Jurisdictions on the ‘grey list’ are in fact countries under increased monitoring and who have committed to actively work with the Financial Action Task Force (FATF) to address and resolve deficiencies within agreed timelines. South Africa is not on the black list i.e. a high risk jurisdiction.
In October last year, it was announced that South Africa was under review by the FATF, the global money laundering and terrorist financing watchdog.
A country is placed on this list if the FATF identifies strategic deficiencies in its systems to counter financial crimes. South Africa is not yet fully compliant in terms of anti-money laundering and terrorist financing requirements, but at the same time TAFT acknowledges that the country has made progress in addressing the gaps. The FATF laid out 67 recommended actions or deficiencies which required addressing and now only 8 of these remain for further and sustained progress which needs to be complied with before end January 2025
Finance Minister Enoch Godongwana stated that South Africa will work “swiftly and effectively” to address the areas where improvement is required.
Investors urged to remain invested
Volatility is nothing new to investors and although we may see an increase in market volatility in the short term, investors can be reassured that there is no reason for concern. Investments remain safe and subject to normal due diligence processes.
As always, we continue to advocate that investors stick to a well-planned, long-term investment strategy and not react hastily to market news.
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