South Africa Exits FATF Grey List Following AML/CFT Improvements

Posted 27 October 2025 Written by Acts Online
Category National Treasury

Brought to you by SA Legal Academy: South Africa has been removed from the Financial Action Task Force (FATF) ‘grey list’ following a report on jurisdictions under increased monitoring issued on 24 October 2025.

In terms of the Financial Action Task Force (FATF) report, South Africa has successfully addressed the strategic deficiencies identified in its February 2023 action plan. This plan was implemented to strengthen the effectiveness of the country’s anti-money laundering and countering the financing of terrorism (AML/CFT) regime, following the 2021 mutual evaluation which led to the initial listing.

National Treasury has noted that while the removal from the list of jurisdictions under increased monitoring is a significant institutional achievement, the state must continue to work with the FATF and the Eastern & Southern Africa Anti-Money Laundering Group (ESAAMLG) to sustain improvements. The regulatory focus now shifts toward demonstrating ‘measurable outcomes’ in the enforcement of AML/CFT protocols.

Future Compliance and Evaluation Timeline

The exit from the grey list does not conclude the monitoring process. National Treasury has outlined a timeline for continued assessment and enforcement:

  • Ongoing Monitoring: South Africa is required to demonstrate continued commitment through successful AML/CFT-related investigations, prosecutions, and the application of effective sanctions.
  • Next Mutual Evaluation: The next comprehensive FATF mutual evaluation is scheduled to commence in the first half of 2026.
  • Evaluation Conclusion: The results of the 2026 evaluation are expected to be finalised and published in October 2027.

The strengthening of law enforcement and regulatory institutions remains a priority to ensure that the deficiencies identified during the ‘state capture’ era do not recur. This includes the continued application of the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, No. 22 of 2022 and related subordinate legislation.

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

  • For yourself: No direct individual obligations; however, professionals must maintain rigorous adherence to Financial Intelligence Centre Act, No. 38 of 2001 (FICA) reporting standards as regulatory scrutiny on ‘measurable outcomes’ increases.
  • For your business: Accountable institutions should review and update their Risk Management and Compliance Programmes (RMCPs) to ensure they can demonstrate effective implementation of AML/CFT controls ahead of the 2026 mutual evaluation.
  • For your clients: Clients may experience a gradual reduction in the enhanced due diligence requirements previously imposed by international correspondent banks and foreign financial institutions due to South Africa’s improved jurisdictional risk rating.

Originally published at https://legalacademy.co.za/news/read/grey-list-exit-treasury-on-road-ahead

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