The National Treasury published a Media Statement on South Africa’s action plan against the February 2024 FATF Plenary meetings.
In February 2023, South Africa was greylisted by the Financial Action Task Force (FATF), upon its Plenary meetings, an action plan was adopted listing 22 action items linked to the strategic deficiencies identified in the Anti-Money Laundering and the Combating of the Financing of Terrorism (AML/CFT) regime. As a result, between January 2024 to January 2025, South Africa is required to address all 22 action items to exit the greylist.
In February 2024, 5 of the 22 items were addressed or largely addressed. According to the FATF, two further action items that were previously unaddressed have now been partly addressed, making that 14 of the 17 outstanding action items have now been partly addressed.
South Africa has a deadline to address the 4 outstanding action items in its Action Plan by May 2024. In September 2024, South Africa is required to address a further 8 action items and lastly, in January 2025 the final 5 items are due.
It is important to note that South Africa is on track to address all the outstanding action items however, addressing all 17 remaining actions by February 2025 remains a tough challenge as all relevant agencies and authorities must continue to demonstrate significant improvements. If South Africa is assessed and found to have addressed all 22 action items in February 2025, the FATF will schedule a further onside visit to confirm that assessment in April/May 2025.
Progress in addressing technical compliance deficiencies – related to the 40 FATF recommendations.
The process of addressing effectiveness and strategic deficiencies is distinct from the process of addressing technical compliance deficiencies related to the adequacy of the country’s AML/CFT laws and policy frameworks.
- In October 2023, the FATF Plenary formally re-rated 18 of South Africa’s 20 deficiencies, based on the progress made by the South African authorities in the two-year period following the 2021 mutual evaluation.
- 15 deficiencies were upgraded to a point where they are no longer deficient as 14 Recommendations are now fully or largely compliant.
- One Recommendation was deemed to be inapplicable to South Africa.
After the above re-ratings, South Africa is now deemed to be fully or largely compliant in 35 of the 40 FATF Recommendations. This includes 5 of the 6 core FATF Recommendations. South Africa will apply for further re-ratings of technical compliance deficiencies, for the consideration of the October 2024 FATF Plenary.