To really understand the “greylisting” issue, we have to go back into deep history. The year is 2012 and SA politics is about to be shaken up because the popular leader of the ANC Youth League, Julius Malema, had been kicked out of the party late the previous year.
Now, one can be a little cynical here. As an ANC member, Malema seemed to have no problems with the taxman. But the moment he was booted, suddenly he got slapped with a huge tax bill. In any event, Malema reached a compromise with SARS and agreed to pay some tax. As it turns out, his payments were a little irregular, and in 2016 SARS said he owed R18-million. So that’s the tax issue: what about the original tender? Good question, to which there is no answer.
Attentive news junkies probably know the facts, but just to recap quickly, the global anti-money laundering entity, the Financial Action Task Force, has issued SA with a deadline for it to come up with rules to prevent money laundering. If the deadline is missed, which now seems very likely, SA will be “greylisted”. That will, according to some research, increase the costs of financial transactions and doing business, and as a result, shave perhaps a percentage point off economic growth.
There is also associated anti-terrorism funding legislation, which is equally widely framed, and generally gives us old-timers the creeps because it reminds us of draconian State of Emergency legislation.
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