South Africa Moves Toward FATF Greylist Exit Following Plenary Determination

Posted 17 June 2025 Written by Acts Online
Category National Treasury

Brought to you by SA Legal Academy: The Financial Action Task Force (FATF) has determined that South Africa has substantially completed its action plan, triggering an on-site assessment process to verify the sustainability of reforms.

Following the FATF plenary held on 13 June 2025 in Strasbourg, France, the international body confirmed that South Africa warrants an on-site assessment to verify the implementation of reforms regarding anti-money laundering (AML) and curtailing terrorist financing (CTF). This determination follows the country’s placement on the FATF ‘grey list’ of jurisdictions under increased monitoring.

National Treasury has issued a statement confirming that the assessment aims to verify that the implementation of reforms has begun, is being sustained, and that the necessary political commitment remains in place for future compliance. The reforms are intended to strengthen the fight against crime and corruption and maintain the integrity of South Africa’s financial system.

The FATF on-site assessment will focus on the following key areas:

  • Verification that AML/CTF reforms have been implemented effectively;
  • Evidence that the implementation is being sustained across relevant institutions; and
  • Confirmation of political commitment to maintain the integrity of the regulatory framework.

The FATF on-site assessment is expected to take place before the organisation’s October 2025 plenary, which will serve as the next milestone for South Africa’s potential removal from the list of jurisdictions under increased monitoring.

What this means for you, your business, or your clients

  • For yourself: No direct individual filing obligations; however, compliance professionals must ensure that internal reporting for suspicious activities remains robust during this high-scrutiny verification period.
  • For your business: Accountable institutions should prepare for potential supervisory inspections as the FATF assessment will look for evidence that AML/CTF reforms are being applied consistently across the private sector.
  • For your clients: Clients engaged in international trade or cross-border investment may see a reduction in due diligence hurdles and lower transaction costs if South Africa is successfully removed from the grey list following the October 2025 plenary.

Originally published at https://legalacademy.co.za/news/read/fatf-greylist-exit-imminent

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