While the decision by the Financial Action Task Force (FATF) to greylist SA was expected when it was announced on Friday — markets had largely priced in the news — it still is yet another self-inflicted blow to our country’s reputation as an investment destination. It will take a huge effort to remove SA from this list, and while the main reason for the greylisting is a lack of ability on the part of the government to investigate and prosecute cases of corruption and money laundering successfully, business must play its part and assist where it can.

According to a Business Leadership SA (BLSA) report released last year, the economic impact of greylisting is primarily from the increase in cross-border payment transaction costs as financial firms, including banks, apply enhanced due diligence to any SA client. This will mean a more invasive and extensive process of assessing the source of funds and the probity of clients, although many of these firms are already doing it. ..


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