Being on the grey list means that a country has strategic deficiencies in its framework for anti-money laundering and combating the financing of terrorism (AML/CFT). The FATF found in 2021 that South Africa failed in 20 of the 40 FATF standards and had shortcomings in all 11 steps needed to combat money laundering. The FATF set a deadline of February 2023 to fix the problems or face possible grey listing.
Government steps to try to head off the risk include changes to money laundering legislation and the creation of an anti-money laundering desk within the National Prosecuting Authority. Critics have questioned why it took so long to prepare the legislative changes. A research report this month from the Intellidex consultancy estimates that South Africa now has an 85% chance of being grey-listed.
“We would expect grey listing to be negative for the rand, South African bonds and South
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