Finance Minister Enoch Godongwana says efforts to get the country off the grey list are well underway, with the Financial Intelligence Centre (FIC) allocating more than R265 million over the medium-term.
Delivering his Budget Vote speech in Parliament on Tuesday, Godongwana said that this forms part of the response measures to the recent placing of the country on the Financial Action Task Force (FATF) grey list.
“As part of the response measures to the recent placing of the country on the grey list, the Financial Intelligence Centre has been allocated additional funding of more than R265 million over the medium-term to implement the Financial Action Task Force’s recommendations and get the country off the grey list,” Godongwana said.
Earlier this year, the Paris-based anti-money laundering watchdog added South Africa to its list of countries that will be monitored to ensure the implementation of anti-money laundering and terrorism funding regulations.
Godongwana said that government will implement the Financial Action Task Force’s recommendations, with his department providing periodic updates to Cabinet on progress.
Last year, the Minister said, government led a process to pass a series of statutory amendments that address the gaps in SA’s anti-money laundering regime.
Godongwana said one of the many examples is the frozen assets of individuals and entities designated by the United Nations to be linked to ISIS, the Taliban and al Qaeda.
He said that they have updated and strengthened systems for supervising non-financial businesses that are at risk of being used for money laundering or the financing of terrorism.
“We have also strengthened the systems needed to identify the beneficial owners of business and trusts, so that they cannot hide behind the veil of corporate secrecy when engaged in money laundering.”
Godongwana said these updates have been submitted to the FATF and a positive re-rating of the country’s technical compliance with FATF standards can be expected in the next six months.
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