Johannesburg – South Africa has been removed from the grey list of countries by the Financial Action Task Force (FATF) after it sharpened its tools to detect money laundering and terrorist financing in the country.
Announcing the positive move on Friday, 24 October, at the conclusion of the Plenary under the Mexican Presidency, FATF said: “A record four countries have been removed from the grey list of countries under increased monitoring, the so-called grey list – that is Burkina Faso, Mozambique, Nigeria and South Africa”.
South Africa was placed on the grey list in February 2023 by FATF due to limitations on its ability to stop money laundering and terrorist financing.
Being grey-listed by FATF was a warning that the country’s financial systems had weaknesses that criminals could exploit.
It triggered enhanced monitoring, meaning global banks, investors, and businesses were treating transactions involving South Africa as higher-risk.
The country was prescribed 12 areas where it could improve.
After South Africa completed all required reforms, the country has finally been removed from the grey list.
“We have just concluded the fourth FATF Plenary under the Mexican Presidency, with delegates from across our network of over 200 jurisdictions coming together,” said FATF President Elisa de Anda Madrazo.
“A global community united in our fight against illicit finance.
“With each plenary, we seek to make the world’s defences against criminals stronger. We have made a number of updates on our grey list.
“And this plenary has been a positive story for the continent of Africa.”
Over the coming months, FATF said it will continue to focus on how it can use its global intelligence and networks to better tackle the global threat that fraud represents.
