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<\/a><\/figure>\n\n\n\n\u201cFollowing these re-ratings, South Africa is now deemed to be fully or largely compliant\u201d in 35 of FATF\u2019s 40 recommendations, including five of the watchdog\u2019s six core recommendations, the Treasury said.<\/p>\n\n\n\n
South Africa\u2019s addition to the grey list followed an era of endemic corruption \u2014 referred to locally as state capture \u2014 during former President Jacob Zuma’s nine-year rule that\u2019s estimated to have seen the looting of at least R500 billion in taxpayer funds.<\/p>\n\n\n\n
Its inclusion requires that financial transactions with a South African component are subject to enhanced due diligence.<\/p>\n\n\n\n
\u201cWhile the immediate impact is higher processing, monitoring and reporting costs, the long-term consequence will be the reduction of South Africa\u2019s attractiveness as an investment destination,\u201d the central bank said in its latest Financial Stability Report on Wednesday. <\/p>\n\n\n\n
\u201cHowever, the risk is mitigated by the resilience of the financial sector, compliance with international regulatory standards and the efforts being made to address the adverse findings of the FATF.\u201d<\/p>\n\n\n\n
The Paris-based body has given South Africa until the end of January 2025, to address the shortcomings. <\/p>\n\n\n\n
Meeting the remaining targets will require \u201ca significant effort\u201d from all relevant authorities in South Africa, the Treasury said.<\/p>\n\n\n\n
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