https://www.capetownetc.com/news/r265-million-allocated-to-get-off-anti-money-laundering-watchdog-grey-list/

The Financial Intelligence Centre (FIC) allocated more than R265 million over the medium term in an effort to get South Africa off the grey list.

During his budget vote speech in parliament on Tuesday, finance minister Enoch Godongwana says this move is but one of several measures to get off the Financial Action Task Force (FATF) radar. The Paris-based anti-money laundering watchdog added South Africa to its list of countries that need to be monitored to ensure that anti-money laundering and terrorism funding regulations are implemented, Businesstech reports.

‘As part of the response measures to the recent placing of the country on the grey list, the Financial Intelligence Centre has been allocated additional funding of more than R265 million over the medium term to implement the Financial Action Task Force’s recommendations and get the country off the grey list,’ says Godongwana.

He added that government will implement the FATF’s recommendations. His department will provide Cabinet with periodic updates on this progress.

‘The National Treasury, as the lead in the Interdepartmental Committee on Anti-Money Laundering and the Combating of the Financing of Terrorism, continues to coordinate government-wide efforts to comprehensively address the remaining weaknesses in our legal system,’ he says, referring to last year when the government led an ‘unprecedented process’ to pass an omnibus of statutory amendments to address shortfalls in the country’s anti-money laundering regime.

To this end, Godongwana cited the frozen assets of individuals and entities designated by the United Nations to be linked to ISIS, the Taliban and Al Qaeda as an example. ‘We have also strengthened the systems needed to identify the beneficial owners of businesses and trusts so that they cannot hide behind the veil of corporate secrecy when engaged in money laundering.’

He added that these updates have been submitted to the FATF, and that a positive re-rating of South Africa’s technical compliance with FATF standards is expected over the next six months.