South Africa is on track to exit the global dirty money grey list by June 2025, provided it meets the Financial Action Task Force’s requirements. The National Treasury acknowledges the challenge of addressing all 14 outstanding issues by February 2025, though eight of 22 initial concerns have been resolved. With two key reporting cycles ahead, South Africa must show significant progress to improve its reputation and economic outlook.
Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.
Join us for BizNews’ first investment-focused conference on Thursday, 12 September, in Hermanus, featuring top experts like Frans Cronje, Piet Viljoen, and more. Get insights on electricity and exploiting SA’s gas bounty from new and familiar faces. Register here.
By Ntando Thukwana and Adelaide Changole
South Africa is on course to exit a global dirty money watchlist next year but challenges remain in addressing system shortcomings, according to the National Treasury.
South Africa has until February to address items flagged by the Financial Action Task Force to get off the so-called grey list by June 2025.
It was listed early last year after getting poor marks for its efforts to combat money laundering and terrorism financing, denting the country’s reputation amid investor concern over an economic outlook already dimmed by sluggish growth, crime and corruption.
“Treasury does not expect South Africa to exit greylisting before June 2025, as per the Action Plan deadlines,” it said in a statement Tuesday. “It remains a tough challenge to address all 14 of the remaining Action Items by February 2025.”
The watchdog initially identified 22 areas that the country needs to tackle, of which eight have since been completed.
South Africa still has two reporting cycles due in September 2024 and January 2025 to address outstanding issues. It aims to complete nine of them by September with the rest due in January. It needs to get all of them done to exit the grey list by June 2025.
“Agencies and authorities will need to continue to demonstrate significant improvements” Treasury cautioned.
Read also:
- 🔒 Monaco set to join dirty money “grey list” next week
- Venezuela and Monaco face FATF scrutiny, join dirty money grey list
- Ramaphosa: South Africa determined to exit dirty money list
© 2024 Bloomberg L.P.