SACU expects to avoid SA greylisting spillover

Under threat: South Africa’s greylisting will increase the payments and settlements period for financial transactions, impacting on trade within the region
Under threat: South Africa’s greylisting will increase the payments and settlements period for financial transactions, impacting on trade within the region

Finance ministry technocrats do not expect the greylisting of the region’s biggest economy to significantly impact Southern African Customs Union (SACU) activity and revenue, incomes which are critical for member states such as Botswana.

The Financial Action Task Force (FATF), the world’s leading anti-money laundering organisation, recently greylisted South Africa citing deficiencies in the country’s ability to prevent the flow of dirty money in its systems. The FATF greylisted Botswana between 2018 and 2021, only lifting the label after government and Parliament fast-tracked more than a dozen new laws and amendments, to plug the identified weaknesses.

For Botswana, the greylisting prompted an automatic blacklisting by the European Union and proved a disincentive for investment, while also increasing the due diligence on payments to and from the country, making these take far longer than should have.


Editor's Comment
CoA brings sanity to DIS/DCEC long-standing feud

This decision follows the raiding of the office of the former Director General of the DCEC, Tymon Katlholo early 2022 and his staff officer by the DIS operatives who reportedly took files that they had targeted.After all back and forth arguments, the CoA has set the record straight giving an invaluable lesson to the DIS that it was no super security organ and it does not have any powers to cogently supervise other security organs including the...

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