South Africa Anticipates Removal from FATF Gray List in 2025

The South African government is anticipating that they will address all the FATF international standards to combat money laundering and terrorist financing by early 2025 and will be able to exit from the watchdog’s increased AML monitoring list. 

The South African Finance Minister, Enoch Godongwana, declared that they are enhancing the country’s financial security system and measures to combat crimes related to money laundering and terrorist financing. He stated in the medium-term budget speech, that they “expect to address all the deficiencies” identified by the international Financial Action Task Force (FATF). Discussing the update on AML systems and controls, he claimed that SA regulatory authorities uphold “15 of the 20 technical deficiencies in the country’s legal framework to fight against organised crimes and illegal financial flows.” His comments on the loopholes in the country’s regulations signal the government’s intent to comply with international standards till 2025 and address all FATF red flags exiting from the “gray list.”

The Finance Minister stated, “since February when South Africa was graylisted by the FATF, a large number of government departments and agencies – including the police, the Hawks [Directorate for Priority Crime Investigation], NPA [National Prosecuting Authority], SIU [Special Investigating Unit], SSA [State Security Agency], the Reserve Bank, FSCA [Financial Sector Conduct Authority], and Sars [South African Revenue Service] – have been working hard to address these deficiencies.”

FATF also appreciated South Africa’s latest implementation to prevent financial crimes. The delegation in the FATF plenary meeting, held in Paris between Oct 23rd to 27th, stated that compliance with 15 to 20 technical deficiencies shows positive results. The South African government determined if stringent measures are implemented, they will be removed from the gray list in early 2025. Godongwana added, “however, there is also a significant amount of work that must still be done, particularly with regard to the investigation and prosecution of complex money laundering cases and terror financing, the identification of informal mechanisms for remitting money around the world, and the recovery of the proceeds from crime and corruption.”

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