South Africa’s removal from the Financial Action Task Force (FATF) grey list is a welcome relief for the country’s financial reputation, but analysts caution that the real test begins now. The decision marks the end of a 33-month process to repair the country’s weak anti-money-laundering and counter-terror-financing systems.
From Grey to Clean
The FATF placed South Africa on the grey list in February 2023, citing serious gaps in financial oversight and weak enforcement. This status meant the country faced higher scrutiny in global markets and increased costs for cross-border transactions.
Now delisted, South Africa has successfully completed 22 reform actions set out by the FATF, demonstrating measurable progress. But financial crime experts say the achievement is only a milestone, not an endpoint.
Experts Urge Stronger Prosecutions
According to Vincent Gaudel from LexisNexis, delisting reflects what can be achieved through cooperation between regulators, law enforcement, and the private sector. Still, he warns that South Africa must now prove it can sustain these gains by prosecuting offenders and recovering stolen assets.
“Tools and frameworks are in place,” Gaudel said. “Now we need outcomes people behind bars and assets recovered.”
The FATF will return in 2027 for a fresh evaluation, meaning South Africa has less than two years to show measurable results in enforcement.
Not the Finish Line
Edward Kieswetter, Commissioner of the South African Revenue Service (Sars), described the exit as “a milestone, not a finish line.” He said Sars has strengthened its intelligence-gathering and investigation units, focusing on complex tax and customs crimes tied to laundering and terrorism.
The Banking Association of South Africa added that while the move helps restore investor confidence, international assessors will continue monitoring the country’s progress as early as 2026.
Reforms Strengthen the System
Patricia Stock, CEO of SAICA, credited the country’s delisting to coordinated reforms across government and industry. She said the process had deepened integrity and transparency in the financial system, proving what cooperation between regulators and professionals can achieve.
Lawyers, auditors, and estate agents are expected to face tighter oversight as FATF’s new compliance framework broadens its focus to non-financial sectors often seen as weak links in global anti-laundering efforts.
Economic Impact and Investor Confidence
Economist Kevin Lings from Stanlib said South Africa’s greylisting had been an “embarrassing position” for a G20 presidency holder. It added complexity to offshore transactions and reduced investor sentiment.
He believes the removal will now boost confidence across business and consumer sectors. “This will help make 2026 a stronger year for the economy,” Lings said.
What the Exit Means for Business
Law firm Webber Wentzel noted that greylisting forced local institutions to raise compliance standards, increasing costs but also resilience. Those improvements will remain even after delisting.
The firm expects a rise in foreign investment as confidence returns, supported by tighter systems that prevent financial crime.
Cautious Optimism
Philip Robotham of Schroders said exiting the grey list would make doing business in South Africa simpler and cheaper. Yet he warned that other challenges from energy stability to government reform remain key to attracting capital.
“Greylisting was one obstacle, but not the only one,” Robotham said.
The Road Ahead
South Africa’s grey list removal signals global confidence in its ability to correct course. But with another FATF review in sight, experts agree the country must keep up the momentum. Sustained prosecutions, stronger oversight, and deeper institutional coordination will determine whether this progress endures.
For now, the delisting offers a rare economic win and a reminder that trust, once lost, must be continuously earned.
