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

JOHANNESBURG - A year after it was initially greylisted, South Africa (SA) remains on the Financial Action Task Team’s list of countries under close scrutiny.

The global financial crime watchdog downgraded South Africa to its grey list in February 2023 amid lax controls to prevent corruption, money laundering and terrorist financing.

While government says it has made headway in addressing its shortfalls, it remains to be seen how effective the turnaround plan has been.

The decision to grey list SA continues to raise concerns about its economic consequences for the country.

Prolonged greylisting runs the risk of spooking domestic and international investors, at a time when increased investment is key to economic recovery.

Part of what needs to be addressed is ramping up capacity in the country’s law enforcement outfits, including the Hawks, Special Investigating Unit (SIU), the National Prosecuting Authority (NPA) and crime intelligence.

Webber Wentzel’s Lerato Lamola said some progress has been made.

“National Treasury, in its mid-term budget policy statement indicated that it’s setting aside R14 billion to capacitate various agencies which are crucial to fight crimes, including financial crimes. So, a lot of work has been done.”

Despite all of the progress, SA still expects to be on the list for another year.

In his November 2023 mini-budget policy statement, Finance Minister Enoch Godongwana announced his target to be delisted by 2025.