South Africa Risks FATF Gray-List Return Over Police Graft, Treasury Adviser Warns
Updated
Updated · Bloomberg · Jun 11
South Africa Risks FATF Gray-List Return Over Police Graft, Treasury Adviser Warns
3 articles · Updated · Bloomberg · Jun 11
Summary
South Africa faces a possible return to the Financial Action Task Force gray list after a panel found corruption at the highest levels of the police service, Business Day reported.
Ismail Momoniat, a National Treasury adviser working to prevent a relisting, said widespread graft and fraud in police and justice institutions could weaken the country’s anti-money-laundering and counter-terrorist-financing defenses.
That raises the risk that South Africa’s progress in addressing FATF concerns could come under renewed review if enforcement agencies are seen as compromised.
A return to the gray list would mark a setback for Pretoria’s effort to restore credibility with global watchdogs and financial counterparties.