confirmed on Friday — days after Finance Minister ...

International banks will also be more likely to reject South African clients on compliance cost and risks. The watchdog has pointed to a need to increase criminal investigations, prosecutions and asset recovery in money-laundering and terror-financing cases. Since then, South Africa has made significant progress on many of the recommended actions to improve its system, FATF said. “This will, however, be monitored closely. [money laundering](https://mg.co.za/tag/money-laundering/) and [terrorist financing](https://mg.co.za/tag/terrorist-financing/). [state capture](https://mg.co.za/tag/state-capture/), the effectiveness of which is essential to addressing crime and corruption,” the statement said.

South Africa has been greylisted by the Financial Action Task Force, an intergovernmental body that sets global standards to combat money laundering and ...

In a statement on Friday afternoon, the group said that Nigeria and South Africa have been added to the grey list. A report by research firm Intellidex "Government recognises that addressing the action items will be in the interest of South Africa, and that doing so is consistent with our existing commitment to rebuild the institutions that were weakened during the period of state capture, the effectiveness of which is essential to addressing crime and corruption," he said in a statement. Eight areas of improvement were identified. In response to the announcement on Friday, Godongwana said South Africa would work to "swiftly and effectively address all outstanding deficiencies and strengthen the effectiveness of its anti-money laundering and counter-terrorist financing regime". - The decision is expected to hike the cost of doing business in the country.

The rand tanked to R18.42 on Friday (24 February) following the Financial Action Task Force (FATF) officially adding South Africa to the global grey list.

In October 2021, FATF members visited Mauritius and met the government, financial sector associations and bank representatives. Most of the fallout from the listing would be for businesses conducting international transactions, he said: costs and admin will go up, and it might be a deterrent to multinationals looking to set up shop in the country. However, the Mauritian government responded decisively. Several countries require their institutions to apply the ‘enhanced due diligence’ of SA counterparts. Mauritius took a blow when it was greylisted in February 2020. The rand has been trading under pressure all week but caught its breath following a better-than-expected budget speech on Wednesday.

South Africa had been under pressure to strengthen its financial controls with fears over the illicit transfer of funds.

At a time when our economy is being destroyed by load shedding this latest development is just another nail in the coffin." This is despite recognising that the country’s made a high-level political commitment to meet its standards to combat money laundering and terrorist financing. JOHANNESBURG - Following the greylisting of South Africa by the Financial Action Task Force (FATF) on Friday, opposition parties said the development came as no surprise and is a reflection of a failing government.

FATF said the South African government had made high-level political commitment to work with it and the Eastern and Southern Africa Anti-Money Laundering Group ...

“The government must commit to rebuild institutional capacity, processes and systems in key parts of the supervisory, investigation and prosecution services. This will affect South Africa’s international relationships in many ways, ultimately resulting in a reduced appetite for business relationships with South African associates.” “The greylisting has placed our nation at significant risk, as the rest of the world now views South African companies and individuals as high-risk counter-parties in global transactions. This will have significant implications for South Africa’s economy, ranging from less than 1% to 3% reduction in GDP, depending on how quickly we can exit the greylist. [ESAAMLG](https://www.esaamlg.org/)) to strengthen the effectiveness of its anti money laundering and combating financial terrorism measures. [country’s greylisting](https://mg.co.za/business/2023-02-24-despite-progress-south-africas-greylisting-is-in-black-and-white/) by the [Financial Action Task Force](https://mg.co.za/tag/financial-action-task-force/) (FATF) a damning indictment on the criminal justice system and the government’s inability to combat financial crimes.