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Greylisting underscores South Africa reform imperative

Monday, February 20, 2023

Significance

Some deficiencies were detailed in a 2021 FATF report and in October 2021 the country was given 18 months to remedy them or face greylisting. Greylisted states face tougher due diligence measures on cross-border financial exchanges, which can have serious economic implications.

Impacts

  • Greylisting may fuel anti-Western feeling and add to tensions over how Pretoria should position itself towards Russia, China and the West.
  • A jihadist insurgency in Mozambique and a recent US warning of a possible attack in Johannesburg will raise awareness of terrorism risks.
  • Greylisting will aggravate an already difficult economic situation for South Africa.

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