South Africa well on its way to get off FATF grey list

South Africa is well on its way to getting off the FATF grey list after it made quite a lot of headway to meet all the requirements to be removed.

This is important because remaining on the grey list will lead to a stagnating economy, the degradation of the rand and greater difficulty borrowing money.

The Financial Action Task Force (FATF) announced yesterday that South Africa has substantially completed all 22 action items in the action plan adopted.

The FATF is an intergovernmental body established in 1989 by the ministers of its member jurisdictions to protect financial systems and the broader economy from threats of money laundering and the financing of terrorism and proliferation, thereby strengthening financial sector integrity and contributing to safety and security.

When the FATF places a jurisdiction under increased monitoring, it means the country has committed to resolving the identified strategic deficiencies within agreed-upon timeframes and is subject to increased monitoring. This list is often externally referred to as the “grey list”.

The decision, taken at the FATF plenary in Strasbourg, France, notes that South Africa’s progress warrants an on-site assessment to verify that critical reforms, including anti-money laundering and the combating of the financing of terrorism reforms, have been implemented and that the necessary political commitment remains in place to sustain progress.

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Treasury says it is good news that DSA could get off FATF grey list soon

The National Treasury said in a statement that it commended the efforts and commitment of the law enforcement entities, especially the Directorate for Priority Crime Investigation (DPCI) of the South African Police Service, the State Security Agency and the National Prosecuting Authority (NPA) for the sustained increase in investigations and prosecutions of serious and complex money laundering and terror financing activities.

“This made it possible for South Africa to secure the upgrades of the last two remaining action items, often considered to be the most difficult, in the current reporting cycle.:

The Treasury says this was recognised by the FATF, which says in a statement that South Africa made these reforms:

• Demonstrating a sustained increase in investigations and prosecutions of serious and complex money laundering and the full range of terror financing activities in line with its risk profile; and
• Updating its risk assessment for terrorism financing to inform the implementation of a comprehensive national counter financing of terrorism strategy.

The Treasury says the improvements to South Africa’s anti-money laundering and combating of the financing of terrorism regime are particularly important for South Africa, given the legacy of state capture, where one element was that law enforcement and prosecuting institutions were deliberately weakened.

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Improvements critical for SA to get off FATF grey list

“Improvements in these domains are critical not just for getting off the grey list, but for strengthening the fight against crime and corruption and contributing to the integrity of the South African financial system.

“Exiting the FATF grey list is a significant step forward as South Africa continues to improve and strengthen its supervisory and criminal justice systems.”

The Treasury points out that the completion of the action plan paves the way for the final step before the FATF can delist South Africa, which is an on-site visit to South Africa by the FATF Africa Joint Group.

During this visit, the joint group will confirm the country’s ongoing commitment to implementing its fight against money laundering, terror financing and other financial crimes.

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Decision made at FATF plenary that SA completed plan to get off grey list

The FATF says in a statement it made the initial determination at its plenary in June 2025 that South Africa has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of anti-money laundering and combating of funding of terrorism reforms has begun and is being sustained, while the necessary political commitment remains in place to sustain implementation in the future.

The on-site visit will take place before the next FATF plenary. If the outcome is positive, the FATF will delist South Africa from the grey list at its next plenary in October 2025. Preparations for the on-site visit have started.

The Treasury says South Africa also commends Mali and Tanzania for their delisting at the FATF plenary.

“We also congratulate Nigeria, Mozambique and Burkina Faso, who, like South Africa, were deemed to have substantially completed their action plans, with their on-site assessments also approved.”

In addition, the Treasury paid tribute to the late advocate Rodney de Kock of the NPA, who played a leading role in preparing the groundwork for South Africa to address the FATF action items. De Kock passed away in January 2025.