South Africa and Nigeria face special scrutiny for supporting financial crimes. – Global Watchdog.

Africa

South Africa and Nigeria face special scrutiny for supporting financial crimes. – Global Watchdog.

February 25, 2023February 25, 2023

The Financial Action Task Force (FATF), a global organization that monitors financial crime, announced on Friday that it has added South Africa and Nigeria to its so-called “grey list” of nations that must adhere to strict guidelines to stop the financing of terrorism and money laundering.

By establishing international standards and monitoring their observance by nations, the FATF is an intergovernmental organization that supports the fight against money laundering and the financing of terrorism.

The two nations were added to the list after evaluation, according to the FATF, based in Paris.

Being moved to the grey list is a blow to the South African government’s credibility, which has been working to resolve issues the FATF has pointed out.

Experts predict it may also result in increased due diligence checks for South African clients at foreign financial institutions. Additionally, it might make it more difficult for South Africa to get the money and assistance it needs from official lenders and multilateral development organizations.

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