Latest News & Developments
The South African rand has demonstrated exceptional strength against the US dollar, outperforming 14 major currencies over the past year. This remarkable resilience, driven by post-election reforms and strong export performance, signals a positive shift in South Africa's economic landscape
The Companies Intellectual Property Commission reports substantial progress in addressing FATF greylist requirements, with successful implementation of the Beneficial Ownership Register and enhanced law enforcement capabilities.
With a 2025 deadline looming, the country's efforts to strengthen its financial systems could restore its international investment standing
With six critical items remaining before the February 2025 evaluation, the country races against time to exit the greylist and restore its international financial standing.
Explore how South African businesses can combat the rising threat of money laundering and protect their operations from criminal activities.
With the FATF deadline less than a year away, South Africa needs to buckle up, not only to ensure that it successfully deals with the remaining deficiencies on the FATF list, but that it also ensures that South Africa adheres to, and complies with international standards of the monitoring and management around the prevention of money laundering, terrorist financing and proliferation financing.
It seems to me that the elephant in the room is the tension between the undeniable potential of blockchain technologies to help the world reimagine economic futures off-line and the dizzying magnitude of the capitalist opportunity to profit from digital assets, says the author.
The most industrialised country in Africa has to eradicate remaining bottlenecks by early 2025 to exit the Grey List, failing which higher risk premiums for businesses and capital outflows are on the cards.
OPINION: Minister of Finance Enoch Godongwana doesn’t seem to mind cutting poor people’s income, lying that “To keep pace with inflation and increase access, permanent social grants are increased,” writes Prof. Patrick Bond.
What progress has been made since then by the government and regulatory bodies to get the country off the greylist?
OPINION: In February 2023, marking a year since Russia’s incursion into Ukraine, FATF took the decisive step of suspending Russia’s membership, showcasing the organisation’s dedication to maintaining principles, even amid global turmoil, writes Zakhele Hlophe.
These companies could face millions of rands in fines for continued non-compliance with their obligations required to remove South Africa from being greylisted.
The international community keenly watches as South Africa faces the challenges of aligning with global standards to regain its financial credibility, says the writer.
The commission’s Divisional Manager for Cartels, Makgale Mohlala, told the SABC: “Standard Chartered has undertaken to co-operate with the commission in the prosecution of the other respondent banks. ”
There seems to be huge confusion and various interpretations of which types of trust beneficiaries to include as “beneficial owners” after new measures were hastily introduced in an attempt to avoid greylisting and meet the Financial Action Task Force’s (FATF) requirements.
Durban bankers Brandon Naicker and Jason Pillay, once lauded for their financial expertise, are now under scrutiny for a R180m Ponzi scheme. Their companies, located in the affluent uMhlanga district, deceived pensioners with promises of high returns.
The greylisting of South Africa by the Financial Action Task Force (FATF) was announced on February 24 this year, two days after the 2023 Budget Speech.
As a result of recent changes, the tax practitioner now has to submit a list of information to the South African Revenue Service (Sars) with the trust tax return. This includes the latest trust deed, resolutions, minutes of the trustee meetings and so forth. For example, if the trust deed requires the trust to meet at least every quarter, it will be expected of the tax practitioner to submit four sets of signed minutes of trustee meetings. Sars also asks some uncomfortable additional questions on the tax return which it labels “risk questions”.
Finance Minister Enoch Godongwana said new Director-General Duncan Pieterse will be central in shaping fiscal policy, economic direction and financial stability of the country.
Minister in the Presidency Khumbudzo Ntshavheni confirmed that Duncan Pieterse has been appointed to head the National Treasury ending weeks of speculations.
Earlier this year, South Africa was greylisted by the Financial Action Task Force (FATF) for failing to comply with international standards concerning the prevention of terrorist funding, money laundering, and proliferation financing. The decision, which came despite a last-minute scramble by the government to return to compliance, was a body blow to an already struggling economy. By Harry Scherzer, CEO, Future Forex
LETTER: The South African Reserve Bank raised warning bells last week regarding the threat of secondary or indirect sanctions that could be imposed as a result of our recent foreign policy decisions.