Greylist No More? South Africa Poised for FATF Exit in October 2025

Financial authorities hail a fast turnaround, but eyes now turn to the crucial on-site review

South Africa is on the verge of reclaiming its financial credibility. After nearly two and a half years under the Financial Action Task Force (FATF)’s greylist, the country has “substantially completed” all the actions required for removal, with an exit potentially on the cards as soon as October 2025.

If successful, this would mark a remarkably short stay compared to many countries. According to the FATF, greylisted jurisdictions typically take five to ten years to meet the necessary reforms. In contrast, South Africa appears set to achieve delisting in just 30 months.

The last hurdle: On-site inspection

The FATF’s June update confirmed that South Africa has addressed all 22 remaining action points. What stands between the country and formal delisting is an on-site visit, scheduled ahead of the FATF plenary in October. That visit will verify the effectiveness and implementation of reforms already passed on paper.

“The exit now hinges on the outcome of this on-site review,” said the Bureau for Economic Research. “If successful, we’ll see a full delisting by October.”

Preparations for that visit are already underway, with the National Treasury, SARS, and the South African Reserve Bank working around the clock to present a united, ready front.

Why the greylist matters

The FATF greylist, officially titled “Jurisdictions under Increased Monitoring”, flags countries with strategic deficiencies in preventing money laundering and terrorism financing. Though less severe than a blacklist, greylisting complicates cross-border transactions, adds bureaucratic red tape, and sends a damaging signal to global investors.

“It doesn’t just hurt big finance,” explained an economist at a local bank. “It filters all the way down to SMEs, property sales, and remittance flows. A basic international payment takes longer. Foreign investment? Less likely.”

Indeed, since the 2023 listing, many financial institutions have had to intensify compliance checks, leading to slower processing and higher operational costs.

How South Africa got here

South Africa was greylisted in February 2023, after a FATF evaluation revealed significant gaps in AML/CFT (anti-money laundering and counter-financing of terrorism) systems. The country faced 67 recommended actions, including:

• Tighter supervision of lawyers, real estate agents, and other non-financial sectors

• Establishing clear ownership structures for trusts and companies

• Enhancing investigative and prosecutorial capacity against financial crimes

Since then, the Financial Intelligence Centre (FIC), SARS, and the National Prosecuting Authority (NPA) have ramped up compliance enforcement. In particular, trusts and shell structures have come under scrutiny — a crackdown many experts say is long overdue.

SARS Commissioner Edward Kieswetter noted that enforcement is about more than FATF ratings: “This is also about restoring trust in South Africa’s institutions.”

Economic relief on the horizon

Should the October delisting go through, analysts expect a positive ripple effect:

• Lower compliance costs for banks and businesses

• Improved investor confidence

• Faster, smoother cross-border payments

• A stronger reputation globally, especially with rating agencies

“Getting off the greylist would be a dream come true for Treasury,” said one insider. “Not just because of the optics, but because it puts us back in the game as a credible emerging market.”

Looking ahead: Maintaining momentum

Delisting, however, does not mean the end of vigilance. Treasury and FATF officials have warned that the systems now in place must be actively maintained. Failing that, there’s always the risk of re-listing in future.

Still, for a country fighting to rebuild credibility after years of state capture and economic mismanagement, a clean break from the FATF greylist could serve as a turning point.

Fast exit, lasting impact

South Africa’s likely delisting would put it among a rare group of countries that resolved FATF concerns quickly. Mauritius took under two years. Malta, Serbia, and Iceland were removed in just over a year. Others — like Yemen, Syria, and the DRC have languished on the list for over a decade.

If all goes well, South Africa will close this chapter in just over two years — a rare regulatory victory in a climate where such wins are few and far between.

Now, all eyes are on the FATF’s next plenary in October. And for South African regulators, banks, and investors, that meeting could mark a long-awaited return to normalcy.

{Source: BusinessTech}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com