Our intention is to get South Africa off the grey list, says Ramaphosa

The cabinet has established an interdepartmental committee to ensure South Africa continues to address issues raised by the Financial Action Task Force (FATF).  

This is what President Cyril Ramaphosa told the National Council of Provinces (NCOP) on Thursday.   

The president was addressing questions about the country’s recent greylisting by the FATF and what progress has been made in implementing urgent steps the government is taking, as announced in his newsletter last month.  

Ramaphosa was also asked what the government was doing to get the country off the list and address the FATF’s concerns.  

“The committee is supporting the relevant authorities to, among other things, demonstrate an increase in the investigation and prosecution of serious and complex money-laundering and terrorism financing, an increase in mutual legal assistance requests to other countries, an increase in the use of financial intelligence by law-enforcement agencies and the effective implementation of targeted financial sanctions,” said Ramaphosa.  

It’s estimated that South Africa needs at least six months to demonstrate whether recent amendments adopted by parliament in December 2022 are effective, he said.

Ramaphosa said in 2019 the country underwent a mutual evaluation of its anti-money laundering and combating of the financing of terrorism system. 

“The evaluation was undertaken with the Financial Action Task Force, which is a global body that aims to tackle global money laundering and terrorist financing. 

“Since the publication of the mutual evaluation report in October 2021, government has been working with its various authorities to address the deficiencies that were identified in the report.”

He said the institution acknowledged in its February 2023 plenary media statement the significant progress made by South Africa to address most of the 67 recommended actions identified in the mutual evaluation. Such progress, said Ramaphosa, included the passage of two key acts at the end of December 2022, namely:

• the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act; and
• the Protection of Constitutional Democracy Against Terrorism and Related Activities Amendment Act.  

“As a result, our agreed action plan has now been reduced to eight focus areas. These areas relate largely to the effectiveness of our authorities in implementing the various elements of our anti-money laundering and combating of the financing of terrorism system.”  

Ramaphosa said time was needed to demonstrate improvements on outstanding deficiencies.  

He said the government hoped South Africa would make sufficient progress by next year to be removed from the grey list. “It is our intention that we should be removed from that grey list and we are working very hard towards that end.” 

The process the government is undertaking is comprehensive and involves a number of state institutions. Along the way it was discovered there were gaps and that’s why, he said, the government moved with speed to have the two amendments effected.  

“Treasury is leading the process, the Presidency is also involved in making sure that we move with greater speed and various other institutions, including the fusion centre.” 

Ramaphosa was asked how he could be trusted after the Phala Phala matter and said it was being investigated by various law enforcement agencies.  

He pleaded for patience until the outcome was made public.  

“I will continue to say there are no dirty dollars and I have said that this has been a result of a transaction, as a farmer that I am, who has sold game. That process is being thoroughly looked at and I think having opened myself to those institutions, we should wait until all those institutions come to a conclusion.”

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