President Cyril Ramaphosa said on Monday that the decision by the Financial Action Task Force (FATF) to place South Africa on a list of countries under increased monitoring was an opportunity for the country to strengthen the fight against financial crimes.
FTAF grey listed South Africa last week for having sufficient mechanisms in place to monitor and combat money laundering and terrorist financing activities.
The decision has serious implications for the country, more specifically its financial services sector as well as its ability to attract investment.
In his weekly newsletter on Monday, Ramaphosa acknowledged that the placement of South Africa on the FATF’s grey list would raise a lot of concern about the state of the country’s financial institutions, law enforcement agencies and investment environment.
“As a country that both values and enforces the rule of law, the grey listing is an opportunity for us to tighten our controls and improve our response to organised crime,” Ramaphosa said.
He added: “This will ultimately place us on a stronger footing to effectively fight these damaging and dangerous crimes.”
He said the government was determined to address the issues raised by the FATF to get off the list as quickly as possible.
The FATF is a global body that aims to tackle global money laundering and terrorist financing.
South Africa has been a member of FATF for the last 20 years as part of its commitment to fight these criminal activities both at home and across the world.
The grey listing comes amid warnings by some organisations that South Africa has recently become a safe haven for financiers of terrorist activities across Africa.
NM/jn/APA