24 February 2023, 3:00 PM |South Africa has been added to the Financial Action Task Force ’s “greylist,” which means the country will be under increased monitoring regarding actions against money laundering, terrorist financing, and proliferation financing.According to FATF, South Africa was found to be partially compliant or non-compliant with 20 of FATF’s 40 recommendations.
South Africa was given a year to report on the demonstrated progress that it has made to achieve the recommendations set out in the 2021 Report.Greylisting will make doing business with South Africa more difficult as new compliance steps need to be met. And the fear is that it could hurt the investment.The South African Reserve Bank says it has taken note of the FATF’s decision and has reaffirmed its strong commitment to disrupt money laundering and financing of terrorism among others.
SARB says it has a zero-tolerance approach to addressing the abuse of the financial system by money launderers or terrorist financiers.