Financial Action Task Force: SA must deal with financial crimes by October

The rating by the global money laundering and corruption watchdog could spell trouble for the country's economy - with fears that the country could lose its credibility as an investment destination.

Picture: Supplied.

JOHANNESBURG - The National Treasury has again warned that South Africa runs a high risk of being grey listed by the international Financial Action Task Force.

The rating by the global money laundering and corruption watchdog could spell trouble for the country's economy - with fears that the country could lose its credibility as an investment destination.

Adding to an already frail economy, the listing would make it difficult for the country to do business abroad.

The Financial Action Task Force has given South Africa until October to fix shortfalls in how it combats money laundering and terrorism financing after it identified some weaknesses in the country's financial systems.

National Treasury deputy director-general Ishmail Momoniat has admitted that country is in danger.

Momoniat believes the recent state capture report only added to the country's woes.

"It's not just an issue that we're weak on anti-money laundering. We're generally weak on dealing with any financial crimes or corruption and so on."

But Momoniat is confident that the country's financial authorities will be able to address the defects before the October deadline.

"The legal issues we can fix up through changing legislation and we can do that by the end of the year. I'm fairly confident about that."

Pakistan and South Sudan are among countries that are financially grey listed.