South Africa Being Graylisted by Paris-Based Watchdog 'Less Dire Than Some Suggest', President Says

According to South Africa's president, the country has been working towards tackling money laundering and other financial crime issues for many years. Nevertheless, the country has recently been "graylisted" by the Financial Action Task Force (FATF).

South African President Cyril Ramaphosa stated that putting the country on the gray list is "concerning" but not as "dire" as some would suggest.

"The listing of South Africa as a 'jurisdiction under increased monitoring' — commonly known as greylisting — has caused much concern about the state of our financial institutions, law enforcement agencies and investment environment. The situation is concerning but less dire than some people suggest," said Ramaphosa.

The global watchdog graylisted South Africa on 24 February. According to the organization, the country lags behind international standards for fighting money laundering and other financial crimes.

President Cyril Ramaphosa noted that South Africa, like other countries, was facing problems caused by globalized crime, and in this regard welcomed the strengthening of FATF control.

"The challenge facing authorities is to anticipate criminal innovation and to respond swiftly and effectively. We have a focused action plan in place to address the remaining deficiencies identified by the FATF. Most of these relate to the implementation of our laws," the president stated.

Ramaphosa also pointed out that South Africa has been working together with the watchdog for 20 years, thus emphasizing the country's dedication to fighting felonious activities both domestically and globally.

Trying to find something positive to highlight, South Africa's president outlined that this situation is an opportunity for the country to step up its fight against financial crimes. Ramaphosa also stated that South Africa knows how to overcome the problem and intends to get off the gray list as soon as possible.

"The fundamentals are in place, and we know what we need to do to get off the grey list. We are determined to do this as quickly as possible. This is important not only for our international standing but also for our own ability to fight these crimes in our country," the president stressed.

The FATF is a Paris-based intergovernmental organization that establishes standards in order to combat various financial crimes. South Africa has been cooperatiing with the FATF for 20 years, since it became a member in 2003.