You may have seen the news headlines announcing that South Africa has been ‘greylisted’ by the Financial Action Task Force (FATF) and are probably wondering what this means for the country, as well as for your own personal finances.

Firstly, we want to reassure you that any savings and investments you have with us are safe and secure, just as they have always been. Old Mutual is confident that our processes and policies to prevent financial crime are robust and in line with international best practice. We are committed to operating with transparency and integrity to ensure that you will continue to achieve the financial goals you have for yourself and your loved ones.

Now, let’s take a closer look at the story behind the headlines.

The FATF is a global organisation based in France that monitors money laundering, proliferation, and terrorist financing. It sets the worldwide standards for addressing these kinds of risks, and countries that do not meet FATF Standards are placed on its ‘grey list’. Simply put, greylisted countries are subject to increased monitoring while they take steps to implement the recommended standards.

Although FATF acknowledged that South Africa has a solid legal framework for combating money laundering and terrorist financing, the country must improve in its efforts to pursue money laundering and terrorist financing transgressions, detect, and seize illicit cash flows and improve the availability of beneficial ownership information.

While it is impossible to know exactly what the impact of South Africa’s greylisting will be, it is important to note that this is not a permanent or irreversible situation. Old Mutual’s proactive risk-based approach should ensure minimal disruption for our customers, and business activities will continue as normal.

We are encouraged by the recognition from FATF of the progress made by the Prudential Authority in the application of a risk-based approach to supervision. As a result, there are no action plans that relate directly to preventive measures in respect of the financial insurance sectors.

We also remain committed to working with our regulators to maintain the integrity of our regulatory environment in South Africa and to manage the risks associated with money laundering, proliferation and terrorist financing activities and will continue to work with law enforcement agencies to support them in their efforts.

We also support government’s efforts to rebuild the institutions that were weakened during state capture. This is essential to addressing crime and corruption in South Africa.

If you have any questions, please feel free to contact your financial planner or call our dedicated service centre on 0860 234 234 (+27 21 503 1770 from outside South Africa) or send an email to unittrusts@oldmutual.com.