Why is SA greylisted and how does this affect you?
The watch-dogs have it out for SA...
The world is throwing shade at Mzansi after the Financial Action Task Force placed SA on the grey list.
‘We’ve heard of blacklists but what is a grey list’, you may be wondering?
Business Insider reports: “South Africa and Nigeria have been placed on a global financial watchdog’s so-called grey list denoting nations with shortcomings in tackling illicit financial flows, a move that scars their international reputations and may raise costs for banks and asset managers.”
The greylisting means South Africa will be subjected to tighter monitoring as per ECR Newswatch.
Read More: Anti-money laundering watchdog grey lists South Africa
What it means for the country is pretty straightforward, however, what it means for ordinary South Africans is a bit of a grey area.
Here are the effects as shared by News 24:
- This decision is expected to hike the cost of doing business in the country.
- South Africans may also find that sending funds offshore and transacting with international banks more onerous.
- Greylisting has also historically also led to a decline in foreign investment.
On the plus side, the FAFT have said that in recent months, South Africa has made significant progress on many of its recommended actions to improve its system, but more work is needed to increase investigations and prosecutions of money laundering.
According to Intellidex managing director Peter Attard Montalt: “For SA to be quickly removed from the list, there would need to be a "step up in effort from the whole of government led from the very top", particularly around the criminal justice sector.”
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