Cape Town – Finance Minister Enoch Godongwana says efforts are under way to remove the country from the Financial Action Task Force (FATF) grey list.
The Financial Intelligence Centre (FIC) has been allocated over R265 million to implement FATF recommendations. South Africa was added to the grey list due to concerns about money laundering and terrorism financing.
“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 said.
The government is taking steps to address weaknesses in the legal system and strengthen supervision of non-financial businesses.
“The National Treasury, as the lead in the Interdepartmental Committee on Anti-Money Laundering and the Combating of the Financing of Terrorism, continues to coordinate government-wide efforts to comprehensively address the remaining weaknesses in our legal system,” he said.
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Updates have been submitted to the FATF, and positive re-ratings of technical compliance are expected within six months.
The National Treasury has been allocated R34.9 billion for the 2023/24 financial year, with a focus on fostering economic growth, addressing fiscal vulnerability, and stabilising public finances.
“Because of the dire economic situation, urgent and considered actions are required. The Budget Vote of the National Treasury aims to contribute to fostering higher and more inclusive economic growth, address fiscal vulnerability and stabilise public finances. These are preconditions for addressing poverty and unemployment,” Godongwana said.
The majority of the budget will be allocated to transfers and subsidies, including support for the South African Revenue Service (SARS).
The Minister emphasised the need to restore integrity in municipalities and highlighted interventions to address financial and service delivery crises.
The professionalisation of municipal administration, including the training of financial officers and managers, is a critical aspect of resolving these issues.
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Compiled by Betha Madhomu