“SA has an 85% chance of being greylisted, but companies have confidence in the Treasury”

A new study commissioned by Business Leadership SA reveals an 85% chance of being blacklisted at the Financial Action Task Force meeting in February 2023.

Bruce Whitfield interviews Busi Mavuso, CEO of Business Leadership South Africa.

– There is an 85% chance that South Africa will be placed on a global gray list, according to a new study commissioned by Business Leadership SA

– A decision will be taken at the Financial Action Task Force (FATF) meeting in February 2023


Picture: Pixabay.com

Odds of South Africa being on the gray list are 85%, according to a new report published by Business Leadership SA (BLSA).

A decision will be taken at the Financial Action Task Force (FATF) meeting in February 2023.

He gave South Africa that deadline to introduce amendments to financial regulations to avoid being on the gray list.

The intergovernmental organization is an initiative launched by the G7 countries to combat money laundering and the financing of terrorism.

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What is greylisting and what impact will it have on South Africa?

SA risks being on the FATF gray list. Here’s why it’s bad for the economy


According to the report (by Intellidex), the economic impact of greylisting could be limited or severe depending on how we respond to it./Greylisting Opportunity.

“Researchers estimate the impact at less than 1% of GDP if we act hastily, 3% of GDP if South Africa is seen as slow and unwilling to meet the standards set by the FATF.

Bruce Whitfield interviews Busi Mavuso, CEO of BLSA.

Interestingly, says Mavuso, South African banks are feeling quite positive.

The big banks say they’ve had conversations with their international counterparts…and they’re comfortable with the interventions we’re putting in place to ensure that even if we get greylisted, how quickly we can get out of this messy situation.

Busi Mavuso, CEO – Business Leadership South Africa

She says the confidence is also inspired by the interventions the National Treasury is putting in place to ensure the country is not downgraded and the progress made by the National Director of Public Prosecutions (NDPP).

The big cases that the FATF actually complained about…the reasons we’re here are in many ways a consequence of the era of state capture…

Busi Mavuso, CEO – Business Leadership South Africa

Shamila Batohi (NDPP) is basically saying “give me some time; I’ve locked down these 9 great seminal cases I’ve been working on and I’m confident of their outcome’

Busi Mavuso, CEO – Business Leadership South Africa

So all these moving parts in between, hopefully that might just convince the review board to maybe say “let’s not make a decision on you now, let’s play a wait-and-see game.”

Busi Mavuso, CEO – Business Leadership South Africa

Mavuso agrees that the government has known about this risk for a long time and could have intervened sooner.

However, it is precisely because of a regime using state institutions to siphon off funds that checks and balances have not been instituted, she says.

I don’t know why the National Treasury didn’t get involved sooner…but they are doing it now and it’s an ongoing process.

Busi Mavuso, CEO – Business Leadership South Africa

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This article first appeared on CapeTalk: “SA has an 85% chance of being greylisted, but companies have confidence in the Treasury”

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