From Grey To Green: South Africa Comes Off The Greylist
South Africa’s placement on the Financial Action Task Force (FATF) greylist in February 2023 reflected concerns around the country’s anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks. At that time, FATF and South Africa agreed on an action plan containing 22 specific items aimed at addressing strategic deficiencies in the AML/CFT regime. While South Africa had strong laws and institutions in place, FATF noted gaps in areas such as beneficial ownership transparency, practical implementation of risk-based supervision, effective inter-agency coordination, and consistent investigation and prosecution of complex financial crimes.
What Changed During the Reform Period
Over the following two years, South Africa undertook a concerted reform programme led by National Treasury, law enforcement bodies, financial and non-financial supervisors, and other stakeholders. By February 2025, FATF acknowledged that 20 out of the 22 action items were addressed or largely addressed, with the remaining two scheduled for resolution in the next reporting cycle. The reforms included strengthening legislation, improving beneficial ownership reporting, increasing risk-based supervision, and enhancing investigative and enforcement capacity. The government was able to demonstrate results, including more effective detection, investigations, and enforcement actions.
Why South Africa Has Been Removed From the Greylist
In June 2025, FATF made an initial determination that South Africa had substantially completed its action plan and warranted an on-site assessment to confirm that reforms were implemented and sustainable. In July 2025, FATF conducted a two-day on-site visit, meeting with government officials to assess political commitment and the durability of reforms. On 24 October 2025, the South African Revenue Service (SARS) confirmed that FATF had removed South Africa from the greylist. While this delisting represents a major achievement, it does not signal the end of risk — authorities and organisations must continue to maintain momentum and sustain reforms to prevent regression.
What This Means Going Forward
Although delisting is an important milestone for market confidence, authorities and organisations in South Africa must continue to maintain robust compliance practices. FATF standards emphasise ongoing effectiveness, meaning regulated entities should continue embedding strong governance, enhancing internal controls, maintaining transparent ownership structures, and applying risk-based approaches. The reforms introduced during the greylisting period have raised expectations, making compliance not only a regulatory requirement but also a strategic imperative.
South Africa’s greylisting journey offers a clear lesson: frameworks and laws matter, but outcomes matter more. The country’s coordinated response demonstrates what is possible when regulators, government institutions, and industry work collectively to strengthen the integrity of the financial system. For authorities and organisations seeking guidance on post-greylist expectations or aiming to elevate their compliance maturity, professional support is available to navigate this evolving landscape.