Reserve Bank Governor confirms greylisting is massive risk for SA economy
17 August 2022
South Africa is now at great risk of being subject to increased monitoring (greylisted) by the Financial Action Task Force (FATF) due to weaknesses in the country’s ability to enforce anti-money laundering and terrorism-funding regulations, and to investigate and successfully prosecute financial crimes.
The DA demands that Treasury acts with haste to implement the recommendations by the FATF to avoid the country sliding into an economic catastrophe.
The Governor of the Reserve Bank, Lesetja Kganyago, confirmed in response to question during a meeting of the standing finance committee that if South Africa were to be “greylisted” it will have dire consequences for the economy, as the move will hamper South Africa’s ability to attract investment and international financial transactions in the country.
The impact on the economy and the financial system is expected to become progressively worse. Together with a deteriorating balance-of-payments situation, being greylisted will compound to economic stagnation.