COMMUNITY LIVING
Greylisting , in black and white
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Since the news came on Friday 24 February 2023 that South Africa had been added to the Financial Action Task Force ’ s ( FATF ) global ‘ grey list ’, a lot has been said about this development that was widely expected . Kelin Pottier of 10X answers some frequently asked questions .
What is the FATF ?
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The FATF is a global inter-governmental body that promotes policies and sets international standards relating to the combating of money laundering , terrorist financing and the financing of the proliferation of weapons of mass destruction . The FATF maintains two lists of countries that present cause for concern : a grey list and a black list .
What is Greylisting ?
Greylisting happens when a country is formally under increased monitoring from the FATF in connection with deficiencies in its anti-money laundering , terrorism and proliferation financing framework .
Greylisted countries have committed to addressing inadequacies within a given timeframe . Blacklisted countries , on the other hand , are high-risk countries that do not actively engage with the FATF , currently North Korea and Iran .
Why was South Africa greylisted ?
The FATF evaluates countries against 40 recommendations and 11 effective immediate outcomes . South Africa performed poorly in its 2021 FATF evaluation . Since then , action taken to address deficiencies has included the passing of the Protection of Constitutional Democracy Against Terrorist and Related Activities Amendment Act and the General Laws Amendment Act of 2022 ( which made changes to a raft of laws including the Financial Intelligence Centre Act and the Financial Sector Regulations Act ). There has also been greater scrutiny by the Financial Sector Conduct Authority ( FSCA ) of beneficial ownership of financial