The Financial Action Task Force has removed South Africa from its greylist, ending a two-year period of increased monitoring for anti-money laundering deficiencies. The decision, announced on October 24, 2025, follows the completion of 22 action items and highlights improvements in investigations and prosecutions. Experts praise the swift progress but stress the need for sustained enforcement to avoid future relisting.
The Financial Action Task Force (FATF), the global financial crime watchdog, delisted South Africa from its greylist during its plenary meeting in Paris from October 22 to 24, 2025. This marks the end of South Africa's placement on the list in February 2023, when it was cited for weak enforcement of anti-money laundering and counter-terrorist financing (AML/CFT) standards despite robust frameworks on paper.
FATF President Elisa de Anda Madrazo announced the removal alongside Burkina Faso, Mozambique, and Nigeria, noting that 'a record of four countries have been removed from the greylist, including South Africa, which has sharpened the tools to detect money laundering and terrorist financing.' South Africa completed all 22 action items by June 2025, including increased investigations and prosecutions of money laundering and terrorist financing, enhanced seizure of crime proceeds, and improved beneficial ownership registries. An on-site FATF visit in July confirmed substantial compliance.
The National Treasury described the exit as 'an important milestone and a demonstration of [South Africa’s] commitment to rebuilding the rule of law,' but emphasized it is 'only the start of a broader process' to strengthen institutions and ensure sustainable enforcement. Leila Fourie, CEO of the Johannesburg Stock Exchange and chair of Operation Phumelela, called it a 'watershed moment,' highlighting reforms that addressed state capture legacies and involved stakeholders like the Hawks, National Prosecuting Authority, and private sector institutions.
Economists like Dr. Elna Moolman of Standard Bank noted the delisting's potential to boost investor confidence and ease international transactions, reducing costs from enhanced scrutiny during the greylisting period. Vincent Gaudel of LexisNexis Risk Solutions pointed to legislative amendments in six major laws, including the Financial Intelligence Centre Act, as key to upgraded FATF ratings.
However, experts warn against complacency. Hawken McEwan of nCino KYC Africa stressed that 'financial crime is like a game of cat and mouse,' requiring ongoing public-private collaboration. Business for South Africa (B4SA) hailed the achievement as reflecting extensive efforts by regulators and law enforcement. National Treasury advisor Ismail Momoniat urged stopping all corruption and financial system abuses. The next FATF mutual evaluation begins in early 2026, underscoring the need for continued measurable outcomes to stay off the list.