South Africa is inching closer to exiting the Financial Action Task Force’s (FATF) grey list, but hurdles persist. The country was placed on the list in February 2023 due to deficiencies in its Anti-Money Laundering and Combating of Terrorist Financing (AML/CFT) regime.
Following a recent FATF meeting, South Africa has managed to address or partially address eight of the 22 action items outlined for its removal from the grey list. This progress includes legal measures to combat terror financing, improved use of financial intelligence for investigations, and increased resources for relevant authorities.
However, 14 action items remain, with deadlines spread across September 2024 and January 2025. A key challenge lies in demonstrating the sustainability of these improvements over time. South Africa must convince FATF that the changes are not just temporary fixes.
National Treasury acknowledges the difficulties but remains optimistic. They aim to have all action items addressed by February 2025, potentially allowing for delisting by June 2025. This timeline hinges on successful completion of the remaining tasks in the coming reporting cycles.
