Will SA finally be off the grey list after Financial Action Task Force visit?
The Financial Action Task Force concluded its on-site assessment of South Africa during the last week of July, the last step before the October 2025 Plenary can consider whether to remove South Africa from its grey list.
Countries must comply with the Financial Action Task Force (FATF) standards and measures to combat illicit financial flows, terrorist funding and potential threats to the integrity of the global financial system.
The FATF is an intergovernmental body established to protect financial systems and the broader economy from threats of money laundering and the financing of terrorism.
Greylisting subjects the financial services sector to increased scrutiny and stricter regulations to ensure that it addresses the deficiencies in its anti-money laundering and counterterrorism financing systems. It serves as an early indication that the country's financial system is at risk of misuse for illegal purposes, Bianca Botes, director at Citadel Global, said at the time.
'The logical consequence is detrimental to South Africa's international reputation as it is seen as a high-risk jurisdiction for financial transactions, making countries hesitant to engage in financial and law enforcement cooperation.'
ALSO READ: South Africa was greylisted due to endemic corruption
SA had to upgrade laws for Financial Action Task Force
South Africa had to upgrade its anti-money laundering and counterterrorism laws and regulations, implement improved supervision of financial institutions and enhance the country's ability to investigate and prosecute money laundering and terrorism cases.
In addition, South Africa had to complete this by January this year, but problems with compliance on the side of some estate agents and lawyers slowed the process down. However, the FATF announced in June that the country had substantially completed all 22 action items in the action plan adopted.
The FATF decision noted that South Africa's progress warrants an on-site assessment to verify that critical reforms, including anti-money laundering and the combating of the financing of terrorism reforms, have been implemented and that the necessary political commitment remains in place to sustain progress.
The FATF Joint Group held meetings with South African government officials and representatives of financial institutions and designated non-bank financial institutions. At the conclusion of the meetings, the FATF Africa Joint Group held a meeting with Deputy Minister of Finance David Masondo and Deputy Minister of Justice and Constitutional Development Andries Nel.
They assured the FATF of government's commitment to continue to improve the country's anti-money laundering and the combating of the financing of terrorism (AML/CFT) system.
ALSO READ: South Africa making more progress to get off FATF grey list
All eyes now on FATF meeting
After the onsite visit, the FATF Africa Joint Group will submit a report to the October 2025 FATF Plenary, which will consider any recommendations from the report on whether South Africa can be delisted from the FATF grey list.
According to a statement from National Treasury, Masondo and Nel assured the FATF Africa Joint Group that government will continue to actively partner with the FATF Global Network in preserving and advancing the integrity of the South African and global financial systems.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
35 minutes ago
- The South African
Did Elon Musk snub handshake to Ramaphosa?
A clip of Elon Musk seemingly snubbing a handshake from President Cyril Ramaphosa has gone viral. But is it all it seems for the Pretoria-born billionaire who has accused the South African government of promoting 'openly racist laws'? On the X app, a short clip of President Cyril Ramaphosa's visit to the White House resurfaced. In May, the president visited the Oval Office alongside a delegation, where he met with US President Donald Trump. In the video, Ramaphosa shakes the hands of US officials, whilst Elon Musk laughs and looks on. 'Elon Musk doesn't touch k******. This is embarrassing 💔', read a X post. However, a community note quickly corrected the fake news by posting the full clip of Elon shaking the president's hand. Last year, the two men met to discuss the potential operation of Elon Musk's internet satellite service, Starlink, in the country. In images posted by the president, Musk was seen smiling while shaking his hand. South Africa is one of a few African countries that has not granted Elon Musk's internet satellite service, Starlink, a licence to operate. According to the world's richest man, this is a result of 'racist laws', which require his company to adhere to a 30% local ownership mandate. The Pretoria-born billionaire is referring to the transformative legislation, Black Economic Empowerment (BEE), which he has reportedly rejected. According to reports, Starlink, which falls under SpaceX, could effectively bypass the law with its plans to invest over R2 billion in the country. Business Day reports that the company would finance infrastructure to support the Southern African Development Community (SADC), which is made up of 16 countries. Could Starlink operate in South Africa without adehering to transformative legislation? Images via X: @starlink In May, Minister of Communications and Digital Technologies Solly Malatsi gazetted a policy direction for his department on Equity Equivalent Investment Programmes (EEIPs), which are considered 'alternatives' to transformative legislation. Without mentioning Starlink or Elon Musk, the minister claimed that the policy would 'attract investment,' specifically in operating licensing. The minister revealed that current legislation for foreign investments 'did not allow companies to contribute to transformation goals in ways other than traditional ownership'. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
