South Africa on track to get off greylist in 2025

South Africa is on course to exit a global dirty money watchlist next year, but challenges remain in addressing system shortcomings, according to the National Treasury.

South Africa has until February to address items flagged by the Financial Action Task Force to get off the so-called grey list by June 2025.

It was listed early last year after getting poor marks for its efforts to combat money laundering and terrorism financing, denting the country’s reputation amid investor concern over an economic outlook already dimmed by sluggish growth, crime and corruption.

“Treasury does not expect South Africa to exit greylisting before June 2025, as per the Action Plan deadlines,” it said in a statement Tuesday. “It remains a tough challenge to address all 14 of the remaining Action Items by February 2025.”

The watchdog initially identified 22 areas that the country needs to tackle, of which eight have since been completed.

South Africa still has two reporting cycles, which are due in September 2024 and January 2025, to address outstanding issues. It aims to complete nine of them by September with the rest due in January. It needs to get all of them done to exit the grey list by June 2025.

“Agencies and authorities will need to continue to demonstrate significant improvements” Treasury cautioned.


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