By Busi Mavuso
The announcement last week that South Africa has successfully exited the Financial Action Task Force grey list is cause for genuine celebration.
More importantly, it offers critical lessons about what works when we get serious about reform.
When grey listing was a serious risk already in 2022, BLSA commissioned research showing the economic impact could range from under 1% of GDP if we reacted fast and credibly, to 3% of GDP if we were slow and unwilling to meet FATF standards.
We warned that the reputational damage would be significant, including enhanced due diligence requirements for all transactions between South Africans and the rest of the world, potential loss of foreign banking relationships, and reduced appetite for investment.
The good news is that we have managed to keep the impact to the bottom end of that estimate, thanks to our determined and credible effort over the last 32
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