South Africa
South Africa has been removed from the Financial Action Task Force (FATF) greylist, marking the end of a two-year period of intense scrutiny since February 2023. The Cabinet, meeting in Cape Town this week, welcomed the decision, praising the coordinated efforts that led to this achievement. The delisting, announced by FATF on 24 October 2025, follows the country’s successful completion of all 22 action items by June 2025 and a favourable on-site assessment in July. This move is expected to boost investor confidence, lower borrowing costs, and strengthen the nation’s financial systems, paving the way for more jobs and economic growth. As one of four African countries delisted alongside Nigeria, Mozambique, and Burkina Faso, South Africa’s exit underscores its commitment to combating money laundering and terrorism financing.
Cabinet Commends Inter-Departmental Team’s Efforts
Cabinet expressed high praise for the inter-departmental team, including the National Treasury, State Security Agency, National Prosecuting Authority (NPA), and Directorate for Priority Crime Investigation (Hawks), for their work in strengthening anti-money laundering (AML) and counter-terrorism financing (CFT) measures. “Cabinet commended the sterling and coordinated work of the inter-departmental team… for the measures put in place to counter and prosecute terrorism and terror-financing,” the statement read.
The South African Revenue Service (SARS) also hailed the delisting as a testament to collaborative reforms, noting it will enhance the country’s standing in global finance. National Treasury echoed this, stating the exit from the greylist after 33 months demonstrates South Africa’s dedication to the rule of law and institutional improvements.
Background on the Greylisting and FATF’s Role
South Africa was placed on the FATF greylist in February 2023 due to weaknesses in its AML/CFT framework, leading to heightened monitoring and requirements to address 22 specific action items. The FATF, an intergovernmental body established in 1989, sets international standards to combat money laundering, terrorist financing, and other threats to financial integrity. It conducts peer reviews and can greylist countries needing improvements.
The country’s reforms included better enforcement, governance, and investigations into financial crimes. The July on-site visit confirmed these changes were effective and sustainable, paving the way for delisting.
Economic Benefits and Boost to Investor Confidence
Cabinet highlighted the positive impacts of the delisting, saying it will improve business confidence, fortify financial systems, cut borrowing costs, attract more investments, and create jobs. “The de-listing is expected to improve business confidence, strengthen financial systems, reduce the cost of borrowing, contribute to the integrity of our economy, and increase appetite for more investments and creation of jobs,” the statement noted.
Experts agree, noting that greylisting had led to higher compliance costs for banks and slower international transactions. Removal from the list eases these burdens, making South Africa more appealing to global investors. It also reinforces the nation’s role as a compliant player in international finance, reducing risks of illicit cross-border flows.
Future Commitments and Ongoing Monitoring
While celebrating the milestone, Cabinet stressed the need for continued vigilance. FATF requires delisted countries to show ongoing commitment through successful investigations, prosecutions, and sanctions related to AML/CFT. These will be key in the next mutual evaluation, set to start in early 2026 and wrap up by October 2027.
South Africa plans to build on its reforms, focusing on measurable outcomes to maintain its improved status. This includes bolstering institutions like the Hawks and NPA to tackle financial crimes effectively.
Global Context and Reactions
The delisting aligns with FATF’s October 2025 plenary, where jurisdictions under increased monitoring were reviewed. International partners have welcomed the news, seeing it as a win for global financial integrity. Locally, business groups like Business Unity South Africa (BUSA) and economists predict a lift in economic sentiment, potentially aiding recovery from recent slowdowns.
As South Africa moves forward, this achievement stands as a testament to collaborative reforms, offering hope for stronger growth and stability in Africa’s largest economy.
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