SARS
South Africa has marked a pivotal achievement in its fight against financial crime, with the Financial Action Task Force (FATF) officially removing the country from its grey list of jurisdictions under increased monitoring. SARS Commissioner Edward Kieswetter welcomed the decision on Friday, 25 October 2025, describing it as a “significant moment” that reflects the collaborative efforts across government to restore the nation’s financial system. This delisting, decided at the FATF Plenary in Paris from 22 to 24 October, signals renewed international confidence but also serves as a reminder that the battle against corruption and illicit flows is far from over.
The grey listing in February 2023 stemmed from systemic vulnerabilities exposed during the state capture era, which undermined institutions like SARS. Now, with substantial reforms in place, South Africa joins Burkina Faso, Mozambique, and Nigeria in exiting the list, highlighting broader African progress. As the economy rebounds, this could ease cross-border transactions, attract investment, and bolster efforts to combat money laundering and terror financing. Kieswetter’s response underscores a commitment to ongoing vigilance, ensuring the country avoids regression ahead of the next FATF review in late 2026.
FATF’s Decision: A Vote of Confidence After Intensive Reforms
The FATF, an intergovernmental body established to combat money laundering, terrorist financing, and threats to global financial integrity, conducts mutual evaluations to assess compliance with its recommendations. South Africa’s 2023 grey listing followed findings of weaknesses in areas like beneficial ownership transparency and financial intelligence sharing.
Kieswetter praised the “whole of government approach” that addressed 22 action items set by the FATF. “While the FATF’s initial grey-listing in February 2023 was a consequence of systemic weaknesses aggravated during the era of state capture, SARS is acutely aware that it, along with other key institutions, was impacted and must continue to play a crucial role in preventing any future regression,” he said.
The delisting affirms that South Africa has made “significant progress,” as noted in FATF reports from June 2025, where the country was commended for largely or fully addressing all items. This aligns with global efforts, with the FATF also removing other nations while adding new ones like Kenya to the list.
SARS’s Key Contributions: Strengthening Anti-Crime Measures
SARS played a central role in the reforms, partnering with law enforcement to enhance financial intelligence and tackle complex schemes. Key initiatives include:
- Introducing beneficial ownership reporting for legal persons and trusts, collaborating with the Companies and Intellectual Property Commission (CIPC) and Master of the High Court (MOHC) for better access to accurate data.
- Amending the Tax Administration Act in 2023 to enable information exchange with CIPC, MOHC, and the Department of Social Development (DSD), bolstering the national framework.
- Piloting a digital traveller declaration system for cash and bearer negotiable instruments at borders, set to become mandatory by year’s end, with data shared with the Financial Intelligence Centre (FIC).
- Providing training to officials and law enforcement on money laundering, beneficial ownership, and mutual legal assistance.
These steps have improved detection and recovery in tax and customs crimes, contributing to a more robust system.
Economic Boost: Reduced Risks and Enhanced Attractiveness
The grey listing imposed extra compliance burdens, increasing costs for banks and businesses in international dealings. Its removal is expected to streamline processes, lower transaction fees, and make South Africa more appealing for foreign direct investment (FDI). Kieswetter noted, “This delisting is a vote of confidence in South Africa’s progress, but it is not an end to our vigilance.”
With FDI inflows rising 20% in 2024 to R150 billion, per UNCTAD data, this could accelerate growth in sectors like mining, renewables, and manufacturing. The rand strengthened 0.5% post-announcement, reflecting market optimism.
No Time for Complacency: Ongoing Reforms and Future Reviews
Kieswetter warned that delisting is “not a finish line but a milestone.” SARS plans to embed improvements permanently, focusing on: - Making compliance easy for taxpayers while enforcing laws decisively.
- Collaborating domestically and internationally to combat the illicit economy.
- Using advanced data and intelligence to counter financial flows.
With the next FATF mutual evaluation in late 2026, Kieswetter committed to relentless work. “By doing so, we will not only maintain our standing with FATF but, more importantly, continue to build public trust and confidence in our financial system, and create a stronger, more prosperous South Africa for all,” he said.
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