South Africa moves nearer to exiting the Financial Action Task Force's graylist
In a significant development, South Africa is on the brink of exiting the Financial Action Task Force (FATF) greylist, following its substantial completion of the 22 action items required to address deficiencies in its anti-money laundering and counter-terrorism financing (AML/CFT) regime. This progress comes after the country was greylisted by the FATF in February 2023, alongside Kenya, Namibia, and several other African nations.
As of mid-2025, South Africa has made considerable strides in meeting the FATF's requirements. The country has passed critical legislation, including the Anti-Money Laundering and Combating Terrorism Financing Amendment Bill (2022), and made progress in deregistering non-compliant non-profit organizations, with over 15,000 deregistered as of June 2025.
However, the FATF Africa Joint Group's onsite inspection in July 2025 is pivotal. This review will assess both technical compliance and the measurable effectiveness of these reforms. A positive outcome from this inspection is expected to lead to South Africa’s removal from the greylist at the FATF plenary scheduled for October 2025.
The key remaining action points include demonstrating real effectiveness beyond technical legislative and regulatory changes, such as enforcement outcomes and systemic improvements. Should this onsite review confirm South Africa’s effective implementation, the country is on track to exit the FATF greylist by October 2025.
Meanwhile, the growing priority for the FATF is how nations regulate cryptocurrencies, given their rising use in money laundering and terrorist financing. Since its greylisting in 2023, South Africa has stepped up its crypto regulatory activities, licensing 248 crypto firms.
It's worth noting that African countries make up 57% of the FATF grey list, highlighting a broader issue of compliance with AML/CFT regulations across the continent. Global financial institutions are shifting resources and services away from countries on the FATF's black and grey lists due to concerns about loose AML/CFT rules.
As the FATF plenary approaches in October, the world watches as South Africa strives to demonstrate its commitment to combating money laundering and terrorist financing, and potentially exit the greylist. The outcome of this review could have far-reaching implications not only for South Africa but for the continent as a whole.
- South Africa, having passed critical legislation such as the Anti-Money Laundering and Combating Terrorism Financing Amendment Bill (2022), is making significant progress in meeting the Financial Action Task Force's (FATF) requirements.
- The FATF Africa Joint Group's onsite inspection in July 2025 will assess both technical compliance and the measurable effectiveness of these reforms, with a positive outcome expected to lead to South Africa’s removal from the greylist at the FATF plenary scheduled for October 2025.
- In the broader African context, African countries make up 57% of the FATF grey list, indicating a need for improved compliance with Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) regulations across the continent.
- As the FATF places increasing emphasis on how nations regulate cryptocurrencies due to their rising use in money laundering and terrorist financing, South Africa has stepped up its cryptocurrency regulatory activities, licensing 248 crypto firms.
- Should South Africa successfully exit the FATF greylist by October 2025, it could set an example for other African nations to follow in terms of AML/CFT regulation and compliance, potentially impacting the continent's fintech, banking-and-insurance, and general-news business landscapes.
- The impact of the FATF's policy-and-legislation decisions on countries like South Africa extends beyond finance, reaching into the realm of politics and international relations, with global implications for the African continent.
