SA anxiously awaits decision on whether it’s to be greylisted

South Africa will find out later today whether it’s to be greylisted by international finance watchdog, the Financial Action Task Force.

The body had previously found that South Africa scored poorly when it came to having rigorous laws relating to anti-money laundering and the countering of financing terrorism.

In the meantime, the government says it has made progress to avert the possibility of greylisting by introducing the General Laws Amendment Bill late last year, which seeks to plug the gaps.

But there’s high possibility that South Africa will be greylisted.

Botswana was greylisted in October 2018 as the Financial Action Task Force felt that it was poorly handling its anti-money laundering rules.

CEO of Botswana Stock Exchange, Thapelo Tsheole, shares their country experience of what South Africa could expect if it should experience the same fate.

“It becomes difficult for you to attract new investors into your market, both domestic and international investors, and there’s some level of investors pulling out of the market, some start selling off their shares and divesting from the market.”

Director-General of National Treasury Ismail Momoniat says the country should be prepared for the possibility of being greylisted.

“I think if we look at what will happen … if we were to be Greylisted, for example, it’s to what extent have we made progress. I think we’ve made phenomenal progress in the last year and a half. I think when a county is seen to be taking actual steps, it’s just a matter of time to complete those steps. I think we can reduce the impact if there were to be an adverse outcome.”

Founder and Chief Economist at Efficient Group, Dawie Roodt, unpacks the possiblity of the country being greylisted: 

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