South Africa participated in the third meeting of the Financial Action Task Force (FATF) session XXVIII, in Valencia from 18 to 23 June 2017. At this meeting the FATF continued work on a number of important initiatives relating to its mandate to promote effective implementation of measures against money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The FATF considered the 13th Mutual Evaluation Follow-up Report on South Africa’s process to remedy deficiencies identified in the 2009 mutual evaluation. These deficiencies relate to gaps in legislation on adequate customer due diligence and record-keeping measures. FATF members noted that the President of South Africa has assented to the FIC Amendment Act and that the Minister of Finance has announced the commencement dates for certain sections of the Act.
Since the legislative process to pass the FIC Amendment Act has been concluded, and the process to bring the Amendment into operation is underway, the FATF members agreed not to increase the pressure on South Africa. However, South Africa will be required to report again at the next Plenary meeting scheduled to be held in October 2017.