South Africa has officially been removed from the Financial Action Task Force’s (FATF) grey-list. The decision came on Friday in Paris, following 33 months of intense scrutiny. The country was placed on the list in February 2023 due to serious weaknesses in its financial crime framework.
The FATF is a global watchdog monitoring anti-money laundering and counter-terrorism financing (AML/CFT). Being on its grey-list signals increased risk to the global financial system. This often leads to higher costs for international business. It can also deter foreign investment.
To be removed, South Africa had to address 22 action items. These were aimed at strengthening its financial regulations. The country made significant progress. This led to the FATF’s decision to delist it. The move is expected to boost investor and business confidence.
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Sustaining momentum is now crucial
Experts warn that this is not the end of the road and that South Africa cannot afford to become complacent. The country must continue to demonstrate its ability to fight financial crime.
This includes securing more successful prosecutions. It also means confiscating the proceeds of illegal activities. The FATF will conduct another on-site visit in April 2027 when assessors will require detailed evidence of continued compliance.
Image: FATF flag. [Credit: Reuters]
