South Africa Hails Removal from FATF Grey List as Confidence in Economy Rises
South Africa’s removal from the Financial Action Task Force (FATF) grey list has been met with widespread approval from the business community, government, and economic analysts, marking a pivotal moment in the country’s reform journey.
The decision follows nearly three years of corrective measures to strengthen the nation’s framework against money laundering and terrorist financing. During this period, authorities addressed 22 action points identified by the FATF after South Africa’s grey listing in February 2023.
Business and financial leaders described the outcome as a confidence boost for investors and a milestone for the local economy. The Banking Association South Africa (Basa) said the delisting would help restore investor trust in the country’s financial integrity. “The integrity and effective regulation of the South African financial services sector is an advantage for the country as it competes to attract international investment. The FATF decision is an important data point for those who are looking for concrete evidence that South Africa can remove obstacles hampering business and investment through action, not only policy announcements,” the organisation said.
North West University Business School economist Professor Raymond Parsons welcomed the development, calling it “a confidence-building factor at a critical time in our business cycle.” He added that it “ marks South Africa crossing a key threshold in financial reform,” helping to reduce uncertainty and transaction costs while reinforcing the nation’s credibility in global markets.
The announcement follows a lengthy review process by the FATF, including an on-site visit by assessors in July 2025 to evaluate the sustainability of South Africa’s reforms. During that engagement, Deputy Finance Minister David Masondo and Deputy Justice and Constitutional Development Minister Andries Nel reaffirmed the government’s ongoing political commitment to financial transparency.
National Treasury described the FATF decision as an important step forward, while cautioning that continued vigilance is necessary. “While exiting the grey list is an important milestone and a demonstration of South Africa’s commitment to rebuilding the rule of law, it is only the start of a broader process… Neither government agencies nor regulated entities in the private sector can afford to become complacent,” it said.
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Basa emphasised the need to rebuild trust in South Africa’s law enforcement institutions, noting that the FATF’s recognition of the country’s improved capacity to combat financial crime comes at a time when public confidence in the criminal justice system remains under pressure.
JSE CEO and Operation Phumelela chairperson Leila Fourie described the delisting as a major milestone for South Africa’s financial sector, noting that it restores confidence in the financial system, reinforces the country’s position as a leading African financial hub, and underscores its commitment to global standards of financial integrity.
BLSA CEO Busisiwe Mavuso highlighted that the country’s inclusion on the grey list had been one of the consequences of institutional decline during the State Capture years. “Grey listing was a consequence of the State capture era, which saw the deliberate undermining of commercial crime investigation and prosecution institutions,” she said. “The fact that we have now rebuilt these capabilities and in some cases built them beyond where they were before… shows what happens when we confront the consequences of State capture head-on rather than pretending they don’t exist.”
Mavuso added that South Africa’s determined reform efforts over the past 32 months had limited the economic fallout from the grey listing and demonstrated that credible progress can yield measurable results.
B4SA and Business Against Crime South Africa also praised the achievement, emphasising that joint efforts between government and business would continue, particularly as the country prepares for its next FATF mutual evaluation in 2026.
Economists predict that South Africa’s removal from the grey list will restore confidence in financial markets, attract investment, lower borrowing costs, and reduce the scrutiny faced by cross-border transactions. While the FATF will continue to monitor the country’s anti-financial crime capacity, analysts agree that the move represents a decisive step toward stability and renewed credibility.
South Africa’s delisting came alongside similar decisions for Nigeria, Mozambique, and Burkina Faso, further signalling regional progress toward global financial compliance.
