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Grey listing South Africa and why is it important?

Updated: Feb 25

Dear reader, you would have seen that South Africa has been GREY LISTED, this means that we have been added to the list of jurisdictions that does not do enough to combat anti-money laundering.

Coins and notes

Grey Listing: What it means for South African Investors;

Grey listing refers to a situation where a country is placed on a list of nations considered to be non-compliant with international tax regulations by the Financial Action Task Force (FATF). Such a listing could have significant implications for investors in South Africa.

The FATF is a global organization that was established to combat money laundering, terrorist financing, and other forms of financial crime. It monitors the compliance of countries with international standards on combating financial crime, and countries that fail to meet these standards are placed on a grey list.

Being placed on the grey list can have significant consequences for South African investors. For example, financial institutions may be required to conduct enhanced due diligence on customers who are residents of grey-listed countries. This may result in delays in opening accounts or accessing financial services.

Additionally, being placed on the grey list may have a negative impact on a country's economy. This is because it can discourage foreign investment and result in increased borrowing costs. In turn, this could lead to a decline in economic growth and job creation, as well as a decrease in the value of the country's currency.

South Africa has been on the FATF's grey list in the past, and it is important for investors to be aware of the potential implications of such a listing. Investors should stay informed about the country's compliance with international tax regulations and monitor any changes in the country's status on the FATF's list.

In conclusion, grey listing can have significant implications for South African investors. It is important for investors to understand what grey listing means and how it could impact their investments. Staying informed about changes in a country's status on the FATF's list can help investors make informed decisions and mitigate potential risks.

I hope that you have found value in this summary.

Best wishes

Wallstreet Financial Services


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