eBusiness Weekly
Bloobergy
South African authorities will meet peers from a global financial watchdog next week as they seek to avert being placed on its so-called grey list denoting nations with shortcomings in tackling illicit financial flows.
A delegation led by the National Treasury’s Acting-Director General Ismail Momoniat, will meet with the Financial Action Task Force’s Joint Group in Rabat, Morocco, on 13 January, the National Treasury said on Friday in a statement. Officials will update the Paris-based body on progress made by the South African authorities.
This comes after President Cyril Ramaphosa late last month signed into law two key pieces of legislation to aid efforts against money laundering and terrorism financing, a move seen as important in addressing deficiencies flagged by the watchdog.
“Following the conclusion of our Mutual Evaluation Report by the FATF in October 2021, we are required, in terms of our follow up process, to report back to the FATF on the progress that we have made in addressing the deficiencies that were identified,” Treasury said on Friday.
SA authorities submitted their initial progress report to the FATF joint group at the end of November, and received a response containing a preliminary analysis and comments on 16 December. A response to these comments was sent by SA authorities on 3 January, and the next step is a face-to-face meeting in Rabat, Morocco.
SA will be represented during the visit by delegates from National Treasury, the Department of Justice and Constitutional Development, the State Security Agency, the Special Investigating Unit, the Financial Intelligence Centre, the South African Police Service, the South African Reserve Bank, the Financial Sector Conduct Authority, the South African Revenue Service, the Department of Social Development, the National Intelligence Coordinating Committee, the Companies and Intellectual Property Commission and the National Prosecuting Authority.
The country was previously found wanting in all 11 of the FATF’s effectiveness measures to combat money laundering and the financing of terrorism. The evaluation was carried out in 2019 following an era of endemic graft during former President Jacob Zuma’s nine-year rule.
Zuma, who quit in 2018 under pressure from the ruling party, has repeatedly denied wrongdoing.
The central bank has previously warned that greylisting may have wide-reaching consequences for South Africa’s financial system. Besides causing reputational damage, it could lead to capital and currency outflows, while transactional, administrative and funding costs for banks could increase, it said.
