top of page

South Africa Edges Toward FATF Grey List Exit—And the Stakes Couldn’t Be Higher

  • Writer: Derry Thornalley
    Derry Thornalley
  • Aug 3
  • 3 min read

Updated: Aug 4

There’s a quiet confidence building in South Africa’s financial circles right now—and for good reason. After more than a year on the Financial Action Task Force (FATF) grey list, the country is closing in on what could be one of its most important wins in recent memory: removal from the list altogether.


If successful, it will mark a turning point—not just in policy, but in how South Africa is perceived by global financial institutions, investors, and regulators. And make no mistake: perception is everything when it comes to capital markets.


How Did We Get Here?

South Africa was added to the grey list in early 2023, flagged for weaknesses in its anti-money laundering (AML) and counter-terrorism financing (CTF) framework. The consequences were swift: higher compliance costs, more paperwork for cross-border transactions, and reputational damage that even well-run institutions struggled to shake.


But the government didn’t sit still.

Under increasing pressure from the financial sector, multilateral lenders, and rating agencies, authorities got to work. Dozens of legislative and operational reforms followed, including:

  • Updates to the Financial Intelligence Centre Act

  • Stronger reporting obligations across banks and legal professionals

  • Enhanced collaboration between the Reserve Bank, Hawks, NPA, and the FIC

Most importantly, the number of money-laundering convictions rose sharply—from 65 in 2023 to 98 in 2024. These aren’t just paper wins; they show enforcement.


What’s Next?

According to sources close to the FATF process, South Africa has just two remaining action points to fully exit the grey list. An on-site assessment is scheduled for October 2025, where FATF inspectors will verify that the reforms are not only legislated, but implemented and effective.


If all goes well, South Africa could be delisted as early as February 2026.


That timeline matters. It gives Treasury, SARB, and the private sector a window to amplify investor engagement, reset compliance expectations, and reposition South Africa as a compliant, globally trusted financial centre.


Why This Matters

Being on the grey list hasn’t been just symbolic. It’s cost real money. Banks and investment firms have had to explain added friction in payments and client onboarding. Global partners have reassessed their risk weighting for South African transactions. Even tech companies have felt it—AML and KYC compliance became more expensive and burdensome.


Coming off the grey list will:

  • Lower transaction and due diligence costs

  • Streamline cross-border flows

  • Improve prospects for foreign direct investment

  • Potentially trigger ratings upgrades or improved borrowing terms

But perhaps more than anything, it restores credibility—that intangible, priceless commodity that underpins every financial interaction.


Delisting from the FATF grey list won’t solve all of South Africa’s problems. But it removes a persistent, self-inflicted obstacle that’s held back progress. And it shows that with political will and coordinated action, countries can clean up their act—and be recognised for it.


This is a moment worth watching. Because when the world stops treating you like a suspect, it starts treating you like a partner.

We are delighted to work together in promoting the beauty and opportunities of Mauritius.

Our websites, Mauritius Life, Veri Global, and Property Finder, are committed to providing valuable information, resources, and services related to Mauritius, its culture, economy, real estate, and more.

Please explore our websites to discover the rich cultural heritage, breathtaking beaches, thriving economy, top-notch real estate listings, investment administration, and knowledge that Mauritius has to offer. Together, we aim to showcase the best of Mauritius and assist you in making informed decisions about living, investing, and experiencing all that this beautiful island has to offer.

Comments

bottom of page