South Africa Removed from Financial Action Task Force Grey List
South Africa has been officially removed from the Financial Action Task Force’s (FATF) grey list, marking a major milestone in the country’s efforts to strengthen its financial integrity and restore global investor confidence. The decision was announced following the FATF plenary meeting held in Paris.
The FATF grey list includes countries under increased monitoring due to deficiencies in combating money laundering, terrorist financing and other financial crimes. South Africa was added to this list in February 2023 after the global watchdog identified weaknesses in its anti-money laundering (AML) and counter-terrorist financing (CFT) framework. The country’s placement on the list was viewed as a reputational blow that made it harder for local banks and companies to access international finance and increased compliance costs.
Since then, South Africa has implemented a wide ranging reform program aimed at addressing the FATF’s 22 recommended action points. The government, through the National Treasury and other regulatory agencies, strengthened laws and enforcement mechanisms to improve financial oversight. Authorities increased investigations and prosecutions related to money laundering, enhanced beneficial ownership registries, tightened supervision of non financial sectors such as law and accounting firms and improved coordination among law enforcement agencies.
In July 2025, a FATF assessment team conducted an on site review and confirmed that South Africa had substantially completed its action plan and achieved significant progress. This led to the country’s removal from the grey list in October. Finance Minister Enoch Godongwana welcomed the decision, calling it “a testament to South Africa’s commitment to international financial integrity.” He said the government would continue working to strengthen the country’s institutions and prevent any backsliding.
Economic analysts say the delisting is likely to improve South Africa’s attractiveness to investors, reduce financing costs and restore confidence in its banking system. Studies show that countries removed from the FATF grey list typically experience a rise in foreign capital inflows and improved credit ratings. Experts note that the real challenge lies in maintaining effective prosecutions, increasing asset recovery from corruption-related crimes and ensuring that reforms remain in place regardless of political changes. The FATF will continue to monitor South Africa’s progress ahead of its next mutual evaluation scheduled for 2026–27.