JOHANNESBURG - South Africa has been added to the Financial Action Task Force's list of greylisted countries.
This means the country is on the list of nations that have failed to adequately put in place measures to tackle illicit financial outflows.
READ: South Africa greylisted
The greylisting is likely to put a massive dent in South Africa's GDP.
The Financial Action Task Force found that South Africa was partially compliant or non-compliant with 20 of its 40 recommendations.
READ: SA's economic trouble | Implications of being greylisted
The global watchdog says South Africa has agreed to work with the organisation to address any identified deficiencies.
During his Budget Speech, Finance Minister Enoch Godongwana warned the country to prepare for the possibility that it could be greylisted.