The Financial Action Task Force (FATF) has confirmed that South Africa has substantially completed all 22 recommended action items outlined in the Action Plan adopted when the country was placed on the organisation’s grey list in February 2023.
South Africa was placed on the FATF grey list due to deficiencies in its anti-money laundering and counter-terrorism financing (AML/CFT) regime.
During its plenary session held in Strasbourg, France, the FATF made the initial determination that South Africa has substantially completed its action plan and warrants an on-site assessment. The on-site assessment will be to verify that the implementation of AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future.
According to the National Treasury, the completion of the Action Plan paves the way for the final step before the FATF can delist South Africa, which is an on-site visit to South Africa by the FATF Africa Joint Group (JG).
A statement by FATF on (Jurisdictions under Increased Monitoring - 13 June 2025) noted that South Africa has undertaken a range of key reforms, including demonstrating a sustained increase in investigations and prosecutions of serious and complex money laundering and the full range of [terror financing] TF activities in line with its risk profile; and updating its TF Risk Assessment to inform the implementation of a comprehensive national counter financing of terrorism strategy.
The National Treasury emphasised that the improvements to South Africa’s AML/CFT regime are particularly important for South Africa, given the legacy of state capture, one element of which was that law enforcement and prosecuting institutions were deliberately weakened.
“Improvements in these domains are critical not just for getting off the greylist, but for strengthening the fight against crime and corruption, and for contributing to the integrity of the South African financial system. Exiting the FATF greylist is a significant step forward as South Africa continues to improve and strengthen its supervisory and criminal justice systems,” National Treasury said on Friday.
The on-site visit will take place before the next FATF Plenary, and, if the outcome of the visit is positive, the FATF will delist South Africa from the greylist at its next Plenary in October 2025. Preparations for the on-site visit have commenced.
During this visit, the JG will confirm the country’s ongoing commitment in the implementation of the country’s fight against money laundering, terror financing and other financial crimes.
“National Treasury commends the efforts and commitment of the law enforcement entities, especially the Directorate for Priority Crime Investigation (DPCI) of the South African Police Service, the State Security Agency, and the National Prosecuting Authority (NPA), for the sustained increase in investigations and prosecutions of serious and complex money laundering and terror financing activities.
“This made it possible for South Africa to secure the upgrades of the last two remaining action items, often considered to be the most difficult, in the current reporting cycle,” National Treasury said.
South Africa also commended Mali and Tanzania, who were delisted from greylisting by the FATF Plenary.
“We also congratulate Nigeria, Mozambique and Burkina Faso, who like South Africa, were deemed to have substantially completed their action plans, and for whom on-site assessments were also approved.
“National Treasury pays tribute to the late Advocate Rodney de Kock of the NPA, who played a leading role in preparing the groundwork for South Africa to address the action items, but sadly passed away in January 2025.”
The South African Reserve Bank (SARC) has welcomed the confirmation by the Financial Action Task Force’s (FATF) that South Africa has completed all 22 of its action items.
“This is a significant step forward – but not the time for complacency,” the SARB said on Saturday.-SAnews.gov.za