IOL News
4 hours ago
- IOL News
Women's Day: Action Society calls for violence against women to be declared a national disaster
Action Society calls for urgent action on violence against women in South Africa Image: Supplied Action Society released a statement on Women's Day, asserting that the widespread violence against South African women should be considered an act of terror, rather than merely crime. Citing the latest SAPS Crime Statistics, the rights group warned that behind the speeches and tributes, millions of South African women are not celebrating - they are surviving. The press release noted that, in the SAPS Crime Statistics covering 1 October to 31 December 2024, violence against women remains alarmingly high. 961 women murdered - about 11 per day, 320 per month, 11,803 women raped - about 131 per day, 3,934 per month, 16,023 women assaulted with grievous bodily harm, about 174 per day and 5,341 per month. Action Society strongly felt that these figures only reflect reported cases. 'Thousands more remain hidden in silence, fear, or distrust of a system that too often fails them,' read the statement. By comparison, the group said that terrorism kills around 1,667 people per month globally. 'South African women alone face over 9,500 violent attacks every month, yet there is no war room, no emergency deployment, and no national mobilisation,' it contended. The release also highlighted gaps in the country's legal framework and support structures. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ It stated that while South Africa does have sexual offences courts, there are just over 100 for the entire country - far below what is needed, adding that many are under-resourced, inconsistently staffed, or not fully operational, with rural and high-crime areas often lacking access entirely. Action Society is calling for a package of urgent actions, including that Violence against women be declared a national disaster In addition, it is calling for urgent investment in public-private partnerships to strengthen investigative and forensic capacity, the expansion of courts in every district focusing on permanent legislation of sexual offences, better-trained prosecutors and magistrates to prioritise GBV cases, and enforcement of mandatory minimum sentences and closure of legal loopholes. 'This Women's Day, we cannot simply honour women with words,' said Juanita du Preez, spokesperson for Action Society. 'We must defend their right to safety and dignity with decisive action. Silence protects the predator, not the victim.' Du Preez reiterated the group's stance, stating that the statistics demand more than rhetoric and commemorations. 'They require concrete, systemic reforms to protect women and deter those threatening them," she said. IOL Politics
IOL News
6 hours ago
- IOL News
South African banks face scrutiny over political account closures
SA's big banks' trade policies in the spotlight Image: IOL Regulators have been warned against approaching complaints about South African banks in the same way as US president Donald Trump, who this week issued an executive order after accusing financial institutions of unacceptably restricting law-abiding individuals and businesses' access to banking services based on political or religious beliefs. Mametlwe Sebei, president of the General Industries Workers Union of SA (Giwusa), an affiliate of the SA Federation of Trade Unions (Saftu), said Giwusa would not support merely implementing moves similar to Trump's as the situation required the same interventions but for different reasons. Sebei said moves against the banks for being reactionary and assaulting human rights must be supported. "We also know that banks are not accountable in this country, there are political parties, trade unions, community organisations whose bank accounts were closed without an adequate explanation," he said. Sebei described banks as untransformed and that there is not much to look into as far as the banking industry and its conduct are concerned as many South Africans have suffered a lot. He said even Giwusa recently had a dispute with one of the country's major banks, which gave some members access to the union's accounts without authorisation and there were no adequate explanations. According to Sebei, companies perceived to be close to certain public figures have had their bank accounts closed without explanation. "When they close bank accounts, they are effectively condemning workers in those companies to unemployment, retrenchments and job losses. You cannot destroy a company to punish the owners," he said. Sebei said the idea that private banking institutions can take political decisions is extremely dangerous and that is why this should be strongly regulated. In addition, he said the law already provides for instances where there is suspicion of misuse of banking facilities by a client that is able to be reported to the authorities as provided for in the Financial Intelligence Commission Act. Sebei added that the current laws can be implemented without jeopardising jobs and the livelihoods of workers. "Financial services are a lubricant by which the economy is working, it has enormous power in society and in the economy that can destroy not only individuals but also companies and whole industries. These people are wielding enormous public power that has been privatised into institutions that are guided by profiteering and nothing else and want to exercise this power without transparency, accountability and even pass political judgment and that for me is deeply troubling," he said.
