Tag: grey listing

We welcome the decision by the Financial Action Task Force (FATF) to remove South Africa from the list of jurisdictions under increased monitoring, also known as the “grey list”. The FATF announced this decision on Friday, 24 October, at the conclusion of its plenary held from 20 to 24 October 2025. This announcement came 32 months after our country was placed on the grey list in February 2023.

With inflationary pressures moderating and economic challenges persisting, monetary authorities will prioritise gradual rate cuts in 2025. This deliberate pace reflects a balance between stimulating economic growth and avoiding financial instability. For example, the Federal Reserve and the European Central Bank may follow similar trajectories.

Designated Non-Financial Businesses and Professions (DNFBPs) registered with the Financial Intelligence Centre (FIC) have shown positive efforts. Importantly, their commitment has significantly contributed to progress. And as a result, South Africa is now closer to exiting the Financial Action Task Force (FATF) grey list.

The impact of excessive government regulation and control is the harm to businesses and employees caused by excessive workloads and stress. This reduces productivity, morale and overall efficiency in public services. The state is intended to function in an efficient, economical and effective manner.

This vidcast dives into greylisting and its impact on asset managers and investment mandates. We reference the struggles experienced by the Public Investment Corporation (PIC) and the potential impact on returns that greylisting could continue to have. 

With 2024 being the first year that trust taxpayers are tasked with submitting third party IT3(t) returns to South African Revenue Service (SARS) by 30 September 2024, this change of the filing season could potentially offer a silver lining for trust taxpayers, granting them additional time to prepare for their 2024 tax return filing along with the added compliance measures that come with the submission.

On 27 June 2024, the South African Revenue Service (SARS) announced its enhanced Beneficial Ownership disclosures for the 2024 Filing Season. Not even 24 hours later, the Companies and Intellectual Property Commission (CIPC) issued a media release enforcing beneficial ownership (OB) declaration, to be able to file annual returns. This may simply be a compliance coincidence, but more likely a strategic move to eradicate non-compliance for companies, trusts, and partnerships, on all levels.

In today's dynamic business environment, entrepreneurs are at the forefront of reshaping industries. They challenge conventional norms, redefine traditional practices and drive forward innovation. Yet, to turn their groundbreaking ideas into reality, entrepreneurs often need financial support. This is where funding becomes pivotal, enabling businesses to scale their operations and make their mark on the world.

Despite being viewed as an administrative and burdensome expense with excessive paperwork sometimes causing potential delays to establishing business relationships and concluding transactions, Financial Intelligence Centre Act (FICA) compliance is more crucial than ever.

Gone are the days of box-ticking. The Financial Sector Conduct Authority (FSCA) has recently imposed administrative sanctions on two financial services providers (FSPs), in each case for failing to comply with certain provisions of the Financial Intelligence Centre Act (FICA).