South Africa’s removal from the Financial Action Task Force (FATF) greylist is a significant development for the country’s financial system and economy. According to President Cyril Ramaphosa, this milestone enhances the nation’s international reputation and global standing, making it a more attractive investment destination. The FATF, an intergovernmental organization that sets standards for combating money laundering and terrorism financing, had identified deficiencies in South Africa’s financial system over two years ago.

Following the implementation of key reforms, South Africa has successfully exited the greylist. This achievement demonstrates the country’s commitment to improving its anti-money laundering system and combating financial crimes. The reforms include legislative amendments to enable more stringent reporting regulations around beneficial ownership, making it more difficult for individuals and syndicates to funnel corrupt activities through complex webs of shell companies and trusts.

The decision to remove South Africa from the greylist was made at the FATF Plenary meetings in Paris, France, from October 22 to 24, 2025. The removal is expected to reduce pressure on citizens, businesses, and the government, as it will attract more foreign direct investment and strengthen the country’s currency. A weakened currency can lead to increased costs of living and doing business, as well as reduced fiscal space for social spending and increased tax pressures.

The exit from the greylist also signals the country’s determination to ensure that past malfeasance is behind it. President Ramaphosa acknowledged that much work remains to be done to reduce and prevent financial crimes, and to ensure speedier investigations, prosecutions, and convictions of those committing such crimes. The focus will now be on improving and strengthening implementation, sustaining enforcement within public and private institutions, and deepening international collaboration.

The removal from the greylist is a significant step forward for South Africa, demonstrating its commitment to improving its financial system and combating financial crimes. As the country continues to rebuild and strengthen its institutions, it is expected to attract more foreign direct investment, creating a more favorable business and investment climate. With the necessary regulatory frameworks in place, South Africa is poised to make further progress in combating money laundering and terrorism financing, and to enhance its global reputation as a reliable and secure investment destination.