South Africa Earmarked R265 Million to Get Off FATF’s Graylist

Finance Minister Enoch Godongwana announced on Tuesday that allocating R265 Million is one of several steps South Africa would take to get off the radar of the Financial Action Task Force (FATF). 

To ensure compliance with the anti-money laundering and terrorism funding regulations, the watchdog has added South Africa to its list of countries that require monitoring. As part of his efforts to get off the radar of the Financial Action Task Force (FATF), Minister of Finance Enoch Godongwana allocated R265 to the department. 

“As part of the response measures to the recent placing of the country on the gray list, the Financial Intelligence Center has been allocated additional funding of more than R265 million over the medium term to implement the Financial Action Task Force’s recommendations and get the country off the gray list,” says Godongwana.

The government will implement the recommendations of the FATF, he added. A periodic update on the progress of this project will be provided to the cabinet by his department. “The National Treasury, as the lead in the Interdepartmental Committee on Anti-Money Laundering and the Combating of the Financing of Terrorism, continues to coordinate government-wide efforts to comprehensively address the remaining weaknesses in our legal system,” he said, referring to the omnibus of statutory amendments passed by the government last year to address shortfalls in the anti-money laundering laws.

For example, Godongwana mentioned the frozen assets of individuals and organisations identified by the United Nations as associated with ISIS, al-Qaeda, or the Taliban. “We have also strengthened the systems needed to identify the beneficial owners of businesses and trusts so that they cannot hide behind the veil of corporate secrecy when engaged in money laundering.” During the next six months, he expects the FATF to re-rate South Africa’s technical compliance with FATF standards positively.

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