[ad_1]
South Africa has to deal with the consequences of being added to the Financial Action Task Force (FATF) grey list, and technology needs to be at the centre of compliance in combating money laundering and terrorism financing.
This is according to leaders in the country’s banking sector, who came together last week to discuss collaborative efforts to help South Africa exit the grey list.
Read:
South Africa was added to the grey list – in February – for falling short on measures aimed at countering activities related to money laundering and the financing of terrorism. The FATF’s findings culminated from a peer review process that began in 2019.
Its review of South Africa led to the financial watchdog initially presenting the country with 67 recommended actions. Having dealt with only 59, South Africa must still tackle eight strategic deficiencies before a deadline of January 2025.
During a roundtable event in Johannesburg, Cengiz Kiamil, VP of Strategy at Fenergo, a technology firm that helps financial services firms reduce risk and manage compliance, said the industry needs to be practical in solving current challenges.
“South African banks will no doubt comply with current and new legislation, but one of the key themes to emerge is that the compliance will need to be driven by technology and it needs to be pragmatic to solve real-world problems,” he said.
As part of SA’s efforts to meet the FATF standards, a new wave of regulations was pushed through at the end of last year, helping the country close some of the loopholes that existed in its regulatory framework.
Kiamil said technology, coupled with the ability to automate functions effectively, perfectly positions South Africa’s banks to deploy their valuable human capital more strategically.
Some of the technology available, he said, could help banks to achieve compliance far more efficiently and cost effectively.
Ireland’s ambassador to South Africa Fionnuala Gilsenan said a measured approach needs to be adopted as the country responds lest it over-calibrate.
Read:
[ad_2]
Source link
(This article is generated through the syndicated feed sources, Financetin doesn’t own any part of this article)
