Financial Action Task Force greylists South Africa

International financial crime watchdog adds SA and Nigeria to list of countries under special scrutiny

24 February 2023 - 13:34 By Tassilo Hummel
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The Financial Action Task Force on Friday said it was adding South Africa and Nigeria to its grey list of countries. Stock photo.
The Financial Action Task Force on Friday said it was adding South Africa and Nigeria to its grey list of countries. Stock photo.
Image: 123RF/WELCOMIA

International financial crime watchdog the Financial Action Task Force (FATF) said on Friday it was adding South Africa and Nigeria to its so-called "grey list" of countries under special scrutiny to implement standards to prevent money laundering and terrorism financing.

The FATF is an intergovernmental organisation that underpins the fight against money laundering and terrorism financing by setting global standards and checking if countries respect them.

Paris-based FATF said the two countries were added to its list following a review.

Being added to the grey list is a reputational setback for the South African government, which has been trying to address shortcomings identified by the FATF.

Analysts say it could also mean South African clients at international financial institutions will be subject to enhanced due diligence checks. It could also complicate South African attempts to access funding and support from multilateral development institutions and official lenders.

South Africa's National Treasury said on Friday that it expected increased monitoring by the FATF, to have a limited impact on financial stability and costs of doing business with South Africa. 

The watchdog said in a statement that both South Africa and Nigeria have made high-level political commitments to work with the FATF to address the concerns.

It places a country on its "grey list" under increased monitoring when the country has "committed to resolve swiftly the identified strategic deficiencies within agreed timeframe", it added.

Reuters


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