Deputy Minister of Finance, Dr David Masondo, has reiterated to his US counterparts that government is working hard to get South Africa out of the grey list.
“[We] are working together with [the] Financial Action Task Force (FATF) and the US as our important partner to combat illicit and terror finance. [To also] manage risks associated with that, and generate the necessary investor confidence in our country,” Masondo said.
Grey listed in early 2023
South Africa was grey-listed by the FATF in February 2023 for not complying with international standards. These standards relate to money laundering and addressing illicit financial flows.
The FATF is the international standard-setting body that oversees global compliance with anti-money laundering rules.
The FATF grey list refers to the FATF’s practice of publicly identifying countries with strategic AML/CFT deficiencies. It maintains two such lists, with one being jurisdictions under “increased monitoring”. These are actively working with the FATF to address strategic deficiencies in their regimes”. Secondly “high-risk jurisdictions subject to a call for action”. These are not actively engaging with the FATF to address these deficiencies.
Cooperation between SA, US Treasuries
The deputy minister and the US Deputy Secretary of Treasury, Wally Adeyemo, as well as officials, recently held a bilateral meeting. This was part of measures to strengthen cooperation between the two Treasuries and associated entities.
“Investment is critical for economic growth, which is a necessary condition for addressing unemployment and poverty in our country. But if our country is infested with corruption, illicit and terror finance, we cannot attract investment. Hence, we are working hard to get out of the grey list,” said Masondo.
Adeyemo said the US shared a “deep and broad” relationship with South Africa. South Africa can continue to take vital steps, he said. Steps that will ensure that it attracts more capital from the US and other parts of the world.
Key agencies to combat financial crimes
The deputy minister said the capacity of key agencies has been improved upon. Agencies such as the South African Revenue Service (Sars) and the National Prosecuting Authority (NPA). They are improved in order for them to combat issues such as money laundering.
The US authorities also offered further technical assistance to assist South Africa to exit the grey listing. To also rebuild the capability of key institutions. These are institutions combatting money laundering, terror financing and wildlife trafficking.
Masondo said South Africa has made significant progress since being grey listed. This includes passing two acts in Parliament. These acts are aimed at addressing money laundering and terror financing.
Anti Money Laundering Bill
Finance Minister Enoch Godongwana tabled the Anti-Money Laundering and Combating Terrorism Financing Amendment Bill in August 2022. He tabled them in in Parliament. The tabling followed Cabinet’s approval of the bill at its meeting on August 17 2022.
In a statement at the time, the National Treasury said the approval was a demonstration of government’s commitment. This commitment to the fight against corruption, money laundering and terror financing.
READ | SA works on exiting FATF grey list
The country has also addressed 15 of the 20 legislative deficiencies identified by the Financial Action Task Force.
The US Deputy Secretary of the Treasury is visiting South Africa from March 10 – 15 2024.
- SAnews.gov.za
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