Financial Action Task Force Grey Lists South Africa

Today’s decision by the Financial Action Task Force (“FATF”) to place South Africa on its grey list of jurisdictions under increased monitoring is a devastating development that will further harm South Africa’s ailing economy further compounding the unemployment crisis.

While we are disappointed by the decision, it comes as no surprise. It has been abundantly clear since the publication of FATF’s mutual evaluation report in 2021 that greylisting has been the most likely outcome for South Africa.

Despite ample warning, our government failed, yet again, to act in the best interests of South Africans. The General Laws Amendment Bill on Anti-Money Laundering and Combatting Terrorism Financing was introduced too late, and the reforms recommended by the FATF report were not implemented with sufficient urgency.

Unfortunately, we are all too aware that any efforts to combat illicit financial flows would be met with severe resistance by the ANC and their deployments that have captured our state institutions, as this would be in direct conflict with the ANC’s corrupt activities.

Due to South Africa’s grey listing, South African businesses will face even more barriers to growth as the cost of doing business internationally is set to increase. If estimations made by analysts are correct, South Africa’s economic growth may slow down by an additional 1-3% per year – something we can ill afford in the midst of the various other ANC-led crises South Africa finds itself in.

We would like to acknowledge the hard work done by various government agencies and dedicated officials, such as the Financial Intelligence Centre. Unfortunately, not even the most effective of agencies can fulfil their duties effectively in an environment where the most inept and corrupt are in charge of setting our policy and legislative agenda.

ActionSA, a party committed to the rule of law, will prioritize the implementation of legislation and interventions that will ensure that we are removed from the grey list as soon as possible. South Africa must be a responsible participant in the global economy and do everything we can to combat illicit financial flows.