FATF Greylisting: SA’s positive progress as at October 2024

FATF Greylisting: SA’s positive progress as at October 2024

• 05 November 2024
• Regulatory Compliance and Legislation
• South African Accounting Academy

Summary:

According to a media statement released by National Treasury, the Financial Action Task Force (FATF) Plenary has announced 9 upgrades for South Africa from its 22-item Action Plan, including 8 to “largely addressed” and 1 to “partly addressed”.

Article:

South Africa is now deemed to largely or fully address 16 of the 22 action items in its Action Plan, leaving the country with 6 outstanding action items to be addressed for the last scheduled reporting cycle, concluding in February 2025.

If South Africa is successful in addressing all remaining action items in the next reporting cycle, the February 2025 FATF Plenary will authorise an onsite visit by the FATF Africa Joint Group to confirm their assessment on the progress of all action items. This would happen around May 2025. If the onsite assessment results in a positive outcome, the FATF Africa Joint Group will recommend to the June 2025 FATF Plenary that South Africa be delisted from the FATF grey list. However, if the FATF Africa Joint Group assesses that South Africa has not adequately addressed all remaining action items in February 2025, South Africa will be required to continue reporting back to the FATF Africa Joint Group every four months until all the action items have been addressed. Hence the exit from greylisting will be moved from June 2025 to October 2025, or later.

Annexure FATF (setting out South Africa’s Action Plan) can be accessed at https://www.treasury.gov.za/comm_media/press/2024/2024102501%20Annexure%20FATF.pdf

Click here to download the Media Statement:

https://www.treasury.gov.za/comm_media/press/2024/2024102501%20Media%20Statement%20FATF%20Greylisting%20South%20Africa%E2%80%99s%20Positive%20Progress%20as%20at%20October%202024.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• FICA is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• Auditors, Independent Reviewers and Accountants should be aware of the latest publications and guidance issued by regulators, such as the FATF.
• As an accountable institution, a business owner and individual, you need to be aware of developments in respect of our country’s greylisting.

Relevance to Your Clients:

• An accountable institution, as well as an entity (company or close corporation), has a duty to comply with the FICA, otherwise they could be held liable.
• As an accountable institution, a business owner and individual, you need to be aware of developments in respect of our country’s greylisting.

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