South Africa, according to a statement following a Cabinet meeting this week, still has to address “deficiencies on effectiveness” in 22 areas before the country can be taken off the grey list of the Financial Action Task Force (FATF).
The restriction was imposed in February 2023 based on a 2019 FATF evaluation contained in a 2021 report. FATF is a global inter-governmental body promoting policies and setting international standards to combat money laundering, terrorist financing and financing the proliferation of weapons of mass destruction.
The 2021 report identified South Africa as a country with strategic deficiencies in combatting money laundering and stopping the flow of finance to terror groups.
Cabinet was informed, according to Minister in The Presidency, Khumbudzo Ntshavheni, the country’s financial authorities have made “significant progress” with 20 of 25 technical compliance deficiencies fully addressed.
For South Africa to “fully exit” grey listing, 14 items termed “deficiencies on effectiveness” have to be addressed by next February. Eight items are no longer applicable as remedial actions have been implemented.
The statement reads, in part: “Cabinet takes notes of complexities of the nature of issues to be addressed, but remains committed to ensuring that efforts are heightened to address the remaining actions and also takes note that South Africa’s efforts are yielding better outcomes compared to the well-developed countries like United States of America, which is still heading behind South Africa”.
Implementation of government’s national strategy on anti-money laundering and countering terror financing is seen as central to ending the grey listing.
