The Financial Action Task Force (FATF) is an international body that promotes policies and standards for combating money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. South Africa has been a member of the FATF since 2003 and is one of 39 member countries. The members of the FATF have collectively set international standards for measures which countries should implement to combat money laundering and terrorist financing.
The FATF recently published its Mutual Evaluation Report after an assessment of South Africa’s systems for anti-money laundering, counter financing of terrorism and counter financing of proliferation (AML/CFT/CPF). The FATF’s mutual evaluations are reports analysing the implementation and effectiveness of a country’s measures to combat money laundering and terrorist financing. The report summarises the AML and CFT measures that the country has in place, the level of effectiveness of these systems and provides recommendations on how the system could be strengthened. Furthermore, it analyses the level of compliance with the FATF Recommendations.
The mutual evaluation of South Africa, which commenced in April 2019 and was concluded in May 2021, was conducted by an assessment team led by the International Monetary Fund, which included officials from the Eastern and Southern African Anti-Money Laundering Group and the FATF member countries. This was the third mutual evaluation conducted on South Africa, following those conducted in 2003 and 2009.
The report identified that there are significant shortcomings in implementing an effective system, as well as a failure to pursue serious cases. South Africa is expected to take remedial steps within 18 months to address the deficiencies identified in the report.