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IOL News
2 days ago
- Business
- IOL News
One step off the greylist, but who's watching the watchdogs?
The announcement from the FATF Plenary in Strasbourg, France, marked a significant milestone for South Africa's beleaguered financial sector. Image: Ron AI BY ALL accounts, South Africa has come a long way since February 2023, when it was placed on the Financial Action Task Force (FATF) greylist over concerns about weak enforcement mechanisms and a lack of political will to combat high-level corruption. Now, nearly two years down the line, the country is on the cusp of delisting after 'substantially completed' all 22 action items set out by the global watchdog. The announcement from the FATF Plenary in Strasbourg, France, marked a significant milestone for South Africa's beleaguered financial sector. The country now awaits an on-site verification visit — a final step before potential delisting at the next FATF Plenary in October 2025. 'This is not just about ticking boxes,' National Treasury said in a recently released statement. 'This is about rebuilding institutions hollowed out during years of state capture, and restoring credibility to our financial systems.' Yet while the technical progress has been lauded internationally, domestic critics warn that celebration may be premature — and that complacency could unravel everything. South Africa's greylisting in 2023 was more than a reputational blow; it was a financial reckoning. Banks faced higher correspondent banking costs, foreign investment slowed, and businesses were forced to navigate an increasingly complex and costly regulatory environment. 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. 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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. Next Stay Close ✕ The legacy of state capture — under which law enforcement agencies were deliberately weakened — made the path to compliance long and arduous. But according to the FATF's latest communiqué: 'South Africa has demonstrated a sustained increase in investigations and prosecutions of serious and complex money laundering and the full range of terror financing activities in line with its risk profile.' That turnaround, according to officials, was only possible due to the relentless work of key institutions such as the Directorate for Priority Crime Investigation (DPCI — alias Hawks), the State Security Agency (SSA), and the National Prosecuting Authority (NPA). 'Without their commitment, we would still be floundering,' read the Treasury statement. 'These are the same institutions that were targeted during the Zuma era. To see them rise again is nothing short of remarkable.' The FATF has confirmed that South Africa has met the technical requirements for delisting, but the final verdict rests with the FATF Africa Joint Group, which is set to conduct an on-site visit prior to the October 2025 Plenary. 'The Joint Group will verify that implementation of AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future,' stated the FATF on June 13. National Treasury confirmed that preparations for the visit were already underway. While Treasury paints a picture of institutional renewal, opposition parties remain deeply skeptical. The DA, now part of the Government of National Unity (GNU), has cautiously welcomed the FATF's upgrade of South Africa's progress but issued a warning against any complacency that could derail the country's full removal. 'While this is an important step, the DA cautions the NPA and our financial regulators against complacency,' DA Deputy Spokesperson on Finance Wendy Alexander said in a statement. 'Exiting the greylist remains subject to a site visit by the FATF ahead of the body's next plenary in October.' Alexander stressed that further delays would only deepen the damage. 'The longer South Africa stays on the greylist, the harder it will be for our banks to do business both domestically and internationally,' she warned, adding that a one-off effort would not be enough. 'Exiting and staying off the greylist requires not once-off window dressing, but sustained change and implementation.' South Africa shares the spotlight with several African nations making strides against financial crime. Mali and Tanzania have been officially delisted from the FATF greylist, while Nigeria, Mozambique, and Burkina Faso were also recognised for having substantially completed their respective action plans.
