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SA likely to be added to the worldwide "greylist" for supporting terrorism and money laundering

The inclusion of South Africa on a worldwide "greylist" for money laundering and terrorist financing might compromise the stability of the nation's financial system, and its ties with international institutions, and lead to a loss of foreign investment. South Africa has until the end of August to submit a report to the Financial Action Task Force (FATF) outlining its strategy for resolving issues raised by the international watchdog on money laundering and terrorism funding.

53,836 Terrorism Stock Photos, Pictures & Royalty-Free Images - iStock

The capacity of the government to show improvements in the laws and the work done by the investigative authorities and courts to stop corruption and money laundering are two areas that warrant worry. Another is the efficacy of the local banks in reporting suspicious activities. "It appears like South Africa is on a path to be greylisted," says Johan Els, an economist at Old Mutual. That implies there will be greater fees associated with participation in global transactions, charges for banks, and so on. However, I do not believe the impact will be as catastrophic as many people believe; it does not include South Africa being removed from international investment indices."

"When compared to other similar developing countries, South Africa continues to stand out in terms of the robustness of its economy and institutions." "The policy climate, the regulatory environment, everything will support South Africa," Els says.


Source: https://www.sabcnews.com/sabcnews/sa-likely-to-be-added-to-global-money-laundering-terrorist-funding-greylist/

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Johan Els Old Mutual SA South Africa

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