National Treasury issued a media statement regarding South Africa’s formal removal from the Financial Action Task Force (FATF) greylist on 24 October 2025; this marks a pivotal development for the country’s financial system and its global reputation. The FATF’s decision, announced after its plenary in Paris, that it recognises the extensive reforms undertaken by the South African government and regulators to strengthen anti-money laundering (AML) and counter-financing of terrorism (CFT) frameworks.
This development brings relief for Accountable Institutions (AIs) as they have faced heightened scrutiny from international partners, increased compliance costs, and delays in cross-border transactions since South Africa’s greylisting in February 2023. Exiting the list indicates restored confidence in South Africa’s regulatory integrity whilst paving the way forward for smoother global financial interactions.
However, the National Treasury cautioned, this milestone does not mark the end of its reform efforts as it is “only the start of a broader process” by the FIC to ensure lasting institutional resilience.
The FATF requires ongoing demonstration of compliance through measurable outcomes such as successful investigations, prosecutions, and sanctions related to AML/CFT breaches. This AIs must maintain vigilance and embed sustainable compliance cultures across their operations.
Enhanced due diligence, continuous staff training, and effective transaction monitoring remain crucial. Regulators like the Financial Sector Conduct Authority (FSCA) and the Financial Intelligence Centre (FIC) are expected to continue with intensified supervision, ensuring that improvements achieved during the greylisting period are not reversed.
The upcoming FATF Mutual Evaluation (2026–2027) will test the durability of reforms. AIs that strengthen governance and invest in AML capabilities, tools or technologies will not only support national compliance but also enhance South Africa’s competitiveness in a now, more trusted, financial environment.
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