FATF Concludes On-Site Visit to SA as Delisting From Greylist Nears

The FATF Africa Joint Group’s visit aimed to verify that South Africa has effectively implemented reforms outlined in a 22-point Action Plan adopted in February 2023 when the country was greylisted.

South Africa has taken a critical step toward being removed from the Financial Action Task Force (FATF) greylist, following the completion of a key on-site assessment by the FATF Africa Joint Group. The visit, which took place on 29–30 July 2025 in Pretoria, marks the final procedural hurdle before the October 2025 FATF Plenary decides whether the country has sufficiently addressed deficiencies in its anti-money laundering and counter-terrorist financing (AML/CFT) regime.

On-Site Assessment Validates Reform Implementation

The FATF Africa Joint Group’s visit aimed to verify that South Africa has effectively implemented reforms outlined in a 22-point Action Plan adopted in February 2023 when the country was greylisted. This greylisting was a blow to investor confidence, prompting South Africa to initiate a series of far-reaching financial regulatory and institutional reforms.

During the two-day visit, the Joint Group held extensive meetings with government representatives, financial institutions, and designated non-bank financial entities. These sessions evaluated the robustness of South Africa’s measures to combat money laundering and terrorism financing and to ensure their sustainability through institutional and political commitment.

Senior Government Leaders Reaffirm Commitment

The visit culminated in a high-level meeting between the FATF Africa Joint Group and Deputy Minister of Finance Dr. David Masondo, along with Deputy Minister of Justice and Constitutional Development Andries Nel. Both leaders reiterated South Africa’s political will to uphold and strengthen its AML/CFT systems beyond the delisting process.

“The South African government remains fully committed to sustainably improving the country’s Anti-Money Laundering and the Combating of the Financing of Terrorism system,” the National Treasury stated in a press release on Thursday.

This political assurance is a vital criterion for delisting. The FATF does not only assess technical compliance but also expects a demonstration of enduring political resolve to enforce and improve AML/CFT efforts over the long term.

Journey Toward Greylist Removal

The on-site visit follows the June 2025 FATF Plenary, which acknowledged South Africa’s substantial completion of all 22 action items on the original Action Plan. These items addressed critical deficiencies in the country’s legal, regulatory, investigative, and judicial response to illicit financial flows.

Some of the key improvements include:

• Strengthened supervision of banks and non-bank financial institutions.

• Enhanced investigative and prosecutorial capacity targeting financial crimes.

• Improved beneficial ownership transparency of legal persons and arrangements.

• Increased sanctions for non-compliance by institutions with AML/CFT obligations.

• Robust cooperation mechanisms among domestic regulatory bodies.

The FATF Africa Joint Group’s report from the visit will be submitted for review at the FATF Plenary scheduled for 24 October 2025. The outcome of this meeting will determine whether South Africa is officially removed from the greylist.

Treasury Pauses Public Communication

In the lead-up to the October decision, the National Treasury has announced a temporary pause on public communications related to the FATF process.

“Treasury will not be issuing further media statements or conducting interviews until the FATF Plenary concludes its next Plenary Meeting on 24 October 2025 and issues its post-plenary outcomes media statement,” the statement concluded.

Implications for South Africa’s Financial Sector

South Africa’s inclusion on the greylist in 2023 had significant consequences. It raised the cost of cross-border transactions, introduced reputational risk for local banks and businesses, and strained relationships with global investors and correspondent banks. Removal from the greylist would be a welcome development for the financial sector, potentially restoring investor confidence and improving the country's image in the global financial system.

Beyond FATF compliance, the greylisting episode has served as a catalyst for broader financial governance reform in South Africa. The government’s collaborative engagement with the FATF Africa Joint Group since 2023 is seen as a model of diplomatic and regulatory cooperation.

Deputy Ministers Masondo and Nel expressed gratitude to the FATF team for its professionalism and the constructive nature of their engagement over the past two years. They further emphasized South Africa’s intention to remain a proactive participant in the FATF global network to uphold the integrity of international finance.

As the October FATF Plenary approaches, South Africa awaits a decision that could reset its trajectory in global financial governance and serve as recognition of its significant progress in strengthening its institutions against illicit financial activity.