INTERNATIONAL SANCTIONS AND THE FATF GREY LIST: A SOUTH AFRICAN PERSPECTIVE

Being grey listed for a prolonged period of time has an impact on a country’s ability to access international financial markets and leads to increased scrutiny from financial institutions and regulators.[2] Notwithstanding the robust anti-money laundering and counter financing of terrorism laws in South Africa, it is in the implementation as well as the policing, prosecuting and asset forfeiture where grey listing may be inevitable. The global financial crime watchdog, formally known as The Financial Action Task Force (FATF)[3], has, identified strategic deficiencies in the ability of South Africa’s systems to counter money laundering and the financing of terrorism.[4] This decision was announced on 24February 2023, as a consequence of South Africa’s poor compliance with International Standards around the prevention of money laundering, terrorist financing and proliferation financing.[5]