BUSISIWE MAVUSO: Scoring the equaliser after the greylisting own goal will take some doing
Companies will do well to engage with foreign entities in order to manage the additional due diligence to follow
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. ..
...Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.