Foreigner-run spaza shops that are allegedly funding billions of rands to terrorists in North Africa and money laundering activities taking place in South Africa has led to greylisting of SA

Foreigner-run spaza shops that are allegedly funding billions of rands to terrorists in North Africa and money laundering activities taking place in South Africa has led to greylisting of SA. 

Greylisting is expected to hike the cost of doing business in South Africa.

TimesLIVE reported last year on: ‘How R6bn got from spaza shops to African terrorists. Payment systems meant to facilitate remittances from SA, but sudden large transactions started raising flags’.

Money laundering in the RSA is a hot spot for money laundering related activities, including the narcotics trade, smuggling, human trafficking, and diamond dealings. SAG estimates that between $2 and $8 billion is laundered each year through SA financial institutions.