‘Deficiencies identified by FATF do not directly relate to the country’s financial sector’

The deficiencies that the Financial Action Task Force (FATF) identified before greylisting South Africa do not directly relate to the country’s financial sector. That’s according to President Cyril Ramaphosa.

The eight strategic deficiencies identified by the FATF mostly relate to implementation of the country’s laws with regards to investigation and prosecution of serious and complex money-laundering and terrorism financing.

In his letter to the nation, Ramaphosa says this means the financial stability and cost of doing business will not be seriously affected.

Ramaphosa says the greylisting presents an opportunity for the country to tighten its controls and improve its response to organised crime such as money laundering.

The FATF greylisted South Africa on Friday.

Ramaphosa says the country has come a long way in developing world-class expertise, legislative reform and strengthening state institutions following the state capture era.

He says the challenge is for authorities to anticipate criminal innovation and respond swiftly and effectively.

What greylisting of SA means: Dr Azar Jammine[embedded content]