R265 million set aside to get South Africa off ‘Grey List’

Finance Minister Enoch Godongwana says the Financial Intelligence Centre (FIC) has been allocated more than R265 million over the medium-term, in an effort to get the country off the grey list.

Delivering his Budget Vote speech in Parliament on Tuesday, Godongwana said this forms part of the response measures to the recent placing of the country on the Financial Action Task Force (FATF) grey list.

“As part of the response measures to the recent placing of the country on the grey list, the Financial Intelligence Centre has been allocated additional funding of more than R265 million over the medium-term to implement the Financial Action Task Force’s recommendations and get the country off the grey list,” Godongwana explained.

Earlier this year, the Paris-based anti-money laundering watchdog added South Africa to its list of countries that will be monitored to ensure the implementation of anti-money laundering and terrorism funding regulations.

Godongwana said that government will implement the Financial Action Task Force’s recommendations, with his department providing periodic updates to Cabinet on progress.

Last year, the Minister said, government led an unprecedented process to pass an omnibus of statutory amendments that address the gaps in SA’s anti-money laundering regime.

He mentioned that one of the many examples is the frozen assets of individuals and entities designated by the United Nations to be linked to ISIS, the Taliban and al Qaeda.