EU Removes South Africa from AML/CFT High-Risk List

Posted 13 January 2026 Written by Acts Online
Category National Treasury

Brought to you by SA Legal Academy: The European Union (EU) has officially removed South Africa from its list of high-risk third countries deemed to have strategic deficiencies in their Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) frameworks.

This decision, announced by National Treasury, follows South Africa’s removal from the Financial Action Task Force (FATF) grey list in October 2025. The EU’s action aligns with its policy of identifying jurisdictions that pose a threat to the proper functioning of the EU internal market due to systemic regulatory weaknesses. Britain had previously followed the FATF decision automatically.

The removal, which becomes effective on 29 January 2026, terminates the requirement for EU member states to apply enhanced customer due diligence (ECDD) measures to transactions involving South African entities. According to National Treasury, the previous high-risk status necessitated:

  • Increased scrutiny of business relationships and transactions;
  • Additional information requirements on the source of funds and wealth; and
  • Higher levels of management approval for business engagements.

The transition is expected to reduce friction in international financial flows, thereby facilitating smoother trade, payments, and investment between South Africa and the European Union.

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

  • For yourself: No direct individual compliance obligations; however, professional practitioners will benefit from reduced administrative complexity when facilitating cross-border transactions for themselves or their firms.
  • For your business: South African firms engaging with EU-based financial institutions will see a reduction in the ‘friction’ of transactions, as the mandatory application of enhanced customer due diligence by EU counterparts will cease from 29 January 2026.
  • For your clients: Clients involved in international trade or investment within the EU internal market will experience faster processing times for payments and fewer documentation requests related to the source of wealth and funds.

Originally published at https://legalacademy.co.za/news/read/money-laundering-terrorism-financing-eu-removes-south-africa-from-high-risk-list

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