Bulletin: South Africa's Risk From FATF's Grey Listing Depends On Institutional Reform Momentum

JOHANNESBURG (S&P Global Ratings) Sept. 7, 2022--S&P Global Ratings today said that South Africa?s potential inclusion in the Financial Action Task Force's (FATF's) grey list could raise financial transaction and compliance costs for the economy, but these risks are largely captured within our sovereign, financial institution, and corporate ratings. The most recent FATF and Eastern and Southern Africa Anti-Money Laundering Group review jointly identified significant gaps in the South African anti-money laundering and counter-terrorism financing (AML/CFT) framework. This included a failure to pursue cases tied to the misuse of public funds during the "State Capture" era under the previous administration and an effort to cover up illicit cross-border payments. The review concluded that the weakening capacity of law enforcement agencies,

...JOHANNESBURG (S&P Global Ratings) Sept. 7, 2022--S&P Global Ratings today said that South Africa's potential inclusion in the Financial Action Task Force's (FATF's) grey list could raise financial transaction and compliance costs for the economy, but these risks are largely captured within our sovereign, financial institution, and corporate ratings. The most recent FATF and Eastern and Southern Africa Anti-Money Laundering Group review jointly identified significant gaps in the South African anti-money laundering and counter-terrorism financing (AML/CFT) framework. This included a failure to pursue cases tied to the misuse of public funds during the "State Capture" era under the previous administration and an effort to cover up illicit cross-border payments. The review concluded that the weakening capacity of law enforcement agencies, including the South African Revenue Service and the National Prosecuting Authority, and governance gaps at state-owned enterprises (SOEs) identified recently...

Bulletin