Topic: Greylisting creates new risks
for companies - are you
exposed?
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South Africa has been
greylisted by global
financial crime watchdog the
Financial Action
Task Force (FATF) for
not fully
complying with
international standards
around the
prevention of
money laundering and
terrorist financing.
This will have a
negative impact on the
economy, specifically
because it will
raise the cost of
capital and
frighten away
investors.
The question is:
what happens next?
The South Africa
government has
moved swiftly to
address the
eight areas of
strategic deficiencies identified by the
FATF by introducing
new legislation in
the form of
amendments to the
Financial Intelligence Centre Act,
2001 (FICA)
and related laws.
These amendments have
created a number of
new categories of
“accountable institutions” which means
all companies need to
review their
current position and
reassess their
status as they
may now fall within
one of the
new categories of
“accountable institution”.
If they do, the company
must fulfil the
new FICA requirements failing which they may be
subject to
significant penalties, including
imprisonment for a
period not exceeding 15 years or a
fine not exceeding
R100 million.
In this session we will discuss the
strategic deficiencies identified by the
FATF and the
new categories of
accountable institutions
as well as the steps to
take to
mitigate your
risks and
fulfil the new
FICA requirements.
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