The South African National Treasure issued an update on the progress on the FATF grey listing of South Africa. South Africa was grey listed by FATF at the 2023 plenary following an inspection during 2019. FATF raised 22 action items that South Africa had to show material improvement in to be removed from the grey list.
Under the leadership of National Treasury, the requisite changes in law were made that were required to resolve the action items per the inspection report. The Financial Intelligence centre, in cooperation with other regulatory bodies, issued revised guidance supported by Public Compliance Communications, Guidance Notes and Directives. Regulators intensified inspections to resolve the actions on the improvement of the effectiveness of the regulatory and compliance environment in especially the non-banking sector.
In the update by National Treasury on 13 June 2025, the Treasury were happy to report that sufficient progress has been made on all 22 action points. FATF has acknowledged that the progress indicates that South Africa has met the outcomes required to warrant the necessary onsite inspection by FATF to close the action items and finalise the report to enable FATF to remove South Africa from the grey list.
The final hurdle, with the help of the Directorate for Priority Crime Investigation (DPCI) of the South African Police Service, the State Security Agency, and the National Prosecuting Authority (NPA), FATF recognised that the level of prosecution of cases related to money laundering and terrorist financing has improved to a level that is acceptable and provide evidence of the commitment to prosecute such cases.
The FATF inspection to finally close the action items will be held before the next plenary, which is planned for October 2025. If the inspection is successful South Africa will be removed from the grey list during this plenary.
Willem Kruger
AML CPrac