Impending grey-listing of South Africa’s economy is serious: Godongwana

Minister of Finance Enoch Godongwana says government needs to take the impending grey-listing of South Africa’s economy seriously.

He was answering oral questions at the economic cluster plenary debate in Parliament on issues related to the economy.

Government is busy amending some Bills to convince the global market that it is capable of fighting money laundering and other forms of corruption.

Godongwana said the grey-listing issue can never be undermined.

“We need to be able to deal with this issue. It is a matter we need to attend to. So it is a matter that we are attending [with] urgency about talking about these institutions including an up to date forensic institution. We are working in dealing with this issue even at the institutional level. And I am quite confident that the team is going to introduce good results.”

FATF

The Banking Association South Africa said earlier this month that  the country’s economic conditions have improved post the global outbreak of the COVID-19 pandemic.

However, the country risks grey-listing by the Financial Action Task Force (FATF).

FATF is an inter-governmental finance body that monitors signatory countries’ compliance with anti-money laundering and countering terrorist financing international best practice regulations.

The Banking Association said the grey-listing matter is not just the bank sector’s concern, but the country’s burden to bear. This is because should South Africa be grey-listed, it will impact on it doing business and getting foreign investment into the country.

Out of the 11 immediate outcomes of the FATF, banking accounts for just one of them.

The association said it is already working with the arms of government in addressing the shortcomings identified by the task force.

Managing Director of Banking Association South Africa, Bongi Kunene says, “We are already working with National Treasury, the Financial Intelligence Centre and other arms of government addressing the shortcomings that were identified when it comes to banking. We are quite confident that we have taken the measures necessary to improve that immediate outcome.”