South Africa is widely expected to be removed from the FAFT grey list on Friday, a move that could strengthen investor confidence and ease the country’s financial reputation on the global stage.
The Financial Action Task Force (FATF) — an international watchdog that combats money laundering and terrorism financing — placed South Africa on its “grey list” in February 2023 after identifying weaknesses in how authorities monitored financial crimes.
Since then, the government has been racing to fix those shortcomings. Treasury, led by Finance Minister Enoch Godongwana, coordinated national efforts with the Financial Intelligence Centre, the Reserve Bank, and law enforcement agencies.
Together, they completed 22 reform “action items” required by the FATF, covering everything from company ownership transparency to prosecution of financial crime.
Analysts say that after the FATF’s on-site inspection in Pretoria in July 2025, the country has a strong case for removal.
“I think there is a strong likelihood that South Africa will be removed from the FATF’s grey list this year,” said Investec chief economist Annabel Bishop.
“The country has remedied its deficiencies and is awaiting the outcome of the announcement.”
Ndivhuho Netshitenzhe, senior economist at STANLIB, agreed, saying all 22 reforms have been completed.
“The last two were the hardest — showing a sustained increase in money-laundering prosecutions and proving that we can effectively investigate terrorist financing,” she explained .
The FATF Plenary — which began on Wednesday, 22 October (22 October 2025) in Paris — will conclude on Friday afternoon (around 16:00 SAST), when a communiqué is released confirming whether South Africa is off the list.
If delisted, the move will likely boost the rand and attract investors who have avoided South African banks and companies over compliance concerns. The rand already edged higher this week, trading at R17.31 to the dollar on Thursday, as traders bet on a positive outcome .
Vincent Gaudel, a financial crime compliance expert at LexisNexis Risk Solutions, said removal from the grey list would “ease onerous due diligence requirements” for international banks dealing with South Africa — a key obstacle since the 2023 listing.
The FATF listing has carried real economic consequences. Countries on the grey list face tougher conditions when borrowing internationally, as well as delays in cross-border transactions.
Some South African businesses and banks also had to undergo repeated audits to assure foreign partners they were not financing illegal activity.
The government’s reforms have included stricter reporting requirements for lawyers, estate agents, and financial service providers, as well as better data sharing between enforcement agencies.
These steps, Treasury says, demonstrate that South Africa can now “detect, investigate, and prosecute” financial crimes effectively.
Even if removed, experts warn the country must maintain the same level of vigilance. “Greylisting was a wake-up call,” said Bishop.
“It forced South Africa to modernise its systems and strengthen cooperation between regulators and the police. The challenge now is to sustain that progress.”
The FATF’s decision is expected to be made public on Friday evening (around 18:00 SAST), following a media briefing in Paris.
For a deeper look into South Africa’s progress in fighting financial crime, listen to Laundered, a special podcast produced by RelyComply, exploring the country’s journey from greylisting to reform.
