FATF Removes South Africa from Greylist

Posted 27 October 2025 Written by Acts Online
Category FICA

Brought to you by SA Accounting Academy: The Financial Action Task Force (FATF) has announced the removal of South Africa from its ‘grey list’ following the conclusion of its plenary session held from 20 to 24 October 2025.

Following the conclusion of the Financial Action Task Force (FATF) plenary, the Financial Intelligence Centre (FIC) confirmed that South Africa is no longer a jurisdiction under increased monitoring. This decision comes 32 months after the country was originally placed on the list in February 2023. The removal follows a period of concerted legislative and regulatory reform aimed at addressing deficiencies identified in the country’s 2019 mutual evaluation.

The remediation process involved significant updates to the Financial Intelligence Centre Act, No. 38 of 2001 and the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, No. 22 of 2022. These reforms focused on enhancing the powers of the FIC, improving the transparency of beneficial ownership, and strengthening the enforcement capabilities of supervisory bodies.

While the exit from the grey list marks a significant regulatory milestone, the FIC has indicated that the focus will now shift toward the fifth round of mutual evaluations. This next phase of international assessment is scheduled to take place between 2026 and 2027, requiring sustained compliance with global standards on anti-money laundering (AML) and combating the financing of terrorism (CFT).

Click here to download the FIC Media Release: South Africa exits the grey list.

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

  • For yourself: No direct change to individual reporting obligations; however, you must maintain rigorous standards for identifying and reporting suspicious transactions as required under FICA to ensure the country maintains its standing.
  • For your business: Firms may experience a reduction in the administrative burden and costs associated with enhanced due diligence previously required by international correspondent banks and global financial institutions.
  • For your clients: Entities engaged in cross-border trade or seeking foreign direct investment will likely benefit from improved ease of doing business and reduced friction in international capital markets.

Originally published at https://accountingacademy.co.za/news/read/fic-sa-finally-removed-from-greylist

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