SARS and Verto applaud FATF’s decision to remove South Africa from greylist

The South African Revenue Services (SARS) and the provider of cross-border payment solutions for businesses, Verto, have both welcomed the Financial Action Task Force's (FATF) decision to officially remove South Africa from its list of Jurisdictions under Increased Monitoring, commonly known as the "greylist."

On Friday, the Financial Action Task Force (FATF) confirmed that it has removed South Africa from the grey listing, after the country managed to meet all the required anti-money laundering recommendations set out for it.

South Africa was placed under this list by the global financial crime watchdog in February 2023, for the country’s failure to comply with international standards around the prevention of money laundering and terrorist financing.

South Africa is among three other African countries removed from the list, including Nigeria, Burkina Faso, and Mozambique.

Martin Slabbert, speaking on behalf of the cross-border payment solutions organisation, said when South Africa was initially placed on the greylist in February 2023, Verto noted the potential for increased scrutiny and rising compliance costs for businesses engaging in cross-border transactions to and from the country.

Slabbert revealed that this important step signals a crucial return to a more favourable operating environment.

"The greylisting created a layer of complexity and friction for South African businesses operating internationally, primarily through the heightened due diligence requirements imposed by global financial partners," said James Booth, Head of Revenue at Verto.

"South Africa’s diligent and swift action to implement the necessary reforms is a monumental achievement that has paid off. We congratulate the National Treasury and all associated regulatory bodies."

The revenue collector said it is proud to have supported the country’s efforts to reverse the greylist through the national effort to meet the 22 action items required by the FATF.

Among the requirements was for the country to enhance its investigation and collaborative recovery, introduce key legislative amendments, and roll out a traveller management system, among many other interventions.

“While the FATF's initial grey-listing in February 2023 was a consequence of systemic weaknesses aggravated during the era of state capture, SARS is acutely aware that it, along with other key institutions, was impacted and must continue to play a crucial role in preventing any future regression.

"Commissioner Edward Kieswetter notes that “we recognise that removing the designation of grey listing is not a finish line but a milestone on a long-term journey toward building a robust and resilient financial ecosystem,” the revenue collector said in a statement.