Deputy Finance Minister David Masondo has poured some cold water on reports that South Africa may get off the Financial Action Task Force (FATF) greylist by February next year.
He said that realistically South Africa can expect to be off the list by the end of October 2025.
Masondo is currently in the United Kingdom with a contingent of SA delegates that include Deputy President Paul Mashatile in order to woo investment into the country.
He told investors that South Africa has not addressed all the deficiencies identified by FATF.
Masondo told Business Day that South Africans need to get realistic about the timeline.
“We are just being realistic given what we know and what we still need to do,” Masondo said.
When South Africa was placed on the grey list last year, the FATF identified 22 issues that government needed to address.
There are 14 items that still need to be addressed, said the deputy finance minister. He said eight items had been addressed and struck off FATF’s list.
Last month, Minister in the Presidency, Maropene Ramokgopa, said that South Africa will have around five months to address the remaining 14 anti-money laundering deficiencies required by FATF.
Ramokgopa said that she had received a fourth progress report from the Interdepartmental Committee on Anti-Money Laundering and Combating the Financing of Terrorism.
She said there has been significant progress to address the technical compliance deficiencies.
Now, Masondo has emphasised that the 5-month timeline is not realistic and 14 items will not be addressed by February 2025.
“To be globally competitive the cost of doing business must come down, but greylisting leads to higher transactions because of the enhanced due diligence that’s required,” Masondo explained.
South Africans can expect an official update on the greylisting on October 30, 2024, when Finance Minister Enoch Godongwana tables his Medium-Term Budget Policy Statement.
IOL BUSINESS