iAfrica

Be Smart About South Africa

Nigeria and South Africa in the Grey

International financial crime watchdog the Financial Action Task Force (FATF) has added South Africa and Nigeria to its so-called “grey list” of countries under special scrutiny to implement standards to prevent money laundering and terrorism financing. The FATF is an inter-governmental organisation that underpins the fight against money laundering and terrorism financing by setting global standards and checking if countries respect them. Paris-based FATF said the two countries were added to its list following a review. Being added to the grey list is a reputational knock for the South African government, which has been trying to address shortcomings identified by the FATF.  Analysts say it could also mean South African clients at international financial institutions will be subject to enhanced due diligence checks. It could also complicate South African attempts to access funding and support from multilateral development institutions and official lenders.

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