On 13 June 2025, the Financial Action Task Force (FATF) announced South Africa’s significant progress in addressing deficiencies that had previously led to its greylisting in February 2023. According to the media statement released by National Treasury, South Africa has now “substantially completed” all 22 action items contained in the FATF’s Action Plan. This development sets the stage for a potential delisting following an on-site visit by the FATF Africa Joint Group, scheduled ahead of the October 2025 Plenary.
The FATF’s acknowledgment follows widespread reforms implemented across South Africa’s anti-money laundering and counter-terrorism financing (AML/CFT) framework. This includes enhanced investigations and prosecutions of complex financial crimes, particularly in response to systemic weaknesses inherited from the era of state capture.
In its latest statement, FATF highlighted two critical reforms as particularly commendable: a sustained increase in complex money laundering and terror financing investigations and prosecutions, and the updating of the national Terror Financing Risk Assessment, informing the implementation of a comprehensive counter-terrorism strategy. These achievements marked the final hurdles in South Africa’s journey toward potential delisting.
The Action Plan annexed to the media statement confirms that each of the 22 items, spanning regulatory supervision, financial intelligence gathering, legal framework enhancements, and targeted financial sanctions, have been “largely addressed.”
Enhancing South Africa’s AML/CFT framework to fulfil the Action Plan is essential not only for exiting the FATF greylist, but also for reinforcing efforts to combat crime and corruption, and for safeguarding the integrity of the country’s financial system.
The upcoming on-site visit will assess whether key AML/CFT reforms have been effectively implemented and that the necessary political commitment remains in place to sustain progress. Preparations for the on-site visit have already commenced. If the outcome of the visit is favourable, the FATF is expected to remove South Africa from the greylist at its next Plenary in October 2025.
South Africa now joins countries like Nigeria, Mozambique, and Burkina Faso, who have also reached the on-site assessment stage. Meanwhile, Mali and Tanzania were fully delisted at the same FATF Plenary.
Accountable Institutions can expect continued heightened oversight from regulatory and supervisory bodies such as the Financial Intelligence Centre and Financial Sector Conduct Authority in the case of FSPs. Accountable institutions must ensure robust internal AML/CFT controls, updated training, and alignment with revised policies are effectively implemented.
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We offer a wide range of services to all Accountable Institutions including FICA Training for your employees, hands-on assistance with the implementation of FICA requirements in your business and support services when preparing for a FIC Inspection.
Contact your Masthead Compliance Officer or get in touch with us for more information on how Masthead can assist you to be compliant in terms of the FICA requirements.