South Africa was recently declared as Greylisted by President Cyril Ramaphosa. Greylisting is when a country is under increased monitoring by the Financial Action Task Force (FATF). The FATF is a global institution based in Paris that tackles money laundering and terrorist and proliferation financing.
The FATF released an evaluation of South Africa’s anti-money laundering measures, and it was found that there are exceptions in some of the AML policies in place. These exceptions create grey areas where money laundering, theft, and terrorist funding could be more susceptible.
Changing a country’s status to Greylisted is an attempt to prevent funds from being used for terrorism. Unfortunately, South African companies and consumers globally receive the same branded sticker, which can damage our tourism market and decrease possible interest in international investments.
The Greylist status impacts all South Africans
The longer a country remains greylisted, the worse the consequences can be. If the necessary reforms are implemented as quickly as possible, the greylisted status can be reviewed by FATF and possibly lifted.
South Africa has agreed to resolve the eight remaining strategic actions by 2025. If everything goes according to plan, the country will be clear. However, it could have drastic consequences if that is not the case.
Investec Bank CEO, Richard Wainwright, commented saying:
“I think in the short term, the consequences will not be that bad and will be relatively immaterial. The impact will really be felt if we don’t get off this list by 2025.”Investec Bank CEO, Richard Wainwright
The good news is that in the short term, South Africans are in a relatively good place to deal with the greylisting verdict. This is thanks to financial forecasts and preparations that factored the possibility of greylisting into costs.
Unfortunately, even slight increases can make a huge difference, with the cost of living already rising staggeringly. In the long term, being greylisted will means that prices will continue to rise. South Africans should prepare for this now by cutting debt wherever possible and building a strong credit score.
Debtline offers a free service to draw your credit report.
Working for the future with Debtline
As more consumers attempt to cut out debt and save money when costs are rising and salaries can’t keep up, tracking details like your credit score is necessary. Pulling a credit report has become common and can help you understand your finances better than ever.
Another way to move towards a brighter future is by tackling debt head-on. Debtline offers consumers a way to become debt free. From negotiating closing payments to protecting their clients, Debtline can offer a helping hand. Here’s how:
- We stand to protect your assets and will negotiate on your behalf.
- Our expert team of NCR-registered debt counsellors dedicate themselves to assisting clients.
- Debtline is South Africa’s most innovative debt management company.
- All your information will remain strictly confidential.
Don’t let SA’s new greylisting status scare you into making more debt. Instead, let us help you become debt-free to ride out any financial situation with peace of mind.