By Phenyo Selinda
National Treasury has acknowledged the significant challenge South Africa faces in addressing the remaining Action Items required to exit the Financial Action Task Force (FATF) grey list by February 2025. Despite substantial progress, the Treasury notes that completing all 14 outstanding Action Items by the deadline remains a formidable task.
Progress and Challenges in Addressing FATF Action Items
The Financial Action Task Force (FATF) published an update on South Africa’s progress on 28 June 2024, following the conclusion of the June 2024 FATF Plenary meetings in Singapore. According to National Treasury, all relevant agencies and authorities must continue to demonstrate significant and sustained improvements in addressing the outstanding Action Items.
Background on Grey Listing
South Africa was placed on the FATF grey list during the February 2023 Plenary meetings. The FATF identified eight strategic deficiencies in the country’s Anti-Money Laundering and Combating of the Financing of Terrorism (AML/CFT) regime and set out a jointly agreed Action Plan containing 22 Action Items. These items have deadlines ranging from January 2024 to January 2025.
Current Status
National Treasury expressed satisfaction with the outcomes of the recent FATF Plenary meetings. However, it does not expect South Africa to exit the grey list before June 2025, given the deadlines in the Action Plan. The Minister of Finance has been leading efforts within the government to ensure all Action Items are addressed by February 2025.
“The FATF Plenary did not discuss the delisting of South Africa from grey listing at this juncture but focused instead on the progress made by South Africa in addressing the 17 outstanding Action Items,” National Treasury said. The Plenary accepted a report from the FATF Africa/Middle East Joint Group, noting that South Africa has largely addressed three more Action Items, leaving 14 still to be tackled.
Path to Delisting
The January 2025 deadline serves as the earliest point at which South Africa can be expected to address all the Action Items. Once these items are addressed, the country must confirm its progress through an onsite visit by the FATF Joint Group. If the FATF Plenary determines in February 2025 that all Action Items have been addressed, an onsite visit will be scheduled for April/May 2025, with a recommendation for delisting expected at the June 2025 FATF Plenary.
“If any of the Action Items remain unaddressed by the January 2025 deadline, the country will be required to continue reporting to the FATF every four months until all deficiencies have been addressed,” National Treasury added.
Recent Progress
During the June 2024 meetings, the FATF Plenary adopted a report confirming that eight of the 22 Action Items are now addressed or largely addressed. These include legal provisions criminalising terrorist financing, enhancing the use of financial intelligence, and increasing the resources and capacity of relevant authorities.
Remaining Steps
South Africa has two remaining reporting cycles in September 2024 and January 2025. Many of the 14 outstanding items are due in these last two cycles, as the country must demonstrate sustained improvements over successive reporting periods. In the September 2024 cycle, South Africa is required to address nine outstanding Action Items, with the final five due in January 2025.
Download Here:
Read all our publications on magzter:
https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues
________________________
Central News also offers Sponsored Editorial Content, Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.
We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.
Advertisement:
To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za
For Business Related:
business@centralnews.co.za
Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za
General Info:
info@centralnews.co.za
Office Administrator:
admin@centralnews.co.za
Whatsapp / Call: 081 495 5487
Website: https://www.centralnews.co.za
Social Media Platforms (@centralnewsza) : Linkedin, Facebook, Tiktok, Twitter, Instagram, Youtube
#centralnewsza #freestate