South Africa has officially exited the Financial Action Task Force (FATF) greylist after successfully implementing key reforms to combat money laundering and the financing of terrorism.
The decision to delist South Africa was taken at the conclusion of meetings of the FATF Plenary held on October 22-24 in Paris, France.
After South Africa was listed on the FATF greylist in February 2023, the government focused on addressing the deficiencies reflected in the 22 action items in the action plan agreed between South Africa and the FATF.
The FATF is an intergovernmental organisation that sets global standards for anti-money laundering and counter-terrorism financing, and promotes their effective implementation. It conducts mutual evaluations of member countries to assess their compliance with the FATF recommendations.
“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, when the assessors came to the country to confirm the sustainability of the reforms that had been reported to them,” National Treasury said on Friday.
This concluded with a meeting with Deputy Minister of Finance, David Masondo, and Deputy Minister of Justice and Constitutional Development, Andries Nel, who assured the FATF of the government’s commitment to improving the country’s Anti-Money Laundering and the Combating the Financing of Terrorism (AML/CFT) system.
“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, it is only the start of a broader process to continue to strengthen key institutions, improve enforcement and governance processes, and ensure that such improvements are sustainable and that our systems become increasingly effective in combating money laundering and terrorism 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,” National Treasury said.
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 begin 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,” National Treasury said.
“Preparations in this regard have already begun and we remain confident that South Africa will be able to sustain the progress made.”
The department congratulated Nigeria, Mozambique and Burkina Faso, which were also delisted from the FATF greylist this week. – SAnews.gov.za
