South Africa risks returning to the Financial Action Task Force greylist unless it proves that its financial crime reforms deliver real results.
The country was removed from the greylist on 24 October 2025, after spending 32 months under increased monitoring. It was first listed in February 2023 because of weaknesses in its systems for fighting money laundering and terrorist financing.
Government addressed 22 action items to secure South Africa’s removal. This included legal reforms, improved supervision and stronger rules around identifying the true owners of companies.
However, the next FATF assessment will place greater attention on whether these systems work in practice.
Tougher assessment focuses on results
South Africa’s next mutual evaluation began during the first half of 2026 and is expected to conclude in October 2027.
The assessment will look beyond laws, regulations and compliance plans. Evaluators will examine measurable outcomes, including investigations, prosecutions, convictions and the recovery of criminal proceeds.
National Treasury previously warned that South Africa cannot afford to become complacent. It said monitoring and enforcement systems must operate more efficiently, with no major gaps remaining when the evaluation is completed.
The country will also need to show that law enforcement agencies can successfully tackle serious money laundering, corruption and organised crime cases.
Weak enforcement could hurt South Africa
A renewed greylisting could place South African transactions under greater international scrutiny.
Banks and companies may face more checks when moving money across borders. This can slow transactions, increase compliance costs and weaken investor confidence.
While South Africa strengthened its legal and regulatory framework, concerns remain over whether investigations consistently result in successful prosecutions and convictions.
The FATF evaluation will test whether the progress made before South Africa’s removal from the greylist can be sustained.
Government agencies, regulators, banks and other accountable institutions will need to maintain strong records and provide reliable evidence when suspicious financial activity is reported.
South Africa may have cleared its previous action plan, but staying off the greylist will depend on enforcement. The country must now prove that its systems do more than identify financial crime. They must help bring offenders to justice and recover stolen money.
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