SA nears Financial Action Task Force greylist exit, on-site visit next step

The Citizen

9 hours ago

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 greylist in February 2023.
South Africa was greylisted 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 an initial determination that South Africa had substantially completed its Action Plan and warrants an on-site assessment. This visit will verify that the implementation of AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place.
According to the National Treasury, the completion of the Action Plan paves the way for the final step before FATF can delist South Africa — an on-site visit by the FATF Africa Joint Group (JG).
A statement by FATF on Jurisdictions under Increased Monitoring (June 13, 2025) noted that South Africa has undertaken key reforms. These include a sustained increase in investigations and prosecutions of serious and complex money laundering, and the full range of terror financing activities in line with its risk profile, as well as updating its terror financing risk assessment to inform the implementation of a comprehensive national counter-financing of terrorism strategy.
The National Treasury emphasised that these improvements to South Africa's AML/CFT regime are particularly important given the legacy of state capture, one element of which was the deliberate weakening of law enforcement and prosecuting institutions.
'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 is scheduled before the next FATF plenary. If the outcome is positive, South Africa will be removed from the greylist at the October plenary. Preparations for the visit are already underway.
During the visit, the JG will confirm the country's ongoing commitment to combating 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 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 who 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.'
The South African Reserve Bank (SARB) has welcomed FATF's confirmation that South Africa has completed all 22 action items.
'This is a significant step forward – but not the time for complacency,' the SARB said yesterday. – SAnews.gov.za
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