  We comment on the implications of the recently measured CP asymmetry in B -->
Phi K_S decay. The data disfavor the Standard Model at 2.7 sigma and -if the
trend persists in the future with higher statistics - require the existence of
CP violation beyond that in the CKM matrix. In particular, the b --> s bar{s} s
decay amplitude would require new contributions of comparable size to the
Standard Model ones with an order one phase. While not every model can deliver
such a large amount of CP and flavor violation, those with substantial FCNC
couplings to the Z can reproduce the experimental findings.
