SOUTH AFRICA SET TO EXIT FATF GREYLIST AS TREASURY SIGNALS CONFIDENCE 

SOUTH AFRICA SET TO EXIT FATF GREYLIST AS TREASURY SIGNALS CONFIDENCE 

South Africa is on the brink of a significant financial and regulatory milestone. Following more than two years of reform, the Financial Action Task Force (FATF) has acknowledged that South Africa has substantially completed all required action items to exit the greylist—a development that could restore investor confidence and enhance the country’s global financial standing. 

The FATF, an international watchdog against money laundering and terrorist financing, placed South Africa on its greylist in February 2023. The decision followed concerns over weaknesses in the country’s ability to detect, investigate, and prosecute financial crimes effectively. 

According to a statement issued by the National Treasury, FATF’s June 2025 plenary meeting confirmed that all 22 action items identified during the mutual evaluation process have been “largely addressed”. These reforms span improved legislative frameworks, increased investigative capacity, and stronger institutional coordination across law enforcement, the financial sector, and intelligence agencies. 

A Turning Point for South Africa’s Financial Reputation 

Treasury noted that an on-site evaluation by FATF’s Africa Joint Group will be scheduled before October 2025. If successful, this would lead to South Africa’s formal removal from the greylist during FATF’s next plenary session. 

“This is a clear signal that South Africa has made serious strides in fighting financial crime and aligning with international standards,” Treasury said. “We are confident that the final steps will confirm our long-term commitment to financial integrity and transparency.” 

The South African Reserve Bank (SARB), Financial Intelligence Centre (FIC), National Prosecuting Authority (NPA), and Financial Sector Conduct Authority (FSCA) have all played key roles in meeting FATF’s expectations. This includes securing an increase in complex money laundering prosecutions, bolstering supervision of non-financial institutions, and implementing stricter controls on terrorism financing. 

Economic and Investment Implications 

While greylisting did not trigger capital outflows, it increased the compliance burden on South African financial institutions and raised the cost of doing business with international counterparts. Should South Africa be removed from the greylist, immediate benefits could include: 

• Easier access to global financial systems and partnerships 
• Reduced due diligence requirements for international investors 
• Increased foreign direct investment confidence 
• Improved sovereign credit sentiment and lower risk premiums 

South Africa’s financial sector has proven resilient under the greylisting pressures, but stakeholders widely agree that delisting will bring renewed momentum to investment inflows and economic growth. 

Sustaining Reform Post-Greylisting 

Despite nearing the finish line, regulators have emphasised that ongoing vigilance is essential. FATF’s framework doesn’t just assess whether reforms exist—it monitors whether these reforms are effectively implemented and sustained over time. 

“This isn’t a box-ticking exercise,” noted the FSCA in a recent circular. “It’s about strengthening the core of our financial system to protect against abuse. We’ve made the changes—now we must entrench the culture.” 

Treasury echoed this sentiment, urging all public and private sector players to uphold the improvements, especially as FATF continues monitoring post-exit developments. 

South Africa’s likely exit from the FATF greylist represents more than a regulatory victory—it’s a vote of confidence in the country’s financial resilience and institutional integrity. As the on-site visit approaches, the nation stands ready to rejoin the ranks of fully FATF-compliant countries, strengthening its position as a credible, compliant, and investable market on the global stage. 

Sources: 

• National Treasury Media Release – June 2025 
• FATF Public Statement – June 2025 
• Financial Sector Conduct Authority (FSCA) Circulars 
• Sunday World, Moonstone, DefenceWeb (June 2025 reports)