Inclusion of South Africa on AML blacklist requires ESMA to withdraw the recognition decision of JSE Clear

Summary:

The European Securities and Markets Authority (ESMA) has withdrawn its recognition decision of JSE Clear, a central counterparty (CCP) established in South Africa, effective December 29, 2023. This decision follows the addition of South Africa to the European Commission's list of high-risk third countries presenting strategic deficiencies in their anti-money laundering and counter-terrorism financing (AML/CFT) regime. ESMA has provided a three-month adaptation period to minimize potential market disruption. From the effective date, JSE Clear will no longer be permitted to provide clearing services to clearing members or trading venues established in the EU.