South African banking group Standard Bank announced on Monday that South Africa is likely to be excluded from the global financial system if the Financial Action Task Force (FATF) puts it on its blacklist.

South Africa is at risk of being flagged by the FATF because of its poor performance in combating money laundering and terrorist financing. According to the Group's director general, Sim Tshabalala, this "would certainly lead to South Africa being blacklisted by the United Kingdom and the European Union (EU), which would expel the country from the global financial system.

The South African government has until February 2023 to turn the situation in its favor, otherwise "the local currency, the rand, will weaken, inflation will soar and interest rates will rise," according to Sim Tshabalala. These fears are shared by Busisiwe Mavuso, executive director of the Business Leadership South Africa (BLSA), who warns that the country is at risk of increased controls.She warns that the country risks being plagued by increased controls on cross-border transactions, affecting imports and exports, as well as the "reputation" of the financial system and the smooth functioning of the country's banks.