Mashile Phalane Investigates:
On the 15 May 2025, a research focus group was assembled at Maruleng Youth and Development Centre that include most non registered or voluntary groups including churches that form part of the focal group for the Inyathelo Research on Grey Listing by international body of Financial Action Task Force ( FATF) to South African Government.
The purpose was to undertake and assess the measures undertaken to remove South Africa out of Grey Listing which has impact in borrowing funds and Trading
As South Africa is a signatory to Financial Action Task Force ( FATF), it steady implement the outcome measures that has placed the country in Grey listing by the international body. Recommendation eight (8) require Government to first identify the NPO’s that fall within the FATF definition and identify at risk based on the inherent vulnerabilities.
The risk for vulnerability include money laundering, terrorism financing and combating of abuse of PBO,s in South Africa.
The Research found that many non registered and voluntary non-profit sector knew nothing about Grey Listing or the enforcement from FATF. After explanation from the facilitator who was appointed by Inyathelo in Limpopo Refilwe Seoka the group now opened its eyes and understands the impact of the grey listing.
The selection of the participants include from local money lender ( Mashonisa), Church Leader, Music DJ, Agricultural Co-op and Non-profit organization which are not registered.
According to the members, they first aknowledge their participation in the matter which was not known to them and secondly need to unlock the process of having better financial accounts which the banks understand that it is for community upliftment and development. So the banking system must offer non-profit sector affordable banking services. Therefore
the Department of Treasury and Financial Intelligent Centre together with organized Civil Society Unmute Coalition of South Africa and Banking Association must able to arrange such negotiation in which non-profit sector could benefit.
The other important aspects was to have single registry of Non-Profit Sector, currently Department of Social Development is the one which doing the service but recently Company Intellectual and Property Register Organisation offer such service as Non-Profit Company which is a conflict or dual role of service to the public. The research group recommend the scraping to Cipro registration and reserve it as only for companies.
The group felt that many money laundering scheme happened in the Non-Profit Companies rather than Non-profit organization. In the Lottery scandals individual staff members hijacked some of the Non-profit organization without knowledge of the registered members. Such collusion must be prosecuted without impunity.
NGO’S plays very vital role in the welfare and development of their communities but it must be coordinated and strengthened through a coordinated structure.