India Gazette
27-05-2025
- Business
- India Gazette
India, Kuwait effectively coordinate in FATF meetings, other multilateral platforms: Envoy Adarsh Swaika
By Rajinish Singh Kuwait City [Kuwait], May 27 (ANI): India and Kuwait 'very effectively coordinate' in all multilateral platforms, including the Financial Action Task Force (FATF), Indian Ambassador to Kuwait Adarsh Swaika said on Tuesday. In an interview with ANI, Swaika also talked about the visit of the all-party delegation to Kuwait to highlight India's policy of zero tolerance of terrorism in the wake of Pahalgam terror attack and said 'sharing our views with our friendly partners helps in appreciating each other's concerns and sensitivities'. Swaika referred to the coordination between India and Kuwait during the FATF Plenary in Singapore last year. 'India and Kuwait very effectively coordinate in all multilateral platforms, including the FATF meetings. Last time in Singapore, we had very effective interaction and we continue to work together with all international partners, including Kuwait,' Swaika told ANI here. India intends to up terror funding against Pakistan for putting it back in the Grey List of FATF. India will send a detailed dossier to the FATF, the global money laundering and terror financing watchdog, outlining evidence and concerns regarding the involvement of certain entities and individuals in terror financing and money laundering activities, government sources had said earlier. The all-party delegation to Kuwait is led by BJP leader by Baijayant Jay Panda and the delegation's message of increasing scrutiny on Pakistan is getting a lot of response. Swaika said the all-party delegation's visit will help in understanding India's concerns and sensitivities. 'Sharing our views with our friendly partners helps in appreciating each other's concerns and sensitivities. Prime Minister Narendra Modi had paid a historic visit to Kuwait in December 2024. That visit has elevated our relationship to a strategic partnership. We look forward to greater interaction between India and Kuwait. Many new things are happening, on the political side, economic, cultural side. This visit will also help in understanding our concerns and sensitivities,' he said. Swaika said the delegation had a meeting with the Deputy Prime Minister and Minister of State for Cabinet Affairs of Kuwait. 'The delegation very effectively communicated India's point of view on the recent events in the Indian subcontinent, particularly the terror attack and the Operation Sindoor and underlined the new normal approach of India if there is any further escalation in this regard,' the Ambassador said. The delegation also met civil society members in Kuwait including former ministers, royal family members, editors, leading industrialists, academicians and opinion makers. 'The leader of the delegation and other members of the delegation very effectively conveyed India's point of view, conveyed to our Kuwaiti friends the rationale of why we did what we did, and how we did,' Swaika said. 'The Kuwait Deputy Prime Minister appreciated sharing of information by the Indian delegation and reaching out to various countries in the world. One would be aware also that Kuwait was one of the first countries in the Gulf region to condemn the terror attack,' he added. Swaika also talked about the bilateral initiatives on trade, culture and investment. 'There are a lot of plans on the economic side. Our trade is increasing. For the first time last year, we touched USD 2 billion of exports. On the investment side we have a substantial investment from the Kuwait Investment Authority in India, and work is on to see how they can invest more in different sectors of India. On the culture side, there have been a lot of takeaways, we started the Hindi language programme in the Kuwait National Radio last year. There were translations of Mahabharata and Ramayana,' he told ANI. The all-party delegation which visited Kuwait included BJP MPs Nishikant Dubey, Phangnon Konyak, Satnam Singh Sandhu, AIMIM leader Asaduddin Owaisi, former Jammu and Kashmir Chief Minister Ghulam Nabi Azad and former Indian diplomat Harsh Shringla. (ANI)
India Gazette
23-05-2025
- Business
- India Gazette
India to push for bringing Pakistan on FATF grey list: Government sources
New Delhi [India], May 23 (ANI): India will leave no effort to bring Pakistan onto the grey list, according to government sources. The Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, has been informed about India's intentions. Government sources said that India will send a detailed dossier to the FATF, outlining evidence and concerns regarding the involvement of certain entities and individuals in terror financing and money laundering activities. The dossier will highlight India's findings and demand strict scrutiny and action by the FATF under international protocols. Sources said that India's intervention at the FATF will have a serious impact. Indian officials will participate in the upcoming meeting scheduled for June and raise this issue with the FATF. The FATF Plenary had removed Pakistan from the Grey List in October 2022, albeit with the reminder that Pakistan would continue to work with the Asia Pacific Group (APG) to further improve its Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) system. The last time the FATF had placed Pakistan on its Grey List was in June 2018, when it found several strategic deficiencies concerning the AML and CFT recommendations. Pakistan was told to implement an action plan, which included demonstrating effective action against United Nations-designated terror outfits, individuals, and their associates in terms of financial sanctions, asset seizures, investigation, prosecution, and convictions. However, owing to its failure to implement all the action points fully, Pakistan was again retained on the Grey List on October 21, 2021. The FATF Plenary noted that Pakistan had completed 26 of the 27 action items in its 2018 plan. The one remaining issue was about continuing to demonstrate that terror financing investigations and prosecutions targeted senior functionaries and commanders of UN-designated terror outfits. Pakistan was put on the Grey List for the first time in 2008, then removed in 2009, and again it was brought under increased monitoring from 2012 to 2015. Greylisting by the FATF is said to limit a country's access to international loans. (ANI)
