Cape Town — Parliament will debate the economic impact of South Africa’s grey listing by the Financial Action Task Force (FATF) and the steps required to exit the grey list.
The Speaker of the National Assembly has agreed to the debate following a request by the DA’s shadow finance minister Dion George. George said that other countries would now regard South African companies and individuals as high-risk in global transactions.
“This development is entirely unacceptable, and it is incumbent upon our government to take immediate action to rectify this untenable position,” George said.
He also called out President Cyril Ramaphosa for saying that “the situation is concerning but less dire than some people suggest”.
George added that SA’s grey-listed status was an indictment of its criminal justice system and “the government’s inability to combat financial crimes such as money laundering and terrorism financing”.
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The grey listing would have “significant implications for South Africa’s economy, ranging from less than 1% to 3% reduction in GDP, depending on how quickly we can exit the grey list. Additionally, our reputation will suffer from the negative publicity”.
“The immediate effect of the grey listing is that South African clients will be subject to enhanced due diligence which will increase the costs of doing business for South African companies and individuals trading internationally or holding bank accounts or investment accounts abroad,” he said.
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Compiled by Junaid Benjamin
