South Africa Celebrates Removal from FATF Greylist After Major Reforms

South Africa has achieved a major financial and governance milestone, with the Financial Action Task Force (FATF) officially removing the country from its greylist, marking the end of a two-year period of intensified global monitoring. The announcement follows South Africa's successful implementation of all 22 recommended reforms to strengthen its anti-money laundering (AML) and counter-terrorism financing (CTF) systems — a process hailed by Cabinet as a triumph of institutional coordination and political will.

A Turning Point for South Africa's Financial Reputation

Cabinet, which met in Cape Town this week, formally welcomed the FATF decision, describing it as a "restoration of confidence" in South Africa's financial and governance systems.

"The successful completion of the FATF Action Plan demonstrates South Africa's unwavering commitment to the rule of law, good governance, and the integrity of our financial system," Cabinet said in an official statement. "This milestone confirms that our institutions are strong, resilient, and aligned with international best practice."

The FATF's decision follows an on-site assessment conducted in July 2025, which verified that the reforms implemented across multiple agencies were effective, sustainable, and fully compliant with FATF's global standards.

The Path to Reform

South Africa was placed on the FATF greylist in February 2023, after deficiencies were identified in the country's financial oversight and enforcement frameworks. Over the past two years, government agencies have worked intensively to meet the FATF's 22 action items, which included improving financial intelligence sharing, prosecuting complex financial crimes, and enhancing the capacity of law enforcement to track and disrupt illicit financial flows.

A coordinated effort by the National Treasury, State Security Agency (SSA), National Prosecuting Authority (NPA), and the Directorate for Priority Crime Investigation (Hawks) was instrumental in achieving compliance ahead of schedule.

"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 said.

Economic and Financial Impact

The removal from the FATF greylist is expected to have significant positive implications for South Africa's economy and international credibility. According to Cabinet, the decision will:

• Boost investor confidence and enhance South Africa's reputation as a reliable jurisdiction for global trade and investment.

• Reduce the cost of borrowing for government and private entities by improving credit ratings and lowering perceived financial risk.

• Strengthen the financial system's integrity, particularly in the banking and capital markets sectors.

• Encourage new foreign direct investment (FDI) and job creation through increased economic participation.

"This development will ease cross-border financial transactions, restore trust in our regulatory environment, and attract investment that contributes to sustainable growth and employment," Cabinet noted.

Global Standards and Ongoing Commitments

The FATF, established in 1989, is an intergovernmental watchdog tasked with setting international standards to combat money laundering, terrorist financing, and other threats to global financial stability. It periodically conducts mutual evaluations of member countries to assess compliance and the effectiveness of domestic regulatory systems.

Countries that exit the greylist are required to maintain measurable progress and demonstrate continued commitment through verifiable outcomes such as successful investigations, prosecutions, and sanctions in AML/CFT cases.

South Africa's next FATF Mutual Evaluation is scheduled to begin in early 2026 and conclude in October 2027, during which the country will need to show ongoing enforcement results and consistent application of reforms.

A Collective Effort Across Institutions

Experts have described South Africa's swift and comprehensive response as an example of whole-of-government cooperation. Since 2023, the National Treasury has led legislative reforms, including amendments to the Financial Intelligence Centre Act (FICA) and Companies Act, to strengthen corporate transparency and close loopholes that enabled financial crimes.

The NPA and Hawks have intensified investigations into corruption and money laundering, while the Financial Intelligence Centre (FIC) has expanded its data analytics and inter-agency collaboration to improve early detection of illicit transactions.

"This coordinated response has not only restored international confidence but also enhanced the domestic capacity to combat organised financial crime," said one Treasury official.

Rebuilding Credibility and Governance

The greylisting had placed South Africa under enhanced monitoring by international banks and financial institutions, increasing transaction costs and scrutiny on cross-border transfers. Its removal marks a renewed era of credibility, particularly for local banks and companies operating globally.

Economic analysts predict that the move could increase capital inflows by billions of rands over the next two years, as investor perceptions of regulatory risk decline.

Looking Ahead

While the de-listing represents a major step forward, Cabinet emphasised that the journey does not end here. Continuous vigilance, institutional integrity, and enforcement will be critical to prevent regression.

"This achievement is a testament to South Africa's capability to respond decisively to international obligations," Cabinet said. "Our focus now is to consolidate these gains, sustain compliance, and continue strengthening our financial governance systems."

As South Africa prepares for the 2026–2027 FATF review cycle, the government has pledged to maintain the momentum of reform, ensuring that transparency, accountability, and good governance remain the cornerstones of the national financial architecture.