South Africa has been delisted from the notorious greylist after more than two years of intense scrutiny by the Financial Action Task Force (FATF). The global financial crime watchdog placed South Africa on the list in February 2023 for not complying with international standards around the prevention of money laundering and terrorist financing.
The country has taken more than two years to shed the unwanted tag, having successfully addressed twenty-two urgent action items.The FATF made the latest decision on the final day of its Plenary and Working Group meetings in Paris on Friday 24 October 2025. Burkina Faso, Mozambique, and Nigeria have also been delisted from the greylist.
South Africa’s exit from the Financial Action Task Force (FATF) greylist restores financial credibility and should ease cross-border frictions, but the spotlight now shifts to sustaining effective Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) enforcement and high-quality beneficial-ownership transparency. Priority actions include maintaining momentum on investigations and sanctions, tightening controls in higher-risk sectors and preparing documentation for scrutiny ahead of the 2026–27 mutual evaluation.
Legally, it signals that South Africa’s framework is no longer viewed as deficient in either technical compliance or effectiveness while making clear that ongoing results, not one-off reforms, will be the measure going forward.
Removal from the greylist does not relax domestic obligations. Amendments to the Financial Intelligence Centre Act (FICA) and related statutes, beneficial-ownership registers at the Companies and Intellectual Property Commission and Masters’ Offices and heightened supervisory expectations by the Financial Intelligence Centre (FIC), Prudential Authority, South African Reserve Bank, Financial Sector Conduct Authority (FSCA) and other supervisors all remain in full force. Accountable institutions must continue to apply a risk-based approach to customer due diligence (CDD), politically exposed person (PEP) management, ongoing monitoring, targeted financial sanctions screening, suspicious and unusual transaction reporting and record-keeping.
The next FATF mutual evaluation will test whether reforms produce consistent, repeatable outcomes. Firms that embed risk-based controls, invest in data quality and analytics and demonstrate timely remediation will benefit from smoother cross-border interactions and better access to global financial services.
Delisting is therefore not deregulation; it is a pivot from catch-up to continuous improvement. The legal framework now in place is sufficiently robust. The task for boards and executives is to convert that framework into everyday practice so that South Africa’s financial system remains transparent, resilient and open for business.
Meanwhile, the South African Revenue Service (SARS) has welcomed the decision by the Financial Action Task Force (FATF) to delist South Africa from its “grey list” of jurisdictions under increased monitoring. The revenue service indicated that this was a significant moment for the country and a testament to the whole of government approach and its institutions to restore the integrity of our financial system.
While the FATF’s initial grey-listing in February 2023 was a consequence of systemic weaknesses aggravated during the era of state capture, SARS is acutely aware that it, along with other key institutions, was impacted and must continue to play a crucial role in preventing any future regression. Commissioner Edward Kieswetter notes that “we recognise that removing the designation of grey listing is not a finish line but a milestone on a long-term journey toward building a robust and resilient financial ecosystem”.
SARS says it is proud to have supported the national effort to meet the 22 action items required by the FATF. Specific contributions include:
Enhanced investigation and collaborate recovery: In partnership with other law enforcement agencies through forums such as the National Priority Crime Operational Committee (NPCOC), the National Joint Operational and Intelligence Structure (NATJOINTS), the Inter-Agency Working Group on Illicit Financial Flows, the Fusion Centre, the South African Anti-Money Laundering Integrated Taskforce (SAMLIT), Inter-Agency Working Group on Illegal Money or Value Transfer Services (MVTS) and the State Capture Task Force, SARS has strengthened its financial intelligence-gathering capabilities and increased investigations and asset preservation/recovery in relation to tax and customs crime matters involving complex money laundering and terror financing schemes.
The introduction of key legislative amendments: The Tax Administration Act was amended in 2023 to enable information exchange with CIPC, MOHC and the Department of Social Development (DSD) further supporting the national beneficial ownership information framework.
The rollout of a Traveller Management System: The development and piloting of a digital traveller declaration system for cash and bearer negotiable instruments (BNIs) on entry and exit at all borders. This system enables the sharing of information with the FIC and is expected to become mandatory by the end of 2025.
Capacity building (joint and SARS driven): SARS provided training to its officials as well as other law enforcement officials on money laundering, beneficial ownership, legal gateways for information exchange and the application of mutual legal assistance. This aligns with SARS’s broader strategy to use data-driven insights and sophisticated technology to detect and combat tax evasion and other financial crimes.
SARS’s focus now shifts to embedding these improvements permanently and sustainably into our operational DNA. This means continuing to:
- Make it clear and easy for taxpayers to comply with their obligations to pay tax.
- Enforce our tax and customs laws decisively and fairly without fear, favour, or bias.
- Cooperate effectively with domestic and international partners in combatting the illicit economy.
- Utilise sophisticated data and business intelligence to understand and counter illicit financial flows.
Commissioner Kieswetter says that “this delisting is a vote of confidence in South Africa’s progress, but it is not an end to our vigilance. The fight against financial crime and corruption is a continuous one. SARS remains committed to upholding the highest standards of financial integrity and, as we approach the new round of FATF review commencing in the latter part of 2026, SARS will work relentlessly to ensure that we do what is required to combat the illicit economy. By doing so, we will not only maintain our standing with FATF but, more importantly, continue to build public trust and confidence in our financial system, and create a stronger, more prosperous South Africa for all.”
Sources:
South African Revenue Service
Baker McKenzie: South Africa: Removal from the FATF greylist — What this means for compliance and enforcement