US wants SA to fast-track plans to address its financial system deficiencies

JOHANNESBURG - The United States (US) is calling on South Africa to fast-track plans to address deficiencies in the country’s financial system, as weak controls continue to worry investors.

It’s believed the country’s ability to attract investment diminished after landing on the notorious grey list.

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South Africa was greylisted a year ago amid calls to double down on corruption, money laundering and terrorism financing.

The Financial Action Task Force gave the country a 2025 target to develop national policies to address higher risks and amend some of the existing legal frameworks.

While South Africa has only addressed a fraction of the red flags, US Deputy Secretary of the Treasury Wally Adeyemo said it's a step in the right direction.

Adeyemo made the comments on Wednesday in Pretoria following a bilateral meeting with Deputy Minister of Finance David Masondo.

“The steps that you are taking to address the risks associated with illicit finance and countering financing terrorism are important steps that will lead attracting more capital from the United States, and from around the world. The United States wants to be your partner in doing this work.”