(3 Minutes Read)
South Africa is poised to reclaim its financial credibility, with a potential exit from the Financial Action Task Force (FATF)’s grey list on the horizon. After spending nearly two and a half years under increased monitoring, the country has “substantially completed” all required reforms, positioning itself for delisting as early as October 2025.
This would mark one of the shortest grey list stays on record. While many jurisdictions spend five to ten years implementing FATF-mandated reforms, South Africa appears on track to complete the process in just 30 months.
According to the FATF’s June update, all 22 outstanding action points have been addressed. The final hurdle is an on-site evaluation — a key step to verify the effectiveness of reforms — scheduled before the October plenary.
“The outcome of that visit will be decisive,” noted the Bureau for Economic Research. “If successful, delisting could be confirmed by October.” Preparations are already in full swing, with the National Treasury, SARS, and the South African Reserve Bank coordinating efforts to ensure a favourable outcome.
The FATF grey list, formally known as “Jurisdictions under Increased Monitoring,” flags countries with strategic deficiencies in countering money laundering and terrorist financing. Though less severe than blacklisting, grey listing carries real economic consequences — hindering international transactions, increasing compliance burdens, and undermining investor confidence.
“It doesn’t just affect banks,” said an economist from a local financial institution. “It impacts everything from small business funding to property deals and remittances. Even basic international payments face delays.”
Since being grey listed in February 2023, South Africa has tackled 67 recommendations. These included:
- Stricter oversight of non-financial sectors such as legal and real estate professionals
- Greater transparency in the ownership of trusts and companies
- Improved capacity to investigate and prosecute financial crimes
The Financial Intelligence Centre (FIC), SARS, and the National Prosecuting Authority (NPA) have intensified enforcement, with particular scrutiny on trusts and shell entities. Many see these moves as long overdue reforms, not just box-ticking exercises.
SARS Commissioner Edward Kieswetter emphasised the broader significance: “This isn’t only about FATF compliance — it’s about restoring public and international trust in South Africa’s institutions.”
If delisting proceeds, the benefits are expected to ripple across the economy:
- Lower compliance costs for businesses
- Increased investor confidence
- Faster cross-border transactions
- A reputational boost with global markets and credit agencies
“Being removed from the grey list would be a major win for Treasury,” said one official. “Not just for perception, but for positioning South Africa as a trustworthy emerging market.” However, delisting won’t mean the end of scrutiny. FATF and the Treasury have warned that reforms must be actively maintained to prevent future relapse.
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Still, for a country rebuilding after years of governance failures, exiting the greylist could mark a pivotal step forward. If successful, South Africa will join a small group — including Mauritius, Malta, and Iceland — that resolved FATF issues in under three years. Others, like Syria and Yemen, have remained grey-listed for over a decade. With the FATF plenary set for October, all eyes are now on South Africa’s final test — and the possibility of a long-awaited return to financial normalcy.
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