The South African government has expressed joy after the country was removed from the dreaded Financial Action Task Force greylist.
This comes after the country was placed on the greylist in 2023 due to deficiencies in the country’s anti-money laundering and counter-terrorism financing regime. According to National Treasury, the removal is an outcome of a marathon meetings with government officials and FATF.
“The Financial Action Task Force (FATF) today announced that South Africa has exited the FATF greylist, formally called the list of ‘Jurisdictions under Increased Monitoring’,” said National Treasury in a media statement.
FATF Plenary meeting
“This follows the conclusion of meetings of the FATF Plenary that took place over 22-24 October 2025 in Paris, France.
“Over the past 32 months, South Africa has engaged with a team of reviewers assigned by the FATF to assess progress against the action plan. This culminated in an on-site visit at the end of July 2025. That was when the assessors came to the country to confirm the sustainability of the reforms that had been reported to them.
“This concluded with a meeting with Deputy Minister of Finance, Dr David Masondo, and Deputy Minister of Justice and Constitutional Development, Mr Andries Nel, who assured the FATF of the South African government’s political commitment to continue to sustainably improve the country’s Anti-Money Laundering and the Combating the Financing of Terrorism (AML/CFT) system.
“National Treasury congratulates all relevant government departments and government agencies on the success of their individual and collective efforts. And acknowledges their commitment to ensuring that the country exits the FATF greylist.
National Treasury also acknowledges the support and guidance received from ESAAMLG, support from the private sector, including regulated institutions, as well as the technical assistance from the EU, UK, USA, Switzerland and the World Bank.
“We would also like to thank the members of the FATF Africa Joint Group, who displayed a high level of professionalism and fair-mindedness as they assessed South Africa’s progress. As well as the FATF Secretariat, for managing a complex process with a high degree of efficiency.
Nigeria, others also removed
“National Treasury would also like to congratulate Nigeria, Mozambique and Burkina Faso, which were also delisted from the FATF greylist this week.
“South Africa’s progress in addressing the AML/CFT deficiencies and exiting the FATF greylist represents a major policy and institutional achievement for the people of South Africa. Particularly following the weakening of key law enforcement and other institutions during the state capture era.
“However, while exiting the greylist is an important milestone and a demonstration of South
Africa’s commitment to rebuilding the rule of law, this is only the start of a broader process to continue to strengthen key institutions. To improve enforcement and governance processes. And to ensure that such improvements are sustainable. And that our systems become increasingly effective in combating money laundering, terrorism financing, and proliferation financing.
“Neither government agencies nor regulated entities in the private sector can afford to become complacent and stop improving. Instead, through public-private collaboration, they must continue to strengthen the AML/CFT system.
“The FATF requires countries that have exited the greylist to demonstrate continued commitment through measurable outcomes, including successful investigations, prosecutions, and sanctions as they relate to AML/CFT. These actions will form the basis of the next FATF Mutual Evaluation for South Africa, which is expected to commence in the first half of 2026 and conclude in October 2027.
“To prevent being placed back on the greylist, it is important that systems of monitoring
and enforcement work more efficiently and effectively, and that there are no gaps by the time of the mutual evaluation. Preparations, in this regard, have already begun. And we remain confident that South Africa will be able to sustain the progress made.”
Experts welcome move
Independent economist Mandla Maleka said it’s welcome news that SA has been removed from grey listing by the FATF.
“There were 22 identified key risk factors that the FATF identified in 2023 that negatively affected the country.
“The greylist made it difficult for financial flows to reach the country, citing, amongst others, underdeveloped terrorist financial risk understanding and the need for an improved risk-based approach to combat financial crimes,” said Maleka.
He said the advantage was that the removal is news for the country and will limit the scrutiny associated with investors’ increased due diligence.
“This should be good for the country and all its major economic indicators. The news is positive for the ZAR and ultimately favourable for inflation. Its good for bond yields as investors use it for country risk assessment.
“It should be good for growth as well if we consider that a lower inflation trajectory is growth positive through stable and predictable prices. But overall, the country is tasked with maintaining the achievements through resourcing key institutions. These range from SARS to financial intelligence and security clusters,” said Maleka.
“Our budgetary process is one of the most transparent in the world and that should stand us in good stead. The news is ZAR positive, and bond yields are positive,” he said.
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