Funding Terrorists & Allowing Money Laundering
In February 2023, both South Africa and Nigeria were added to the grey list of the Financial Action Task Force due to shortcomings in their efforts to combat money laundering and terrorist financing.
This designation means that banks and financial institutions in these countries will undergo additional scrutiny and compliance measures, potentially leading to higher fees for consumers down the line.
Both countries will need to address the identified deficiencies and demonstrate progress in improving their anti-money laundering and counterterrorism financing frameworks to get off the list.
SA has already managed to action 15 out of 20 identified areas but the efforts were not enough to avoid the grey listing as expected.