Financial Action Task Force greylisting under the spotlight

fatf
04 Jul 2024

National Treasury notes that, while South Africa is on track to address all outstanding Financial Action Task Force (FATF) Action Items, it remains a tough challenge to address all 14 of the remaining Action Items by February 2025.

In a statement on FATF greylisting and South Africa’s progress in addressing its action plan, treasury points out that all relevant agencies and authorities will need to continue to demonstrate significant improvements that are sustained and effective.

FATF greylisted South Africa at its February 2023 Plenary meetings.

A jointly agreed Action Plan containing 22 Action Items linked to the eight strategic deficiencies identified in the country’s Anti-Money Laundering and the Combating of the Financing of Terrorism regime was adopted.

South Africa is required to address all 22 Action Items to exit the FATF greylist. The Action Items have differing deadlines, falling between January 2024 and January 2025.

The FATF published the latest update on South Africa’s progress in addressing the Action Items in its Action Plan on 28 June 2024, following the June 2024 FATF Plenary meetings in Singapore.

Treasury does not expect South Africa to exit greylisting before June 2025, as per the Action Plan deadlines.

According to treasury, the FATF Plenary did not discuss the delisting of South Africa from greylisting at this juncture but focused instead on the progress made by South Africa in addressing the 17 outstanding Action Items.

“The FATF Plenary accepted the report of the FATF Africa/ Middle East Joint Group that South Africa has largely addressed 3 further Action Items, and hence has 14 outstanding items left to address (from the original 22).”

“The items that are addressed or largely addressed relate to the legal provisions criminalising terrorist financing and underpinning South Africa’s targeted financial sanction regimes, increasing the use of financial intelligence from the Financial Intelligence Centre to support money laundering investigations, the introduction of risk-based tools to identify higher-risk Designated Non-Financial Businesses and Professions, the updating of the Terror Financing National Risk Assessment, and increasing the resources and capacity of relevant authorities.”

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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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