India.com
23-05-2025
- Business
- India.com
India To Push For Bringing Pakistan On FATF Grey List: Report
India will leave no effort to bring Pakistan onto the grey list, according to government sources. The Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, has been informed about India's intentions. Government sources said that India will send a detailed dossier to the FATF, outlining evidence and concerns regarding the involvement of certain entities and individuals in terror financing and money laundering activities. The dossier will highlight India's findings and demand strict scrutiny and action by the FATF under international protocols. Sources said that India's intervention at the FATF will have a serious impact. Indian officials will participate in the upcoming meeting scheduled for June and raise this issue with the FATF. The FATF Plenary had removed Pakistan from the Grey List in October 2022, albeit with the reminder that Pakistan would continue to work with the Asia Pacific Group (APG) to further improve its Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) system. The last time the FATF had placed Pakistan on its Grey List was in June 2018, when it found several strategic deficiencies concerning the AML and CFT recommendations. Pakistan was told to implement an action plan, which included demonstrating effective action against United Nations-designated terror outfits, individuals, and their associates in terms of financial sanctions, asset seizures, investigation, prosecution, and convictions. However, owing to its failure to implement all the action points fully, Pakistan was again retained on the Grey List on October 21, 2021. The FATF Plenary noted that Pakistan had completed 26 of the 27 action items in its 2018 plan. The one remaining issue was about continuing to demonstrate that terror financing investigations and prosecutions targeted senior functionaries and commanders of UN-designated terror outfits. Pakistan was put on the Grey List for the first time in 2008, then removed in 2009, and again it was brought under increased monitoring from 2012 to 2015. Greylisting by the FATF is said to limit a country's access to international loans.
The Hindu
18-05-2025
- Business
- The Hindu
India to apprise FATF of the latest evidence on terror infrastructure in Pakistan
The Indian authorities are planning to apprise the Financial Action Task Force (FATF) of the latest evidence related to the terror bases in Pakistan that were destroyed by the defence forces during the precision attacks as part of Operation Sindoor, in the aftermath of the Pahalgam terror attack. 'Although the decision making in the FATF is based on technical compliance of its anti-money laundering (AML) and counter-terrorism financing (CTF) recommendations, which is evaluated through the measures taken by the country concerned and on-ground verification, the gruesome killings in Pahalgam have necessitated the sharing of information about the existing terror infrastructure in Pakistan with the international watchdog,' said a government official. In the coming days, the official said, India is expected to highlight, at all the international forums, the latest evidence about the patronage being given by the Pakistani State machinery to banned terrorist organisations. The FATF Plenary had removed Pakistan from the Grey List in October 2022, albeit with the reminder that Pakistan will continue to work with the Asia Pacific Group (APG) to further improve its AML/CFT system. The last time the FATF had placed Pakistan on its Grey List was in June 2018. It found several strategic deficiencies with respect to the AML and CFT recommendations. Pakistan was told to implement the action plan, which included demonstration of effective action against United Nations-designated terror outfits, individuals and their associates in terms of financial sanctions, asset seizures, investigation, prosecution, and convictions. However, owing to its failure to implement all the action points fully, Pakistan was again retained on the Grey List on October 21, 2021. The FATF Plenary noted that it had completed 26 of the 27 action items in its 2018 plan. The one remaining issue was about continuing to demonstrate that the terror financing investigations and prosecutions targeted senior functionaries and commanders of UN-designated terror outfits. Earlier, in response to the additional deficiencies flagged in Pakistan's 2019 APG Mutual Evaluation Report in June 2021, it had given further commitment to address them. Pakistan was put on the Grey List for the first time in 2008, then removed in 2009, and again it was brought under increased monitoring from 2012 to 2015. Greylisting by the FATF is said to limit a country's access to international loans.
