Moving to exit greylist

MINISTER: HARD TO DETERMINE ACCURATE FIGURE OF ILLICIT CASH FLOWS

- Molefe Seeletsa

It is difficult to accurately quantify the economic losses South Africa incurs due to illicit financial flows (IFF), said Finance Minister Enoch Godongwana recently.

South Africa was placed on the Financial Action Task Force (FATF) greylist in early 2023, with the global watchdog citing insufficient efforts to curb illicit financial flows such as money laundering and terror financing. This has subjected the country to heightened scrutiny.

In response to a parliamentary question from African Transformation Movement MP Vuyo Zungula regarding annual losses from IFFs, Godongwana said it was difficult to determine a definitive figure.

"Due to the illicit nature of illicit flows, as well as tax evasion, putting an accurate amount on how much is lost to the fiscus or the economy is difficult, and estimates therefore vary greatly," the minister said.

The inter-agency working group, established in 2017, is implementing measures to address IFFs.

These include making cash declarations at border posts mandatory and tightening border controls to combat cash smuggling.