Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home ยป Financial crime watchdog adds South Africa to ‘grey list’

    Financial crime watchdog adds South Africa to ‘grey list’

    February 26, 2023
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Financial Action Task Force

    Paris/Johannesburg — International financial crime watchdog the Financial Action Task Force (FATF) on Friday added South Africa to its “grey list” of countries under special scrutiny to implement standards to prevent money laundering and terrorism financing.

    Being added to the list is a reputational setback for Africa’s most advanced economy, which has been trying to address shortcomings identified by the FATF.

    The rand extended losses against the dollar after the watchdog’s decision, to trade down about 1.3% on the day.

    Analysts say increased FATF monitoring could mean South African clients at international financial institutions will be subject to enhanced due diligence checks.

    South Africa’s central bank and National Treasury said in separate statements that they noted the watchdog’s decision and would work to address its concerns.

    The Treasury said it expected a limited impact from the grey-listing on financial stability and the costs of doing business with South Africa.

    “The costs of increased monitoring will be substantially lower than the long-term costs of allowing South Africa’s economy to be contaminated by the flows of proceeds of crime and corruption,” it said.

    The Paris-based FATF also added Nigeria, Africa’s biggest economy, to its grey-list on Friday.

    It said both South Africa and Nigeria had made high-level political commitments to address the deficiencies it had found.

    Having South Africa added to the grey-list could also complicate its attempts to obtain funding and support from multilateral development institutions and official lenders, analysts said.

    “We see limited market and growth impacts short run but this will grow over time if foreign banks think SA (South Africa) will be stuck on the list,” said Peter Attard Montalto, a managing director at research firm Intellidex.

    Being put on the grey list could disrupt a country’s capital flows, the International Monetary Fund found in a 2021 paper, with banks possibly exiting relationships with customers based in high-risk countries to reduce compliance costs.

    The move was widely anticipated, said Razia Khan, Standard Chartered managing director and chief economist, Africa and Middle East.

    “What matters a whole lot more is the remedial action pledged by the authorities, including the SARB and Treasury, which raises hope of an eventual exit from the grey list,” she said.

    *Tassilo Hummel, Bhargav Acharya & Alexander, Winning Nellie Peyton & Rachel Savage, Editing: Ingrid Melander, James Macharia Chege, Tomasz Janowski, Louise Heavens, William Maclean – Reuters

    Follow us on twitter

    Related News

    FG, States, LGCs share N1.659 revenue in May 2025

    FAAC disburses N1.659trn for May as VAT, CIT revenues surge

    OPEC Fund commits $1bn in new financing for developing nations

    E-book
    Resilience Exhibition

    Latest News

    FG, States, LGCs share N1.659 revenue in May 2025

    June 22, 2025

    Military efforts slash crude oil theft, as Minister hails Armed Forces

    June 22, 2025

    Nigerian Navy cracks down on oil theft, arrests 76 vessels in two years

    June 22, 2025

    Rivers, Bayelsa left out as FG delivers life jackets to Kwara over boat mishaps

    June 22, 2025

    Nigeria commits $200m to health, eyes BRICS partnerships

    June 22, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.