The Financial Action Task Force (FATF) has added South Africa to its list of “greylisted” countries, making the announcement on February 24, 2023. So, what exactly does this mean?
Ray White, Managing Editor of Eyewitness News, explains that South Africa has been asked to “sharpen up” its laws in order to prevent terrorists from using the country as a source of illicit funding. He also points out that the estimated 50 billion rands that were taken out of the country during the State Capture scandal are a major factor in the FATF’s decision.
In October of last year, the FATF came to South Africa and asked the nation to take action. Since then, the nation’s MPs have been working to enact and create laws that meet the FATF’s standards. However, it appears that there is still some way to go before the country is taken off the grey list.
White explains that the international community will now be looking more closely at South African banks and businesses, requiring more due diligence. This means that countries and institutions may choose to invest elsewhere, rather than in South Africa. However, White is quick to point out that the FATF’s decision does not mean that they are cutting ties with South Africa, or blacklisting them.
Instead, the FATF is working with South Africa to improve the country’s financial laws and regulations. Nigeria, the Philippines, Haiti, and South Sudan are facing similar scrutiny and support from the FATF.
The process of getting South Africa off the grey list may take some time, but White is confident that the nation will be back amongst the 39 countries in good standing soon. In the meantime, South Africa must continue to work to meet the FATF’s standards.
Tags: EWN Ray White