Global watchdog FATF greylists SA

SOUTH Africa has been greylisted by global anti-money laundering watchdog Financial Action Task Force (FATF), it was confirmed in an update on its website on Friday.

This is for failing to adequately tackle illicit financial flows, through the relevant legislation and measures to prevent possible money laundering and terror-financing.

The country has been greylisted together with fellow African nation Nigeria, and will face being under further scrutiny by the FATF.

South Africa and Nigeria were featured under the “high-risk and other monitored jurisdictions” section.

“Jurisdictions under increased monitoring are actively working with the FATF to address the strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing,” the watchdog noted.

“When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolve swiftly the identified strategic deficiencies within agreed time frames,” it added.

The rand was 0.31 percent weaker at R18,41 by 13:41.

JSE-listed bank stocks were around 2 percent weaker on the news.

Priced in? The immediate impact of greylisting is likely to be muted because South Africa’s myriad problems mean international banks have already placed the country in a higher risk category and markets have already priced in the move, Peter Attard Montalto, head of capital markets research at Intellidex, told Bloomberg earlier this week, ahead of the FATF meeting. — Moneyweb