Godongwana believes quick greylisting escape possible

South Africa can escape from greylisting by the middle of next year, said finance minister Enoch Godongwana.

This would make South Africa the second fastest country ever to be removed from the greylist, slower only than Iceland which was removed from the greylist after one year.

Speaking on the Money Show with Bruce Whitfield, Godongwana said that the government has already complied with regulatory reforms required by the Financial Action Task Force (FATF).

The 15 FATF requirements that the country must comply with to be removed from the greylist relate to the implementation of policy and not the policy itself, said Godongwana. 

“Much reference has been made to the financial sector. The financial sector, even by FATF standards, is solid – so it’s not found wanting.

“The outstanding matters relate to the investigation and lastly prosecution for these crimes,” he said. 

The FATF gave South Africa until January 2025 to comply with all of the requirements. Godongwana thinks that government can achieve this faster – and is aiming for the middle of 2024. 

A statement from Treasury said that countries normally take between one and three years to address the deficiencies identified by the FATF. 

Mauritius was on the FATF greylist for 21 months before they complied with all their requirements and were removed.

Godongwana said that he has been in discussion with the minister of finance from Mauritius for advice on how to get off of the greylist.

He added that significant funds have been allocated to enable compliance with the remaining conditions set out by the FATF.