Johannesburg: The Financial Action Task Force (FATF) has confirmed that South Africa has substantially completed all 22 recommended action items outlined in the Action Plan adopted when the country was placed on the organisation’s grey list in February 2023. South Africa was placed on the FATF grey list due to deficiencies in its anti-money laundering and counter-terrorism financing (AML/CFT) regime.
According to South African Government News Agency, during its plenary session held in Strasbourg, France, FATF made the initial determination that South Africa has substantially completed its action plan and warrants an on-site assessment. The on-site assessment will be to verify that the implementation of AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future.
The National Treasury stated that the completion of the Action Plan paves the way for the final step before the FATF can delist South Africa, which is an on-site visit by the FATF Africa Joint Group (JG). A statement by FATF noted that South Africa has undertaken a range of key reforms, including demonstrating a sustained increase in investigations and prosecutions of serious and complex money laundering and the full range of terror financing activities in line with its risk profile.
The National Treasury emphasised the importance of the improvements to South Africa’s AML/CFT regime, given the legacy of state capture, which involved the deliberate weakening of law enforcement and prosecuting institutions. The Treasury highlighted that these improvements are critical for strengthening the fight against crime and corruption, thereby contributing to the integrity of the South African financial system.
The on-site visit is scheduled to take place before the next FATF Plenary, and if the outcome is positive, the FATF will delist South Africa from the greylist at its next Plenary in October 2025. Preparations for the on-site visit have commenced, and the JG will confirm the country’s ongoing commitment to combating money laundering, terror financing, and other financial crimes.
National Treasury commended the law enforcement entities, particularly the Directorate for Priority Crime Investigation, the State Security Agency, and the National Prosecuting Authority, for their efforts in increasing investigations and prosecutions of serious financial crimes. These efforts were instrumental in securing the upgrades of the last two remaining action items.
South Africa also acknowledged the efforts of Mali and Tanzania, who were delisted from greylisting by the FATF Plenary, and congratulated Nigeria, Mozambique, and Burkina Faso for substantially completing their action plans and gaining approval for on-site assessments.
The South African Reserve Bank welcomed the FATF’s confirmation of South Africa’s completion of all 22 action items, noting it as a significant step forward but cautioning against complacency.