{"id":18087,"date":"2023-02-26T11:40:27","date_gmt":"2023-02-26T11:40:27","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/south-africa-added-to-fatf-grey-list-despite-designation-of-crypto-as-a-financial-product-africa-bitcoin-news\/"},"modified":"2023-02-26T11:40:27","modified_gmt":"2023-02-26T11:40:27","slug":"south-africa-added-to-fatf-grey-list-despite-designation-of-crypto-as-a-financial-product-africa-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/south-africa-added-to-fatf-grey-list-despite-designation-of-crypto-as-a-financial-product-africa-bitcoin-news\/","title":{"rendered":"South Africa Added to FATF ‘Grey List’ Despite Designation of Crypto as a Financial Product \u2013 Africa Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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In a move seen as a major setback for South Africa, the international financial watchdog, the Financial Action Task Force, announced on Feb. 24 that it had added the country to its \u201cgrey list.\u201d Getting grey-listed by the financial watchdog potentially makes it difficult for South Africa to obtain loans from foreign banks.<\/strong><\/p>\n

A Setback for South Africa<\/h2>\n

The global financial crimes watchdog, the Financial Action Task Force (FATF), has added South Africa to its grey list, which is a group of countries that are \u201ccommitted to resolving swiftly the identified strategic deficiencies within agreed timeframes.\u201d According to one report, the inclusion of South Africa in the FATF\u2019s so-called grey list is a major reputational setback for the country which has been eager to avoid being added to the list.<\/p>\n

As reported<\/a> by Bitcoin.com News, a South African financial industry regulator designated crypto as a financial product after the FATF reportedly voiced its concerns over the lack of regulation of such assets. At the time, some commentators suggested that this move would help South Africa avoid getting grey-listed.<\/p>\n

However, in its Feb. 24 statement<\/a>, the South African Reserve Bank (SARB) seemingly acknowledged that the country has not done enough to avoid getting grey-listed. The bank nevertheless vowed to \u201cstrengthen its supervision and further enhance the dissuasiveness and proportionality of administrative sanctions issued.\u201d<\/p>\n

Potential Impact on Flow of Capital<\/h2>\n

The SARB added that banks and other financial institutions also have a role to play in resolving the deficiencies identified by the FATF.<\/p>\n

\u201cThe SARB expects banks and other financial institutions within its purview to comply fully with all their obligations and applies a high standard of supervision that is necessary to safeguard and protect the integrity of the financial system. These actions, when coupled with measures and actions undertaken by law enforcement and other authorities within South Africa, serve to achieve an effective AML\/CFT\/CPF system,\u201d the central bank said.<\/p>\n

According to a Reuters report<\/a>, being on the FATF\u2019s grey list could potentially make it hard for South Africa to secure loans from foreign banks perturbed by the watchdog\u2019s move. The report also quotes an International Monetary Fund document from 2021 which suggested that countries on this list will sometimes see the flow of capital into their respective economies getting disrupted.<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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