SA on course to exit grey list in 2025 - report

Stephen Grootes interviews Isaah Mhlanga, chief economist at RMB.

National Treasury's acting DG has been quoted as saying we're on track to get off the grey list of the Financial Action Task Force (FATF) in 2025.

South Africa was penalised by the global anti-corruption watchdog in 2023 for not having adequate measures in place to prevent money laundering and terror financing.

RELATED: 'A lot of work has been done' a year since SA's greylisting - financial services law expert

According to Bloomberg News, Ismail Momoniat said South Africa 'should address outstanding shortcomings' in tackling illicit financial flows in order to be removed from the list in either June or October next year.

The country has until February 2025 to address all outstanding action items.

In July this year, the Financial Intelligence Centre (FIC) warned it was ready to sanction those businesses impeding South Africa's efforts by not submitting required reports.

RELATED: Lawyers and estate agents holding SA back from exiting grey list, among others

In view of these apparently ongoing delays, Stephen Grootes asks Isaah Mhlanga (chief economist at RMB) if Momoniat's prediction is realistic.

Mhlanga says that in fact a lot has been done so far to achieve compliance.

"There have been significant efforts done by National Treasury, with the South African Reserve Bank, the Financial Sector Conduct Authority and related entities, alongside the financial services industry, particularly the local banks to try and remedy many of the issues that landed us in greylisting."

It looks practical; it looks realistic... We just need to see further progress being made, because the impact greylisting is having on the financial industry and the country (is huge)."

Isaah Mhlanga, Chief Economist - Rand Merchant Bank

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